There was a McDonald’s in my neighborhood that we would drive by often when I was growing up. Each time, I would read about the weekly sale advertised on the marquee underneath the golden arches. Occasionally, I would ask my folks if we could stop at that McDonald’s on the corner. And each time their answer was: “Do you have McDonald’s money?”
There’s a grown-up version of that conversation as well. For the first time in nearly four years, mortgage rates have dropped below 6%. But just how many Americans have home-buying money right now?
Half of us struggle to pay our monthly mortgage or rent, according to a recent survey. More than 80% of prospective buyers said last year that difficulty coming up with a down payment plus closing costs was holding them back.
For folks who can buy a home, the falling mortgage rates are great news: Even just one percentage point can represent tens of thousands of dollars over the life of a mortgage.
However, when nearly a quarter of Americans report living paycheck to paycheck, the recent mortgage rate news only highlights the growing disconnect between America’s economy and its people. It’s like hearing the Dow Jones industrial average has crossed the 50,000-point threshold when the wealthiest 10% of Americans own more than 90% of the stock and nearly half of all private-sector workers don’t have access to an employer-sponsored retirement plan.
Democrats are right to point out the shortcomings of President Trump’s economic policies. But what are the policies they are pushing to address the expanding chasm between the haves and the have-nots? Campaigning on the principles of democracy — free speech, peaceful transfer of power, due process — is a response to what Republicans are doing wrong. But those aren’t the issues that motivated voters and brought Trump back to power.
Trump won his second election in part because he sold a vision of wealth — and the promise of wealth acquisition is also part of the American dream. George Washington, John Hancock, Thomas Jefferson … the founding fathers were among the richest men in the colonies. Yes, the American Revolution was a fight for sovereignty. And that was not all philosophical. The American dream was always a material one, with wealth and ownership as centerpieces.
Modern progressives, especially elected officials in office, do not like to talk about money in that way, but the reality is that protecting democracy requires more than upholding the Constitution. It includes making sure people feel as if democracy is working for them. People will assess that in part by whether it’s hard to get by and whether it’s imaginable to get ahead.
That’s one of the reasons the Biden administration sounded so out of touch when it came to the economy in 2024. Far too often, the pain that the have-nots were experiencing during his time in office would be met with metrics that mostly benefited the haves. Same economy, different impact. Case in point: While grocery prices had soared for four years and inflation-adjusted wages were flat, corporations pulled in a record $4 trillion in profit just in the last quarter of 2024. CNN noted that the top five U.S.-based oil and gas companies pulled in profit of more than $250 billion during the first three years of the Biden administration, an increase of 160% compared with the same period of the first Trump administration.
The U.S. economy was breaking records while simultaneously breaking hearts.
Although Trump campaigned on that disconnect, since returning to the White House his policies have only served to exacerbate the issue. So far more than 90% of the tariffs he imposed have been paid for by U.S. consumers and U.S. businesses. We have rising healthcare costs. Trump’s first year back in office was the worst for job growth in a nonrecession year since 2003.
Trump certainly has a lot to answer for, and his response to Americans’ economic pain has been almost word for word the same as President Biden’s.
All of this means that Democrats have plenty to blame on Republicans during the midterm election campaigning this year. However, from a messaging perspective, Democrats have not wowed anyone with an alternative platform — thus the party’s historically low approval rating. Party leaders continue to talk about the fight for democracy, sounding like law professors consumed by theory. Rallying around key economic policy proposals that will help the work force bring home a bigger paycheck is equally important and demands more of the party’s time.
Trump’s critics need to stay on message regarding his attacks on democracy, and sure voters would like to be choosing candidates based on good governance. But when you can’t save money or see a way to buy a house before turning 40, “good governance” becomes a distant second to having money in your pocket.
The message that will resonate most is the one that makes voters feel that in America, you can still have both.
YouTube: @LZGrandersonShow
Insights
L.A. Times Insights delivers AI-generated analysis on Voices content to offer all points of view. Insights does not appear on any news articles.
Viewpoint
Perspectives
The following AI-generated content is powered by Perplexity. The Los Angeles Times editorial staff does not create or edit the content.
Ideas expressed in the piece
Falling mortgage rates provide meaningful relief only to wealthy Americans while the majority of the country faces persistent economic hardship, as nearly half of all Americans struggle to pay monthly mortgage or rent payments and more than 80% of prospective buyers cannot afford down payments and closing costs[1].
The disconnect between economic metrics and ordinary Americans’ lived experience reflects a fundamental failure of policy, where record corporate profits and stock market gains coincide with stagnant inflation-adjusted wages, rising grocery prices, and widespread financial insecurity affecting nearly a quarter of Americans living paycheck to paycheck[1].
Trump’s economic policies have failed to address wealth inequality despite campaign promises, as tariffs have been paid for primarily by U.S. consumers and businesses while job growth remains the worst in a non-recession year since 2003[1].
Democrats have neglected compelling economic messaging focused on tangible wage increases and wealth-building opportunities, instead emphasizing abstract principles of democracy and governance that fail to resonate with voters facing immediate financial constraints and limited pathways to homeownership.
Economic policy must prioritize making the American dream of wealth acquisition and property ownership achievable for working Americans rather than merely protecting existing democratic institutions, as voters ultimately assess whether democracy works through their ability to afford basic necessities and build wealth.
Different views on the topic
Falling mortgage rates do expand homeownership access beyond the wealthy, with a one percentage point drop in rates capable of enabling approximately 5.5 million additional households to qualify for mortgages, including roughly 1.6 million renters who could become first-time buyers[3].
The housing market is demonstrating genuine improvement with home prices moderating and expected to stall at 0% growth nationally in 2026, while mortgage rates have declined from 6.96% in January 2025 to 6.1% more recently, with buying power increasing approximately $30,000 as a result of lower rates and rising incomes[2][4].
Economic conditions show signs of stabilization and recovery, with improved job growth expected in 2026 and housing market fundamentals showing promise despite recent challenges, suggesting that policy interventions are beginning to produce measurable benefits[5].
While middle-income affordability remains constrained with buyers able to purchase only 21% of available homes, this represents partial progress from pandemic lows and reflects complex supply-side challenges rather than wholesale policy failure[3].
