Trump Won’t Give America’s Working Families a Break this Labor Day

Trump Won’t Give America’s Working Families a Break this Labor Day

For over 130 years, Labor Day has been recognized as a federal holiday in honor of America’s workforce, but this year, American working families will not get a break thanks to the disastrous economic policies the Trump administration has enacted. Families are paying more for energy costs as electricity prices are rising faster than inflation; paying more to send their children back-to-school as the cost for some essentials are up 40%; and paying more for groceries and health care. The newly released July PCE report makes clear that inflation remains sticky — meaning prices are not easing as quickly as expected and inflation continues to be a persistent concern. Families are leaning on savings and credit just to cover their bills. What looks like resilience in spending is in reality a warning sign that households are stretched thin.

Meanwhile, corporations and the wealthy are benefitting from the GOP budget law. This week, on J.M. Smucker’s earnings call, their CEO thanked Trump and Republicans for the increase in profits.

This Labor Day, Americans are not only finding it harder to keep money in their pockets, many are seeing fewer opportunities for jobs, as 20% of consumers reported that jobs are hard to get — the highest since 2021. For those that have secured employment, the Trump administration has weakened worker rights and protections.

Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez reacted with the following statement:

“This Labor Day, hardworking Americans across the country are tightening their belts, while big corporations rake in skyrocketing profits fueled by Trump’s billionaire tax breaks and price hikes on consumers. This isn’t economic growth; it’s greed in plain sight. Trump’s economic agenda does nothing to fulfill his campaign promise to lower costs for everyday people. Instead, they are paying more and have fewer opportunities as a result of his policies.”

This week in the Trump Slump, new polling and economic indicators continue to show that President Trump’s actions are deeply unpopular, hurting the economy, and harming America’s workers

Polling and Economic Indicators on Trump’s Handling of the Economy:

• Trump’s handling of the economy remains deeply unpopular as new data from Quinnipiac shows that nearly 60% of voters disapprove of Trump’s handling of the economy and new polling from Gallup reveals that Trump’s approval on the economy is at 37%, which is 15 points below his average of 52% on the same issue during his first presidential term.
• Most Americans, six in 10 (61%), say the national economy is in poor condition, according to new AP-NORC polling.
• The Conference Board’s Consumer Confidence Index fell by 1.3 points in the month of August. The Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — decreased by 1.2 points to 74. Expectations remained below the threshold of 80 that typically signals a recession ahead.
• As consumer confidence weakens, July’s Personal Consumption Expenditures Price (PCE) Index showed President Trump continues to fail in delivering on his promise to lower the cost of living for America’s working families. Core PCE — the Federal Reserve’s preferred measure of inflation — is the highest in five months, climbing to 2.9%. In July, core PCE rose 0.3% and headline PCE, which includes food and energy, increased 0.2%. Both measures show that inflation remains stubborn and families are not yet seeing relief.
• The University of Michigan’s Index of Consumer Sentiment fell back about 6% in August, declining for the first time in four months. Concerns about inflation are on the rise, with year-ahead inflation expectations rising from 4.5% last month to 4.8% this month. Moreover, perceptions of many aspects of the economy slipped. Buying conditions for durable goods subsided to their lowest reading in a year, and current personal finances declined 7%, both due to heightened concerns about high prices.

Additional Economic Indicators:

• Fewer Americans are becoming homeowners as data from the U.S. Census Bureau and Department of Housing and Urban Development shows new home sales in the U.S. declined 8.2% in July from the previous year and down from June.
• New orders for manufactured durable goods in July, down three of the last four months, decreased $8.8 billion, following a 9.4% decrease in June.
• The most recent survey from the Federal Reserve Bank of Richmond showed that manufacturing activity in the region remained soft in August.

C-Suite Commentary:

• J.M. Smucker CEO said on an earnings call: “We did increase our free cash flow outlook from $875 million to $975 million for the full fiscal year. That increase of $100 million is largely driven by the benefits coming through the One Big Beautiful Bill Act. And it is not a one-time benefit. It will be an ongoing annual benefit as we move forward into subsequent fiscal years.”
• BJ’s Wholesales CEO said on an earnings call: “A good category to think about might be seasonal holiday decor where the vast, vast majority of that stuff is built in China, and obviously comes with a steep tariff on it, maybe a little less of a tariff today than we thought a couple of months ago when you’re really placing those orders. But regardless, I think the prices are going to rise on things like that.”

Expert Commentary:

• Matt Bush, a US economist at Guggenheim Investments, told CNN in an interview, “Businesses say they’re working both with suppliers and consumers to help share some of the cost burden… They do indicate that they’re willing to eat some of the cost for now. But I think as the realization sets in that these tariffs are not going back down, they will start to pass more on to consumers.”
• Groundwork Collaborative’s Executive Director Lindsay Owens published an op-ed in Rolling Stone, debunking the myth that Democratic nominee Zohran Mamdani’s proposed millionaire tax will drive millionaires out of New York City: “The evidence for millionaire tax flight is scant. If high earners were truly fleeing high taxes, low-tax states would be swarming with millionaires. Instead, the highest concentrations of millionaires are found in high-tax states like Connecticut, Maryland, and New Jersey. And in these states, taxes levied on the highest earners have been broadly successful, with ​​Massachusetts millionaire tax generating an additional $2 billion in revenue than expected in the last year alone.”
• Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez reacted to Trump’s attempt to fire Federal Reserve Governor Lisa Cook: “Far from furthering his goal of lower interest rates, Trump’s attacks on the Fed and nomination of political hacks to serve as board members will only erode confidence in U.S. markets, driving up interest rates and raising prices for families. He is firing anyone who gives him bad economic news while doing nothing to address rising costs, a weakening labor market, and slower economic growth. Trump’s illegal attempt to fire Fed Governor Lisa Cook is nothing more than politically motivated lawfare to cover up his own economic mismanagement.”
• Groundwork Collaborative’s Senior Fellow Kitty Richards published an op-ed on MSNBC.com warning Trump’s attacks on the independent federal agencies undermine our economy and democracy: “Whether through dismissals or pressure campaigns, the politicization of the institutions tasked with measuring and managing the economy will erode trust in American governance and markets. The Fed, in particular, draws its power to manage interest rates and inflation in part from trust: If investors and consumers begin to believe that the Fed will allow inflation to get out of control, these expectations can become a self-fulfilling prophecy, and interest rates will jump in response. If investors across the world no longer see the U.S. as the safest bet for their money, borrowing costs for the government, businesses and consumers will rise.”