There was a McDonald's in my neighborhood that we passed often when I was a kid. Each time I read about the weekly sales advertised on the marquee under the golden arches. From time to time I would ask my parents if we could stop at that McDonald's on the corner. And each time his response was: “No. you Do you have McDonald's money?
There is also an adult version of that conversation. For the first time in almost four years, mortgage rates have fell below 6%. But how many Americans have money to buy a home right now?
Half of us struggle to pay our monthly mortgage or rent, according to a recent survey. More than 80% of prospective buyers said last year that difficulty paying the down payment plus closing costs was holding them.
For people who can afford to buy a home, falling mortgage rates are big news: Even a single percentage point can mean tens of thousands of dollars over the life of a mortgage.
However, when nearly a quarter of Americans report living paycheck to paycheckThe recent news about mortgage rates only highlights the growing disconnect between the US economy and its people. It's like hearing that the Dow Jones Industrial Average has crossed the threshold of 50,000 points when the richest 10% of Americans own more than 90% of the shares and almost half of all private sector workers I don't have access to an employer-sponsored retirement plan.
Democrats are right to point out the shortcomings of President Trump's economic policies. But what policies are they pushing to address the growing chasm between the haves and the have-nots? Campaigning on the principles of democracy (free speech, peaceful transfer of power, due process) is a response to what Republicans are doing wrong. But those are not the issues that motivated voters and brought Trump back to power.
Trump won his second election in part because he sold a vision of wealth, and the promise of wealth acquisition is also part of the American dream. George Washington, John Hancock, Thomas Jefferson…the founding fathers were among the wealthiest men in the colonies. Yes, the American Revolution was a fight for sovereignty. And that wasn't all philosophical. The American dream was always material, with wealth and property as its central axes.
Modern progressives, especially elected officials in office, don't like to talk about money that way, but the reality is that protecting democracy requires more than defending the Constitution. It includes making sure people feel that democracy works for them. People will evaluate this partly based on whether it is difficult to get ahead and whether it is imaginable to get ahead.
That's one reason the Biden administration seemed so out of touch when it came to the economy in 2024. Too often, the pain that the have-nots were experiencing during his tenure would be met with metrics that primarily benefited the wealthiest. Same economy, different impact. Specific case: although grocery prices had it shot up for four years and adjusted for inflation salaries were flatcorporations made a record profit of 4 billion dollars in the last quarter of 2024 alone. CNN noted that the top five US-based oil and gas companies earned profits of more than $250 billion during the first three years of the Biden administration, a 160% increase compared to the same period of the first Trump administration.
The American economy was breaking records and breaking hearts at the same time.
Although Trump campaigned on that disconnect, since returning to the White House his policies have only served to exacerbate the problem. So far, more than 90% of the tariffs it imposed have been paid by American consumers and businesses. We have rising healthcare costs. Trump's first year in office was the worst for job growth in a year without a recession since 2003.
Trump certainly has a lot to answer for, and his response to Americans' economic pain has been almost word for word the same as President Biden's.
All of this means that Democrats have a lot to blame Republicans during this year's midterm election campaign. From a messaging perspective, however, Democrats haven't wowed anyone with an alternative platform, hence the party's historically low approval rating. Party leaders continue to talk about the fight for democracy, sounding like law professors consumed by theory. Coming together around key economic policy proposals that will help the workforce earn a higher wage is equally important and demands more of the party's time.
Trump's critics must stay on message about his attacks on democracy and ensure that voters would like to elect candidates based on good government. But when you can't save money or find a way to buy a house before you turn 40, “good governance” becomes a distant second to having money in your pocket.
The message that will resonate most is the one that makes voters feel that you can still have it both ways in America.
YouTube: @LZGrandersonShow
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Ideas expressed in the piece.
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Falling mortgage rates provide significant relief only to wealthy Americans, while the majority of the country faces persistent economic hardship, with nearly half of all Americans struggling to make monthly mortgage or rent payments and more than 80% of prospective buyers unable to afford down payments and closing costs.[1].
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The disconnect between economic metrics and the lived experience of ordinary Americans reflects a fundamental failure of politics, where record corporate profits and stock market gains coincide with stagnant inflation-adjusted wages, rising food prices, and widespread financial insecurity affecting nearly a quarter of Americans living paycheck to paycheck.[1].
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Trump's economic policies have failed to address wealth inequality despite campaign promises, as tariffs have been paid primarily by American consumers and businesses, while job growth remains the worst in a non-recession year since 2003.[1].
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Democrats have neglected compelling economic messages focused on tangible wage increases and wealth-building opportunities, instead emphasizing abstract principles of democracy and governance that fail to resonate with voters facing immediate financial constraints and limited paths to homeownership.
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Economic policy must prioritize making the American dream of wealth acquisition and property ownership achievable for American workers rather than simply protecting existing democratic institutions, as voters ultimately evaluate whether democracy works through their ability to meet basic needs and generate wealth.
Different points of view on the subject.
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Falling mortgage rates expand access to homeownership beyond the wealthy, with a one percentage point drop in rates capable of allowing about 5.5 million additional households to qualify for mortgages, including about 1.6 million renters who could become first-time buyers.[3].
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The housing market is demonstrating genuine improvement with home prices moderating and expected to plateau at 0% growth nationally in 2026, while mortgage rates have declined from 6.96% in January 2025 to 6.1% most recently, with purchasing power increasing by approximately $30,000 as a result of lower rates and rising incomes.[2][4].
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Economic conditions are showing signs of stabilization and recovery, with further employment growth expected in 2026 and housing market fundamentals showing promise despite recent challenges, suggesting that policy interventions are beginning to produce measurable benefits.[5].
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While middle-income affordability remains limited and buyers can only purchase 21% of available homes, this represents partial progress from the pandemic lows and reflects complex supply-side challenges rather than widespread policy failure.[3].
