Trump’s Economic Surge: Median Household Income Rises as American Prosperity Hits All-Time High

By Stephen Moore
Tuesday, 23 December 2025 04:52 AM EST

I’ve been shocked that Americans are in such a grumpy mood as reflected in all the public opinion polls. At the same time, we have peace and prosperity, including more income, more wealth, and more of almost everything we want to buy—yes, except for housing. Americans seem to think we have an “affordability crisis.”

In 2025, the median household income in the United States rose to more than $86,000 annually—a record high. Every income group and every ethnic group is richer today than ever before. Hispanics now boast a median household income above $70,000, which would make them prosperous in most countries where they or their parents originated.

This upward trajectory of living standards has been the norm throughout our nation’s history. Yet this past year has been one of the strongest, with incomes rising nearly twice as fast as inflation. This surge began after a regime change in Washington at the start of 2025, when Donald Trump assumed office. Under his leadership, common-sense economic, education, energy, environmental, and financial policies have delivered tangible results.

Here are key achievements marking the first year of Trump’s presidency:
– Median family income after inflation increased by $1,250.
– Incomes for the bottom 25% rose after inflation, disproving a “rich getting richer, poor getting poorer” narrative.
– Wealth in average 401(k) plans grew by $21,000 annually—reversing a more than $20,000 real decline under previous administration.
– Over one million families gained access to higher-performing schools through Trump’s education savings accounts.
– No tax on tips or overtime takes effect for millions of workers starting January 1, 2026.
– The federal budget deficit—once a clear and present danger—declined by roughly 2.5% in 2025 and another $170 billion within the first two months of fiscal year 2026, despite Trump tax cuts.
– Servicemembers received a $1,776 end-of-year bonus.
– City crime rates dropped sharply: gun assaults fell 21%, aggravated assaults dropped 10%, sexual assaults declined 10%, and carjackings decreased by 24% compared to Biden-era levels.
– Illegal immigration plummeted 92% from the peak under prior leadership.
– The United States now produces more oil and gas than ever before in American history. Gas prices, which neared $5 a gallon under previous administration, have fallen to $2.89 per gallon today.

The swamp in Washington has been drained: nearly 300,000 federal jobs were eliminated, over 400 intrusive regulations repealed—including racial quotas in hiring and Biden-era mandates requiring electric vehicle purchases—while the student loan “forgiveness” program was canceled. The stock market reached all-time highs across major indices, with the S&P 500, Nasdaq, and Dow Jones Industrial Average all climbing to unprecedented levels.

Yet young Americans remain grim in their outlook, oblivious to how blessed they are to live in a nation of peace and unprecedented prosperity at this unique moment. They overlook the economic signs pointing firmly north toward a future with all the promise they deserve. As the angel Clarence famously urged Jimmy Stewart in It’s a Wonderful Life, “You see, George, you’ve really had a wonderful life.”