The divide: who really profits in today's economy?

"I spent the weekend wondering about the insistent feeling in the United States that few but the ultra-rich, even businesses, are making enough money to afford the basics of a comfortable life. The New York Times published a story recently about Broadway's rising costs that featured the grim stat: None of the musicals that opened last season have made a profit. The shows' failure to recoup their investments comes even as Broadway tickets are more expensive than ever before. So who is making any money?"

"More broadly, the rising prices of groceries versus perceived wage stagnation played a significant role in the 2024 presidential election and persists as a major policy issue in the New York City mayoral election, which is a local contest that plays out on a national stage. Despite the high price of food in the US, farmers aren't raking it in. They face enormous shortfalls, largely due to Trump's tariffs and China's retaliation against them."

"The gap between perception and reality was the subject of a series from the Guardian's US business desk last year, The Confidence Question, which I'd highly recommend if you're in the mood to ruminate like me. The only exceptions seem to me to be technology companies. Everyday job seekers describe a harsh and sluggish market, with one job seeker cut from USAID by the scythe of Elon Musk's Doge telling the Guardian that 400 applications resulted in just six interviews."

Economic prosperity in the United States is concentrated among the ultra-rich and certain technology firms while many others struggle. Broadway shows lost money despite record ticket prices, and grocery inflation versus perceived wage stagnation shaped recent elections and local politics. Farmers face large shortfalls driven largely by tariffs and foreign retaliation. Job seekers encounter a harsh market with very low callback rates, while tech firms and AI talent receive massive payouts and companies like Nvidia generate outsized profits. The resulting divide between winners and losers in the economy raises concern about future social and political consequences.

Read at www.theguardian.com