The latest polls are in agreement: 57% of respondents to a recent YouGov/Economist survey disapproved of the president’s handling of major issues, including jobs and the economy (1), and 57% of respondents to a Quinnipiac University poll say the same (2).
This is an opinion certainly shared by Lynn from Missouri, a 31-year-old hairstylist who, as Newsweek reports (3), told Caleb Hammer that she believes President Donald Trump’s return to the White House is the cause of her debt, while speaking to him on a recent episode of his podcast, Financial Audit.
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She explained that she’s $40,000 in debt and her business is suffering as people avoid spending on luxuries, like hair care, while inflation continues to be a concern and the job outlook remains rocky. Her boyfriend is also unable to find work in the construction industry, she noted.
However, Hammer wasn’t interested in backing up her claim, saying she was “overexaggerating the potential impact of what things are like in this exact moment.”
Instead, he points to high interest rates and Lynn’s own career decisions for her situation.
So who really is to blame? Here’s an analysis of the latest data, plus ways small business owners can cope with an uncertain economy and slack consumer spending.
The U.S. economy now
Economic pessimism is running high, in spite of mixed signals that point to both healthy economic growth and potential issues down the line.
The GDP, which decreased by 0.6% in the first quarter of 2025, according to Bureau of Economic Analysis (BEA) data, recovered quickly with growth of 3.8% in the second quarter. Gloomy reports that predicted a recession have turned around, with analysts predicting growth in 2026, but warning that the labor market needs careful scrutiny (4).
The unemployment rate has ticked upward to 4.3% as of August. Personal income decreased 0.4% in May of this year, and disposable income decreased 0.6%, according to the BEA. The cost of living continues to rise, with the Consumer Price Index up 0.3% as of September. Topping it off, credit card debt reached $930 billion across the country, the highest level ever, reports CNBC (5).
Interestingly, a recent Gallup poll showed that only 54% of Americans currently view capitalism favorably (6), the lowest in the history of the firm’s poll.
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President Trump to blame?
“There is a big cohort of people who voted for Donald Trump because they really, sincerely believed that he was going to bring down the price of their daily necessities,” Sen. Brian Schatz, a Democrat from Hawaii, told NBC News in September (7).
“And almost everything is significantly more expensive.”
Tariffs have already increased prices for consumers. And a recent Ipsos poll (8) finds that the majority of Americans believe they will hurt inflation (63%), the economy in general (58%) and their own financial situation (55%).
A January report from Politico (9) investigated the issues with the president’s campaign promise to bring down “the price of everything,” noting that high borrowing costs meant to cool inflation — which has seemed to work — are also having the effect of making it harder for consumers to get ahead, though the Federal Reserve’s steady interest rate is keeping the economy from dipping into recession.
In short, though President Trump makes big promises, the economy is even bigger — and is influenced by a number of factors that are not always within the control of the White House.
How business owners can bounce back
No matter how you feel about the economy, if your business is in a slump, it can be difficult to know how to recover. Here are some tips for readjusting your budget to respond:
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Reinforce your value. Anxiety can cause changes in shopping behavior, reports Forbes (10), but focusing on your consistent customer experience and quality can help ensure your customers feel like your products and services are a good investment.
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Reward loyalty. Trust is a two-way street, so investing in a rewards program or other loyalty perks can keep your existing customers spending at your business.
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Offer transparent pricing. Inflation is on everyone’s mind, so if you’re opting for cheaper materials, your customers will know. Instead, being up front about the higher cost of delivering a good product is more likely to earn your customer’s trust.
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Don’t cut back on marketing. While it may be tempting, you need more customers now, not less. Try reframing your offering as an essential. In Lynn’s case, she might talk about the confidence benefits of a good haircut for a client’s well-being, or their ability to find a new job even.
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Stash your cash. Even businesses need an emergency fund. Review your budget and look for ways to reprioritize your spending to maximize what you can save for the future.
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Join a business improvement district (BID). Forming a community with other small business owners can help you pool resources and information for keeping your customer base.
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Look for government grants. The U.S. Chamber of Commerce offers a list of grants that may be open to you, but don’t forget to check for municipal, county and state-level support.
Finally, you could consider credit. While debt can be a burden, a business loan may help you to fund initiatives to keep shoppers coming, like capital improvements or new lines of business.
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Article sources
YouGov (1); Quinnipiac University (2); Newsweek (3); Morningstar (4); CNBC (5); Gallup (6); NBC News (7); Ipsos (8); Politico (9); Forbes (10)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.