Part 8/12:
Turning to social issues, Hassett addresses the widening income gap highlighted in recent media reports. He explains that historically, low-income individuals experienced significant income growth during the Trump administration due to a booming job market and increased capital investment. This improved labor demand helped reduce income inequality, as measured by the Gini coefficient.
He underscores that consumption patterns—such as retail sales—are robust across income groups, signaling that even lower-income consumers remain optimistic about the economy. This resilience is a positive sign, even as structural inequalities persist.