• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns

2

Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'

3

Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access

1

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns

2

Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'

3

Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access
Leadership

Here’s One Campaign Promise Donald Trump Will Find Hard to Keep

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
November 10, 2016, 5:10 AM ET
184088184
Row Houses at SunrisePhotograph by Michal Bryc—Getty Images

Donald Trump’s promise to revive small town America faces a tough challenge in an economy that for decades has been wired to direct income and opportunities towards urban hubs and the better educated.

Little in the president-elect’s so far sketchy economic plans indicates the trend can be reversed any time soon, according to interviews with experts on income inequality and as recent occupational trends.

The manufacturing jobs Trump pledges to bring back have disappeared as much because of automation as the trade deals he has promised to rewrite, and that process will only continue. A promised infrastructure revamp would boost middle wage jobs but for only as long as the programs last, economists point out.

During President Barack Obama’s eight years in office incomes for the best off continued to diverge, despite nearly 10 million new jobs and recent strength in those paying middle-tier wages.

On a pre-tax basis, the share of income to the top fifth of households increased from 50.4% to 51.4% between 2008 and 2015 at the expense of all the others, according to census estimates.

Without the sort of tax and redistribution policies Republicans have traditionally opposed, Trump may struggle to make good on his promise to help those left behind in the global economy, economists who study inequality trends say.

“We have 30 to 40 years to catch up on…Lots of money has gone to the top and to change that is going to be a long and slow process,” said David Madland, a senior fellow at the Center for American Progress, a think tank with close ties to Democratic nominee Hillary Clinton’s campaign.

Trump campaigned promising to shake up a Washington establishment he argued was responsible for destroying middle class jobs with bad trade deals. The message hit home across rural America and mid-sized cities, where voters felt they missed out on the fruits of the seven-year economic recovery that big cities may have enjoyed.

 

Charlotte has been growing fast as a financial hub that attracts college educated talent from around the country, and Democratic nominee Hillary Clinton did better there than Obama did in 2012, handily beating Trump by 137,000 votes.

But in the state’s textile and furniture belt just northwest from here, Trump’s promise of economic renewal and anxieties of a shrinking white majority more than offset Clinton’s urban victory, giving him 76 out of 100 North Carolina’s counties.

The Catawaba County region, one of the nation’s hardest-hit by cheap imports from China, now has a more diverse economy and even the furniture industry has begun adding jobs. But many still live in poverty and rely on disability and social services for support.

“The trade argument was as prominent as any. That is certainly the bet that the Trump campaign has made,” said John Dinan, a political scientist at Wake Forest University.

Taking Out Obamacare

Trump has not highlighted income inequality the way Clinton did, but to help low-wage industries such as textiles or offer a “new deal” for blacks, he would need to tackle the income gap.

Recent data show how hard it may be if Trump relies on economic growth alone: Despite a record jump in household income and a continued surge in middle wage jobs nationally, the effect on income inequality was “statistically insignificant” according to census estimates.

Under Obama, after tax income for the bottom fifth of households did increase by about 18%, or $2,200, according to a recent Council of Economic Advisers study.

But that was made possible by higher taxes on the wealthy, more benefits for the poor and, in large part, by an estimated $1,900 gain from health coverage extended under the Affordable Care Act. Trump has vowed to roll Obamacare back.

Instead, Trump has proposed to strike better trade deals and offered a familiar Republican recipe—tax cuts for businesses meant to spur investment and jobs. He has been ambiguous about a possible increase in the federal minimum wage typically opposed by Republicans, but advocated by many economists as a way to help the disenfranchised workers Trump focused on in his campaign.

Economists say that even if economic growth accelerates under Trump, it may not do much to counter the downward pressures on wages and middle income jobs from automation, technology and other longstanding trends.

Brookings Institution senior fellow Isabel V. Sawhill said researchers on inequality agree on one point: it is hard to move the needle.

“Even when you distribute all of the dividends from growth in a progressive fashion you don’t change things very much,” Sawhill said. “You shift things at the margin.”

About the Author
By Reuters
See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

SpaceX went from three consecutive rocket explosions and near-bankruptcy in 2008 to the biggest IPO in history
Startups & VentureSpaceX
SpaceX went from three consecutive rocket explosions and near-bankruptcy in 2008 to the biggest IPO in history
By Marco Quiroz-GutierrezJune 14, 2026
3 hours ago
A 1% mistake costs $10 billion: Inside the impossible math of managing Elon Musk’s trillionaire SpaceX wealth
Personal FinanceElon Musk
A 1% mistake costs $10 billion: Inside the impossible math of managing Elon Musk’s trillionaire SpaceX wealth
By Sydney LakeJune 14, 2026
4 hours ago
Boomers actually do hold most of the wealth and power. So why do they call it ‘whiny’ to point that out?
Economybaby boomers
Boomers actually do hold most of the wealth and power. So why do they call it ‘whiny’ to point that out?
By Nick LichtenbergJune 14, 2026
4 hours ago
Whop CEO Steven Schwartz
SuccessMillionaires
The Gen Z cofounder of $1.6 billion Whop says his platform has minted over 650 millionaires—he wants to make work fun and money worries obsolete
By Emma BurleighJune 14, 2026
5 hours ago
More and more of Musk’s companies end up under the same roof. Here’s a look at his sprawling empire
C-SuiteElon Musk
More and more of Musk’s companies end up under the same roof. Here’s a look at his sprawling empire
By The Associated PressJune 13, 2026
1 day ago
Melinda French Gates’ advice to new IPO millionaires: ‘Give half your money away’
Startups & VentureMost Powerful Women
Melinda French Gates’ advice to new IPO millionaires: ‘Give half your money away’
By Emma HinchliffeJune 13, 2026
1 day ago

Most Popular

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
Real Estate
Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
By Sydney LakeJune 13, 2026
1 day ago
Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'
Startups & Venture
Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'
By Emma HinchliffeJune 13, 2026
1 day ago
Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access
AI
Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access
By Jeremy KahnJune 13, 2026
1 day ago
SpaceX CFO Bret Johnsen quietly engineered its historic IPO and became an overnight billionaire
C-Suite
SpaceX CFO Bret Johnsen quietly engineered its historic IPO and became an overnight billionaire
By Sasha RogelbergJune 13, 2026
1 day ago
Trump expects to sign a deal with Iran on Sunday, but Tehran may want to avoid giving him a gift on his birthday
Middle East
Trump expects to sign a deal with Iran on Sunday, but Tehran may want to avoid giving him a gift on his birthday
By Jason MaJune 13, 2026
18 hours ago
'It's not a jailbreak' — Research leading to U.S. export restrictions on top Anthropic models was for defense, cybersecurity CEO says
AI
'It's not a jailbreak' — Research leading to U.S. export restrictions on top Anthropic models was for defense, cybersecurity CEO says
By Jason MaJune 13, 2026
21 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.