President Donald Trump has continued to describe the U.S. economy as strong, recently telling McDonald’s franchise owners that the nation is in “the golden age of America,” adding that “prices are coming down and all of that stuff,” according to reporting from The Telegraph. But interviews and data cited by The Telegraph show that many American families—especially lower- and middle-income households—are facing growing financial strain.
According to The Telegraph, McDonald’s CEO Chris Kempczinski warned that households “are feeling under a lot of pressure,” with some Americans skipping meals as they try to manage rising costs. Chipotle chief executive Scott Boatwright issued a similar caution, saying that households earning under $100,000 “are under pressure,” The Telegraph reported.
Despite the appearance of economic strength driven by surging artificial intelligence investment and a stock market boom, The Telegraph notes that several key indicators point to trouble beneath the surface. The University of Michigan’s consumer confidence index fell to 50.3 in November—a level close to its all-time low—according to the reporting.
Federal Reserve Governor Christopher Waller called recent large-scale layoff announcements “eye-popping,” warning that the collapse in consumer sentiment may be “a possible harbinger of recession,” The Telegraph reported. More than one million workers were laid off in the first ten months of the year, a 65 percent increase compared to the same period in 2024. Challenger, Gray & Christmas executive Andy Challenger told The Telegraph that the firm expects layoffs to continue rising “through the end of the year and the first quarter,” calling the possibility of a recession “a serious possibility.”
Major employers—including Amazon, UPS, Paramount, Target, and FedEx—have all announced significant job cuts, according to The Telegraph. Waller warned that such losses could create “more acute” economic problems for lower-income households already struggling with debt.
The Telegraph reports that student loan delinquencies over 90 days reached 14.26 percent—the highest on record—while serious auto-loan delinquencies rose to a 15-year high. Defaults in the subprime auto-loan sector climbed to their highest level since at least 1993.
Economist Joe Brusuelas told The Telegraph that “financial stress, down market is my first concern,” particularly given the rapid rise in auto-loan delinquencies.
The Telegraph’s reporting noted that while September showed a modest increase of 119,000 jobs, earlier months were revised downward and unemployment ticked up to 4.4 percent. Goldman Sachs estimated that the economy actually lost 50,000 jobs in October due to government layoffs tied to the Department of Government Efficiency, The Telegraph reported.
Some analysts argue that Trump’s recent immigration crackdown has sharply reduced labor supply, which may distort job-growth signals. According to The Telegraph, Barclays economist Jonathan Miller said the slowdown is not necessarily “something that pulls the overall economy into weakness,” but would normally be concerning if viewed in isolation.
Meanwhile, soaring stock markets powered by AI investment mask deeper weakness. The S&P 500 remains more than 13 percent higher this year, and The Telegraph notes that wealthier households—those with significant stock holdings—feel richer and continue spending. Fitch economist Brian Coulton told The Telegraph that this helps explain “the disconnect between slowing labour income and still decent consumption.”
Yet UBS economist Jonathan Pingle warned, according to The Telegraph, that “a decent chunk of the US economy is in recession,” noting that nearly all current growth is coming from AI investment and high-income spending. Without these factors, GDP would have grown only 0.2 percent instead of 2.1 percent, he said.
He added that if an AI-driven equity bubble bursts, “for the real economy, look out below,” The Telegraph reported.
For Catholic readers reflecting on the Church’s teaching regarding the dignity of work and the moral responsibilities of economic life, The Telegraph’s reporting underscores a troubling divide: a financial system buoyed by technology and markets, and millions of families struggling with layoffs, rising debt, and economic uncertainty. As the country navigates these pressures, the challenge remains to ensure that economic prosperity serves every person—especially the vulnerable.
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