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

Trendingnow

1

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

2

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow

1

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

2

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
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
Add Fortune on Google for similar content.

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
Add Fortune on Google for similar content.

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
  • TikTok icon
  • YouTube icon

Latest in Leadership

dario
AIEconomics
Anthropic’s head of economics just explained why Anthropic’s CEO was wrong about a white-collar bloodbath
By Nick LichtenbergJuly 24, 2026
43 minutes ago
lebron
Arts & EntertainmentSports
LeBron James, the only billionaire currently active in the NBA, signs a minimum contract with the Philadelphia 76ers
By Catherina GioinoJuly 24, 2026
3 hours ago
Wealthy man in car
SuccessMillionaires
120 millionaires have signed a letter begging the British government to tax them more: ‘We can afford it’
By Emma BurleighJuly 24, 2026
4 hours ago
This CEO once bought a bankrupt furniture company for $80,000. At 95, he’s now given away millions
Successphilanthropy
This CEO once bought a bankrupt furniture company for $80,000. At 95, he’s now given away millions
By Sydney LakeJuly 24, 2026
4 hours ago
WPP’s sweeping restructure could save £500 million—the bigger challenge might be winning over workers 
C-SuiteWPP
WPP’s sweeping restructure could save £500 million—the bigger challenge might be winning over workers 
By Sam BirchallJuly 24, 2026
4 hours ago
Inside Larry Culp’s playbook for fixing GE
NewslettersCFO Daily
Inside Larry Culp’s playbook for fixing GE
By Sheryl EstradaJuly 24, 2026
7 hours ago

Most Popular

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
Big Tech
Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
By Sydney LakeJuly 23, 2026
1 day ago
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
Economy
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
By Eleanor PringleJuly 24, 2026
12 hours ago
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
Economy
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
By Sasha RogelbergJuly 23, 2026
1 day ago
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
2 days ago
Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”
Personal Finance
Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”
By Joshua HongJuly 23, 2026
1 day ago
Current price of oil as of July 23, 2026
Personal Finance
Current price of oil as of July 23, 2026
By Joseph HostetlerJuly 23, 2026
1 day 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.