The Trump Economy: Dive Into The Market Mania, Inflation Anxiety, and Economic Rollercoaster of 2025
By Justin Jest – Gonzo Journalist, Reluctant Realist, Connoisseur of Chaos
The election is over. The dust has settled. The orange sun has risen once again over Washington, D.C., and the American economy has entered its next phase of high-octane, tax-cut-fueled, tariff-laced, deregulation-mad financial warfare.
It’s Trump’s America 2.0, and whether you’re a corporate CEO toasting another windfall, a gig worker clinging to your independent contractor status, or a homebuyer staring at a 7.5% mortgage rate with dead, soulless eyes—this economy is coming for you, one way or another.
Markets. Inflation. Jobs. Housing. The economic battlefield is shifting fast, and if you’re not paying attention, you’re already losing money.
Let’s tear this thing open.
I. Market Reactions: The Stock Market’s Trump Bender
Post-Election Rally: Wall Street’s Favorite Old Man is Back
Trump won. The markets erupted like a firecracker in a meth lab.
- The S&P 500 skyrocketed 2.5% overnight—corporate America licked its lips at the return of deregulation, tax slashes, and good old-fashioned swamp economics.
- The Dow saw its best trading day in two years, as investors dumped any remaining caution in favor of raw, unfiltered greed.
- Bank stocks, industrials, and oil companies threw a party—the Trump machine was back, and the environment was about to be less regulated than a back-alley street fight in Bangkok.
But not everyone was celebrating.
- The Mexican peso got kicked down the stairs, plummeting to a two-year low because the market smelled another Trump trade war coming and panicked accordingly.
- Bond yields spiked—investors saw future inflation creeping in and demanded higher returns for holding U.S. debt.
Tech Stocks and The Great Divide
- Big Tech was sweating bullets. The industry thrived under Trump’s 2017 tax cuts, but his immigration policies and anti-China rhetoric had executives watching closely.
- Tesla soared 70% after the election, riding the hype train to Mars, before crashing 2.8% on Inauguration Day as reality set in.
What’s Next?
Markets love certainty, not stability—and Trump delivers on the first while wrecking the second.
- If tariffs go into effect, expect wild market swings and higher prices.
- If tax cuts are prioritized, the rich will win big, while the nations debt balloons.
🚨 Bottom Line: If you’re an investor, buckle up. If you’re not, don’t look at your 401(k) without a stiff drink in hand.
II. Inflation: It Was Cooling… But Now It’s Creeping Back Like an Obsessed Ex
Inflation was on the decline before the election. It wasn’t quite dead—but it had stopped throwing bricks through your grocery bill.
Then Trump won. And guess what?
🚨 Inflation is back in the gym, lifting weights, getting stronger. 🚨
The Key Problem Areas:
- Gas Prices Surged – Energy costs spiked 2.6% in December alone, led by a 4.4% jump in gasoline because Trump’s pro-fossil-fuel policies signaled a shift away from green energy subsidies.
- Grocery Bills Keep Getting Weirder – Egg prices jumped 50% year-over-year because of avian flu, but at the same time, some produce got cheaper. Welcome to the economic roulette wheel.
- Rent is Still Stupidly High – Prices are up 4–5% year-over-year, meaning your landlord is still winning.
What’s Coming Next?
- Trump’s “America First” trade policies are stirring inflation fears.
- Businesses are preemptively raising prices in anticipation of higher import costs.
🚨 Bottom Line: Inflation isn’t done. And if Trump pulls the tariff trigger, expect price hikes across the board.
III. Jobs & Wages: Welcome to The Gig Economy Hunger Games
Jobs Are Up, But What Kind of Jobs?
- 256,000 new jobs were added in December 2024.
- The unemployment rate dropped to 4.1%.
- Retail, healthcare, and hospitality are booming.
Sounds good, right?
🔴 Hold up. Most of these jobs are low-wage service positions—great for the economy’s job numbers, but not great for workers trying to survive.
Wages Are Rising… But Not Enough
- 3.9% year-over-year wage growth means workers are making more money.
- But if inflation spikes, that extra $4 per $100 of your income won’t go far.
- In a 12% tax rate? Now you get to pay 15%.
Gig Workers and The Muskification of Labor
Trump’s labor policies are tailor-made for people like Elon Musk—a man who hates unions, hates employment laws, and believes workers are infinitely replaceable cogs.
🚨 What’s happening next?
- Regulations protecting freelancers are being scrapped.
- Gig economy workers should brace for fewer protections, less stability, and more exploitation.
🚨 Bottom Line: The job market is growing, but if you’re not in tech, healthcare, or finance, don’t expect real job security.
IV. Housing: Pray for Mortgage Rates to Fall
Buying a House? Prepare for Pain.
- Mortgage rates spiked to 7.13% post-election.
- Home prices are still up 3–4% year-over-year.
- If you don’t already own, you’re in trouble.
The Lock-In Effect: No One is Selling
- Homeowners with low rates won’t sell.
- Inventory is tight, keeping prices high.
🚨 Bottom Line: If rates don’t drop, affordability remains a fantasy for first-time buyers.
V. Consumer & Business Confidence: A Partisan Split
Who’s Feeling Good?
✔️ Republicans are ecstatic.
✔️ Businesses love the tax cut potential.
✔️ Wall Street is riding high.
Who’s Nervous?
❌ Democrats expect another round of wealth inequality.
❌ Economists fear tariffs and inflation.
❌ Homebuyers, gig workers, and renters are not thrilled.
🚨 Bottom Line: If you’re rich, this is your golden age. If you’re not, hope for the best but prepare for pain.
Final Verdict: Trump’s Economy is a Game of High-Stakes Chicken
Markets are hot, inflation is lurking, job growth is solid but unstable, and the housing market is a mess.
What happens next?
- If tariffs take hold, inflation could explode.
- If tax cuts come, debt will balloon.
- If regulations are slashed, corporate America wins, but workers get the short end.
For now, the economy is riding high. But no one knows where this rollercoaster stops.
So buckle up, America.
And if you’re a worker, renter, or small business owner?
Watch your wallet.
