Part 7/9:
Addressing concerns about rising income inequality, Hassett referenced recent articles highlighting the widening divide between the wealthy and the poor. He contrasted this with his previous observations during President Trump's administration, where policies promoting capital investment and strong labor demand led to substantial income growth at the lower end of the income spectrum.
"When there's a big capital investment boom, the bottom 10% tend to see the highest wage growth," he explained, noting that high retail sales figures—from nominal retail sales up 6% annually—indicate robust consumption that benefits all income groups.