The Double Squeeze: Wages Up, Costs Higher, and Tariffs Taking More

Most Americans are not in the top 10%. Yet economic policy treats them like they can afford to be.

The Income Reality

Before we talk about tariffs, inflation, and wages, let’s set the scene. The chart below shows the distribution of U.S. household incomes in 2024:

• 29.6% of households earn less than $50,000.

• 29.6% earn between $50,000 and $99,999.

• 17.4% earn between $100,000 and $149,999.

• 14.6% earn between $150,000 and $249,999.

• Only 8.8% earn $250,000 or more.