The Two Americas
Many today refer to the two Americas as Democrats and Republicans. Team Blue or Team Red. Yet, there is another version of the two Americas. This one divides the country not by politics but by finances.
On one side is roughly the financially top half of America, which has grown wealthier over the past few decades. Meanwhile, the other side has watched its financial well-being wither, effectively becoming poorer as cost growth has outpaced income growth. Furthermore, it has seen its ability to rise financially decrease.
This growing financial divide between these groups has become particularly poignant in recent years. And in some ways, boiled over in the tariff discussions of the past few weeks.
When President Trump announced a sweeping “reciprocal tariff” plan earlier this month aimed at trading partners that run surpluses with the United States, the stock markets promptly tanked. Many immediately argued that the sell‑off was proof of a misguided tariff strategy.
Now, the tariff strategy may be misguided. But the stock market may not be the most telling metric. In fact, it's one reason why wealth in the U.S. has diverged. While stock values have soared dramatically in the past few decades, a significant portion of Americans haven't benefited because they aren't invested. This chart shows the percentage of families who hold investments:
Digging further reveals other important stories. Among households earning more than $100,000, about 85 percent hold equities. But only one in four lower‑income families do. Even more striking, data shows that the wealthiest ten percent of Americans own approximately 90 percent of the entire market’s value. The bottom half of families combined? Just about one percent.
This imbalance helps explain why decades of record stock‑price appreciation have not translated into shared prosperity.
For generations, the middle class achieved prosperity and wealth through stable jobs, often in manufacturing. But this has sputtered in recent years. In 1979, the sector employed nearly twenty million Americans. Today, that number has shrunk to about thirteen million people, even though the nation’s population has grown by about a hundred million.
This resulted from off‑shoring, automation, and pressure to trim costs, which hollowed out many towns built around steel, textiles, furniture, and automobiles. Many displaced workers eventually found jobs, but often in lower‑wage service roles that offer slimmer paths to home equity, investments, or retirement savings.
Against this backdrop, the tariffs feel like a long-overdue course correction for some Americans. While a blunt implementation is probably not the right path forward, some mediated version will likely create more fairness and economic opportunities. And though some argue that America is past its manufacturing prime, there is an argument to be made that the future of manufacturing, especially with robotics and AI, could chart a very different course.
The story of America has never been one of perfect fairness. But it has, in its best moments, been a deeply special place of opportunities and achieving dreams. We know this, at least in part, because of America's immigration story. The U.S. has significantly outpaced any other country as the desired place for immigrants. Generations have arrived in pursuit of the American dream.
Preserving the spirit of this American ethos does need thoughtful and compassionate solutions that provide more access to the means of attaining wealth. However, doing so is essential for more fairness and to help heal a divided nation.
Sources:
Board of Governors of the Federal Reserve System. Distribution of Household Wealth in the U.S. since 1989. Federal Reserve, 2023, https://www.federalreserve.gov/releases/z1/dataviz/dfa/distribute/chart/.
Board of Governors of the Federal Reserve System. Survey of Consumer Finances, 2022. Federal Reserve, Oct. 2023, https://www.federalreserve.gov/econres/scfindex.htm.
Desilver, Drew. “For Most U.S. Workers, Real Wages Have Barely Budged for Decades.” Pew Research Center, 7 Aug. 2018, https://www.pewresearch.org/short-reads/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/.
Gallup. “More Than 750 Million Worldwide Would Migrate If They Could.” Gallup News, 8 Dec. 2021, https://news.gallup.com/poll/245255/750-million-worldwide-migrate.aspx.
Muro, Mark, et al. Automation and Artificial Intelligence: How Machines Are Affecting People and Places. Brookings Institution, Jan. 2019, https://www.brookings.edu/research/automation-and-artificial-intelligence-how-machines-affect-people-and-places/.
Survey of Consumer Finances (SCF) Chart: Stock Holdings, Percent Holding (%), 1989‑2022.” Board of Governors of the Federal Reserve System, last updated 2 Nov. 2023, https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#series:Stock_Holdings;demographic:all;population:all;units:have. Accessed 20 Apr. 2025.
U.S. Bureau of Labor Statistics. Current Employment Statistics: Manufacturing Employment. U.S. Department of Labor, 2023, https://www.bls.gov/ces/.
U.S. Census Bureau. U.S. and World Population Clock. U.S. Department of Commerce, https://www.census.gov/popclock/.
This article gives us a sharp, thoughtful way to look at what’s really breaking America apart. Instead of recycling the same old “left vs. right” arguments, it zeroes in on the deeper problem: money. The numbers alone hit hard, 85% of wealthy families own stocks, compared to just 25% of poorer households, and the richest 10% control 90% of market wealth. But here’s what really sticks: these stats explain why Wall Street’s success feels so disconnected from the struggles of everyday people. The piece connects the dots between lost factory jobs, automation, and shipping work overseas, all of which have destroyed chances for millions to build a stable future. It doesn’t just point fingers; it forces us to ask: What does “progress” even mean if most people get left behind?
The talk about tariffs isn’t about picking political sides. It’s a sign of how broken the system is. And that makes me wonder: If AI and robots take over factories tomorrow, how do we stop history from repeating itself? What if we tried bold ideas, like letting everyday folks own a fair share of stocks, or teaching skills that actually match today’s jobs? The mention of immigration hits home too, it’s not just about ideals, but whether people actually get a shot at the “American Dream.”
But here’s what keeps me up at night: How do we fix local economies without ignoring global trade? Can politicians work together when money itself divides us into warring tribes? This isn’t just a think-piece, it’s a call to action. So let’s cut through the noise: What’s step one? How do we rebuild an economy where success isn’t just for the lucky few, but something we create together? Time to stop talking and start fixing.