With just two weeks left for the midterm elections, American voters face a significant decision: choosing control of the House and Senate between President Trump’s party and his Democratic opponents. For many, this election centers on the cost of living. Inflation rose by 0.6% in September, amounting to a 3.7% increase this year. Energy costs account for half of this rise. Wholesale inflation climbed by 1.3%, reaching its highest level since December 2022. Additionally, the number of homes sold this year has hit its lowest point since 2014. Many find affording a house challenging in the current economic climate.
Despite President Trump’s assertion of a “Golden Age of America,” numerous people feel financially strained. This is due to rising costs, with wages failing to keep pace. Home prices increased by nearly 60%, rent by 33%, groceries by 32%, electricity by 46%, gas by 69%, and health care by 20%. These expenses aren’t optional, leading to widespread financial strain across the nation.
Not all Americans are financially struggling, though. A Federal Reserve report found that from 2022 to 2025, the average American family’s real net worth increased by only 2%. In contrast, the wealth of the richest and oldest Americans surged by over 30%. The net worth of individuals aged 75 and older rose by 37%, while those under 35 experienced a 23% decline.
“Young Americans faced a 23% decrease in their net worth, while the wealthiest older Americans saw nearly a 40% increase.”
The median net worth of the oldest American households grew from approximately $366,000 to over $500,000 within three years. In contrast, those under 35 saw a drop from $42,000 to $32,000. Younger generations, particularly millennials, contend with double the debt compared to Boomers while experiencing significant net worth losses.
Americans aged 55 and over now account for $140 trillion of wealth, nearly three-fourths of the nation’s net worth. This is despite representing less than a third of the population, per a Bank of America Institute analysis. While not all older Americans are affluent, a third of Boomers lack retirement savings. The wealthiest 10% hold 71% of Boomer wealth, masking broader economic weaknesses.
The spending habits of the wealthiest drive more than half of consumer spending. Boomers’ reluctance to leave their homes contributes to a housing shortage, pushing home prices up by 55% since 2020. Empty-nest Boomers control about 30% of homes with three or more bedrooms, almost double the rate of millennials with children. Social Security benefits are set to increase by 3.6% in 2027, providing additional financial support to retirees.
Today’s economy channels wealth toward older, prosperous populations, often at the expense of struggling young people. The strained young generation supports the benefits of the more secure older group without the same assurance for their future. Social Security, paid for by the young, risks becoming insolvent by their retirement. Meanwhile, young families grapple with high medical costs while funding Medicare for richer seniors.
Such financial disparities are fueling discontent among younger individuals, prompting many to reconsider capitalism favoring socialism instead. Politically, neither party has effectively addressed these issues. The Democrats propose banning fossil fuels to reduce energy costs but lack broader solutions for healthcare or groceries. The Republicans’ plans remain unclear, with Trump dismissing the affordability crisis as a “hoax.” Addressing these economic challenges is vital for future political success.
**Batya Ungar Sargon** hosts “Batya!” on NewsNation, airing Saturdays at 7 p.m. Eastern Time. NewsNation is a sister company of The Hill.
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