Is this the Golden Age of America?

The data paints a very different picture from the slogan. According to the Congressional Budget Office, U.S. real GDP growth is projected to slow to 1.4% in 2025, down from the stronger pace seen just two years ago. The economy actually contracted by 0.3% in the first quarter, reflecting weaker consumer demand and tighter financial conditions. Meanwhile, the University of Michigan’s Consumer Sentiment Index fell to 50.8 in May 2025 — one of the lowest readings on record — suggesting that households are far from confident about their financial outlook.

Even as inflation cools on paper, living costs remain historically high. The Bureau of Labor Statistics reports core inflation around 2.8%, but the New York Fed finds that households expect food prices to rise 5.5% and rents 8.4% over the next year. Real wages have barely increased since 2020, while consumer debt balances have hit record highs, and delinquencies are climbing. The average American household now spends roughly $12,000 more per year on essentials than before the pandemic.

The chart below — based on official BLS data — shows how costs have shifted over the past two decades. Since 2000, hospital services (+256%), college tuition (+188%), and childcare (+147%) have far outpaced both wages and overall inflation. Essentials like housing (+104%) and food (+99%) nearly doubled, while most household goods stayed flat or declined in price.

Even with low unemployment, the math doesn’t add up for everyday Americans. Housing affordability is near its worst level in decades, grocery costs are up roughly 25% since 2020, and the personal savings rate sits at 3.6%, one of the lowest in history. For millions of families, stability is slipping further out of reach — and the numbers prove it.

If this is the “Golden Age of America,” it’s one built on credit, not comfort.