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Economy
Consumer Sentiment Falls to Near-Record Low as Trump Wrecks Hope in US Economy
"Americans are losing faith in the economy because they're losing ground," said one policy expert. "Every day it becomes clearer that President Trump has no real interest in improving the lives of American families."
Nov 07, 2025
Consumer sentiment in the United States has fallen to a near-record low and Americans' view of current economic conditions has deteriorated under President Donald Trump's administration, which is overseeing and contributing to price increases, large-scale layoffs, looming insurance premium hikes, and devastating cuts to food aid.
The University of Michigan's closely watched Surveys of Consumers released updated data on Friday showing that consumer sentiment has fallen over 6% this month compared to October as Americans increasingly fear that the government shutdown will have "potential negative consequences for the economy."
"This month's decline in sentiment was widespread throughout the population, seen across age, income, and political affiliation," said Joanne Hsu, director of the Surveys of Consumers. "One key exception: consumers with the largest tercile of stock holdings posted a notable 11% increase in sentiment, supported by continued strength in stock markets."
The latest consumer sentiment survey posted a reading of 50.3, the second-lowest level since 1978.
The university's "current economic conditions" index, meanwhile, fell to an all-time low of 52.3 in November, down nearly 11% from last month.
"Middle-class and lower-income Americans are scared right now... about the shutdown, high costs, and potentially losing their jobs in the next 12 months," wrote Heather Long, chief economist at Navy Federal Credit Union.
Middle-class and lower-income Americans are scared right now...about the shutdown, high costs and potential losing their jobs in the next 12 months.
Consumer Sentiment fell to the 2nd lowest level ever in the U Michigan Survey of Consumers.
The "current economic conditions"… pic.twitter.com/0XGjf3DhFC
— Heather Long (@byHeatherLong) November 7, 2025
Alex Jacquez, chief of policy and advocacy at the Groundwork Collaborative, said in response to the consumer sentiment data that "Americans are losing faith in the economy because they’re losing ground."
"Every day it becomes clearer that President Trump has no real interest in improving the lives of American families," said Jacquez. "His economic mismanagement has left households buried under record debt and rising prices. It's no surprise consumer sentiment is at its lowest point since 2022, and households are turning to leaders who didn't just learn the word 'affordability.'"
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'As Ugly and Cruel As It Gets': Trump Fights Order to Fully Fund November SNAP Benefits
"Families have already suffered enough, going nearly a week without SNAP," said one campaigner. "They don't deserve all of this whiplash from Republicans over the food they need to survive."
Nov 06, 2025
A federal judge on Thursday ordered President Donald Trump's administration to release full funding for 42 million Americans' Supplemental Nutrition Assistance Program benefits by Friday, but the US Department of Justice swiftly filed an appeal.
"I have never seen an American president so desperate to force children and seniors to go hungry," said Senate Appropriations Committee Vice Chair Patty Murray (D-Wash.). "Donald Trump is appealing a federal court's order requiring him to pay the full SNAP benefits for this month. This is as ugly and cruel as it gets."
Unrig Our Economy campaign director Leor Tal similarly slammed the administration, saying: "Families have already suffered enough, going nearly a week without SNAP. They don't deserve all of this whiplash from Republicans over the food they need to survive."
"Republicans have caused the longest-ever government shutdown by refusing to permanently extend cost-saving healthcare tax credits that millions of Americans rely on to afford health coverage," Tal said. "Now, they are fighting tooth and nail to avoid fully funding SNAP and feeding hungry families and children. Who does that? We need Republicans in Congress to restore full SNAP benefits now, save Americans' healthcare, and end the government shutdown."
Judge John McConnell, appointed to the District of Rhode Island by former President Barack Obama, previously gave the US Department of Agriculture a choice between making a partial payment by emptying a contingency fund or fully covering food stamps with that funding plus money from other sources. The USDA opted for the former, and warned that it could take weeks to get reduced SNAP benefits to recipients, millions of whom would lose the monthly food aid altogether.
Then, on Tuesday, Trump suggested that the administration would not disperse SNAP benefits until congressional Democrats voted to end what has become the longest government shutdown in US history. Although White House Press Secretary Karoline Leavitt later claimed that "the administration is fully complying with the court order" and "the president is referring to future SNAP payments."
That same day, lawyers for the municipalities, nonprofits, and labor groups behind the lawsuit that led to McConnell's initial ruling—one of two SNAP cases currently in the federal court system—filed an emergency request seeking further relief.
On Thursday, McConnell concluded that the USDA's plan ran afoul of his previous directive and issued the new oral ruling. He reportedly said: "Last weekend, SNAP benefits lapsed for the first time in our nation's history. This is a problem that could have and should have been avoided."
"The defendants failed to consider the practical consequences associated with this decision to only partially fund SNAP," the judge declared. "They knew that there would be a long delay in paying partial SNAP payments and failed to consider the harms individuals who rely on those benefits would suffer."
Despite the White House's attempted clarification, McConnell also said that Trump's post "stated his intent to defy the court order."
Before the appeal, the new order was widely celebrated, including by Democracy Forward president and CEO Skye Perryman, whose group is representing the plaintiffs with the Lawyers' Committee for Rhode Island. She said in a statement that "today is a major victory for 42 million people in America."
"The court could not be more clear—the Trump-Vance administration must stop playing politics with people's lives by delaying SNAP payments they are obligated to issue," Perryman continued. "This immoral and unlawful decision by the administration has shamefully delayed SNAP payments, taking food off the table of hungry families."
"We shouldn't have to force the president to care for his citizens, but we will do whatever is necessary to protect people and communities," she added. "We are honored to represent our brave clients and to have secured this major victory for those who deserve better than what this administration has done to them."
US House Agriculture Committee Ranking Member Angie Craig (D-Minn.) also welcomed the order, while ripping Trump and his secretary of agriculture, Brooke Rollins. The congresswoman stressed: "As we've said from the beginning, the Trump administration has the money and the power to fully fund SNAP in November. They chose to ignore the harm caused by their actions and cut benefits instead."
"President Trump and USDA need to do the right thing and comply with the court ruling rather than further delay food assistance from reaching 42 million Americans in need," she argued. "It is truly shocking and demoralizing just how far President Trump and Agriculture Secretary Brooke Rollins have gone to take food out of the mouths of American children, seniors, working parents, veterans, and people with disabilities."
This article was updated after the US Department of Justice appealed Judge John McConnell's latest ruling.
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Despite Costs Soaring Under His Watch, Trump Tries to Jack Mamdani's 'Affordability' Message
Voters aren't buying it. The president's approval rating on prices and inflation, which was at +5 points in January, has fallen to a stunning -33, according to the latest data from The Economist.
Nov 06, 2025
In the wake of a top-to-bottom shellacking of Republicans across the country in Tuesday's elections, President Donald Trump is making a concerted effort to co-opt the "affordability"-focused messaging that catapulted the once-obscure democratic socialist Zohran Mamdani to become New York City's next mayor.
MSNBC columnist Steve Benen notes that before Election Day, Trump had never once uttered the word "affordability" in his more than a decade using Twitter/X. But since Tuesday, it's been all he can talk about.
After Democrats romped in virtually every important race from Virginia to California to New Jersey, the president explained that it was because "they have this new word called affordability" and Republicans "don't talk about it enough."
He followed it by claiming that “2025 Thanksgiving dinner under Trump is 25% lower than 2024 Thanksgiving dinner under [former President Joe] Biden, according to Walmart. My cost are lower than the Democrats on everything, especially oil and gas! So the Democrats ‘affordability’ issue is DEAD! STOP LYING!!!”
He later claimed, completely falsely, that America was nearing "almost $2 for gasoline," and that Republicans "are the ones who've done a great job on affordability... they said we lost an election on affordability. It’s a con job."
Focusing aggressively on the cost of living and blaming his opponents for it being out of control has worked for Trump in the past. Polls from his 2024 reelection showed that inflation and the cost of living were the leading issues under Biden that drove voters away from Democrats and into Trump's camp.
But Mamdani will enter office with the status of an outsider and a slew of untested policy proposals meant to concretely address New York's untenable cost of living, like a freeze on rent hikes, free public transit, and the opening of public grocery stores.
Trump, on the other hand, is nearly a year into his second presidential term, during which he has often downplayed voters' concerns about rising costs, even telling them they'd need to endure "some pain" in order to reap the benefits of his agenda.
Under his watch, and often directly due to his own policy decisions, the crisis of affordability that drove him to the White House has only accelerated, with 2.9% yearly inflation in August, the last month for which there is data due to the government shutdown.
His claims about both grocery and energy prices are both untrue. Energy prices have actually increased by 10% since Trump took office, and the average regular gas price was not nearing $2 per gallon, as Trump claimed, but more than $3 as of Monday.
While high energy costs can be attributed to external factors like increased power demand from artificial intelligence data centers and energy bottlenecks resulting from the war in Ukraine, the New York Times editorial board noted last month that "Trump energy policies are not helping—and will soon make matters worse."
The foremost culprit is his slashing of hundreds of billions of dollars worth of tax credits and investments into renewable energy sources like wind and solar, as well as electric vehicles. As the board explained:
Energy prices are likely to rise the most in states that have not prioritized clean energy, including Kentucky, Missouri, and Oklahoma, experts say. The repeal of the tax credits alone may push electricity prices almost 10% higher than they would be otherwise by 2029, according to National Economic Research Associates, a consulting firm. Gas prices will also increase over the next decade, according to Rhodium Group, a think tank, as consumers who would otherwise have driven electric cars continue using vehicles that burn fossil fuels.
Grocery prices have also spiked by 2.7% since last year, increasing each month except one since he took office. Some of the products that have seen the most dramatic increases are those impacted by Trump's aggressive tariff regime, both because they are frequently imported like coffee or bananas, or commonly exported like beef, and subject to the retaliatory tariffs of countries against which Trump has waged his trade war.
His "mass deportation" agenda, meanwhile, has gutted the nation's agricultural labor force, which is 80% foreign-born, causing supply shortages and, as a result, higher prices for domestic goods.
On the other major plank of Mamdani's affordability agenda, the uncontrolled cost of housing has also been supercharged by Trump's policies. His tariffs have caused the cost of building materials to spike, slowing the rate of housing construction.
And as a record high 22 million renters are considered cost-burdened, meaning they spend over 30% of their income on housing, Trump's 2026 fiscal year budget proposed to slash rental assistance by nearly 43%. In September, ProPublica also obtained two plans from the Department of Housing and Urban Development (HUD) expected to place burdensome new work requirements and time limits on those living in public housing, which could jeopardize assistance for 4 million people.
While Trump has made a sharp pivot toward "affordability" rhetoric, his actions amid the ongoing government shutdown, which has become the longest in US history, have belied that commitment.
Though Trump acknowledged that Tuesday's Election Night drubbing suggested Republicans were "losing" the shutdown, Republicans have insisted they won't come to the table to negotiate to extend the Affordable Care Act tax credits that caused the impasse in the first place.
As a result, Americans are already beginning to see their health insurance premiums skyrocket as the enrollment period for next year begins. And if the GOP refuses to extend the credits, over 22 million Americans are expected to see their premiums more than double on average in 2026, according to KFF.
And contrary to fighting the rising prices of food, the Trump administration has used the shutdown to choke off food assistance to 42 million Americans eligible for the Supplemental Nutritional Assistance Program (SNAP) in defiance of orders from two federal judges.
Under a proposed plan to only partially fund the program, the average SNAP recipient would have their benefits cut by 61%, while millions will lose their benefits for November entirely, according to an analysis by the Center on Budget and Policy Priorities.
According to The Economist, Trump's approval rating has tanked to just 39%, while disapproval is at 58%. It's an all-time low over both his terms as president. By far the sharpest decrease in his approval rating has come on prices and inflation. Where he enjoyed a net +5 rating on the issue at the start of his term, it had utterly collapsed to -33 as of November 2.
"Trump could theoretically fix his political problems if he readjusts his policy framework and focuses on affordability, corporate power, and working with Democrats instead of the establishment GOP," said economic journalist Matt Stoller in a post on social media. "But there's zero chance he does that. He can't. He's George W. Trump."
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Warning Against Taxpayer Bailout for Big Tech, Critics Fume Over OpenAI Execs' Talk of Government Loans
"Big Tech is building a mountain of speculative infrastructure," warned one critic. "Now it wants the US government to prop up the bubble before it bursts."
Nov 06, 2025
Tech giant OpenAI generated significant backlash this week after one of its top executives floated potential loan guarantees from the US government to help fund its massive infrastructure buildout.
In a Wednesday interview with The Wall Street Journal, OpenAI chief financial officer Sarah Friar suggested that the federal government could get involved in infrastructure development for artificial intelligence by offering a "guarantee," which she said could "drop the cost of the financing" and increase the amount of debt her firm could take on.
When asked if she was specifically talking about a "federal backstop for chip investment," she replied, "Exactly."
Hours after the interview, Friar walked back her remarks and insisted that "OpenAI is not seeking a government backstop for our infrastructure commitments," while adding that she was "making the point that American strength in technology will come from building real industrial capacity, which requires the private sector and government playing their part."
Despite Friar's walk-back, OpenAI CEO Sam Altman said during a podcast interview with economist Tyler Cowen that released on Thursday that he believed the government ultimately could be a backstop to the artificial intelligence industry.
"When something gets sufficiently huge... the federal government is kind of the insurer of last resort, as we've seen in various financial crises," he said. "Given the magnitude of what I expect AI's economic impact to look like, I do think the government ends up as the insurer of last resort."
Friar and Altman's remarks about government backstops for OpenAI loans drew the immediate ire of Robert Weissman, co-president of consumer advocacy organization Public Citizen, who expressed concerns that the tech industry may have already opened up talks about loan guarantees with President Donald Trump's administration.
"Given the Trump regime’s eagerness to shower taxpayer subsidies and benefits on favored corporations, it is entirely possible that OpenAI and the White House are concocting a scheme to siphon taxpayer money into OpenAI’s coffers, perhaps with some tribute paid to Trump and his family." Weissman said. "Perhaps not so coincidentally, OpenAI President Greg Brockman was among the attendees at a dinner for donors to Trump’s White House ballroom, though neither he nor OpenAI have been reported to be actual donors."
JB Branch, Public Citizen’s Big Tech accountability advocate, said even suggesting government backstops for OpenAI showed that the company and its executives were "completely out of touch with reality," and he argued it was no coincidence that Friar floated the possibility of federal loan guarantees at a time when many analysts have been questioning whether the AI industry is an unsustainable financial bubble.
"The truth is simple: the AI bubble is swelling, and OpenAI knows it," he said. "Big Tech is building a mountain of speculative infrastructure without real-world demands or proven productivity-enhancing use cases to justify it. Now it wants the US government to prop up the bubble before it bursts. This is an escape plan for an industry that has overpromised and underdelivered."
An MIT Media Lab report found in September that while AI use has doubled in workplaces since 2023, 95% of organizations that have invested in the technology have seen "no measurable return on their investment."
Concerns about an AI bubble intensified earlier this week when investor Michael Burry, who famously made a fortune by short-selling the US housing market ahead of the 2008 financial crisis, revealed that his firm was making bets against Nvidia and Palantir, two of the biggest players in the AI industry.
This has led to some AI industry players to complain that markets and governments are undervaluing their products.
During her Wednesday WSJ interview, for instance, Friar complained that "I don’t think there’s enough exuberance about AI, when I think about the actual practical implications and what it can do for individual."
Nvidia CEO Jensen Huang, meanwhile, told the Financial Times that China was going to beat the US in the race to develop high-powered artificial intelligence because the Chinese government offers more energy subsidies to AI and doesn't put as much regulation on AI development.
Huang also complained that "we need more optimism" about the AI industry in the US.
Investment researcher Ross Hendricks, however, dismissed Huang's warning about China winning the AI battle, and he accused the Nvidia CEO of seeking special government favors.
"This is nothing more than Jensen Huang foaming the runway for a federal AI bailout in coordination with OpenAI's latest plea in the WSJ," he commented in a post on X. "These grifters simply can't be happy making billions from one of the greatest investment manias of all time. They'll do everything possible to loot taxpayers to prevent it from popping."
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