It is a long road back for the United States economy, which was taken for a ride by the Biden administration. President Trump has done his part to roll back bad policy while also cracking down on fraud and abuse within the government. That, in addition to the many trade deals he has made, has the U.S. economy slowly coming back to life.
The stock market has been setting records recently, with the DOW Jones hitting 50,000 for the first time ever this month. President Trump has even boldly predicted the DOW will hit 100,000 before he leaves office. While that seems a bit outlandish, if his economic resurgence continues on the current path, that prediction might become reality. If that is so, then it could be another version of Reaganomics in present day.
Reaganomics struggled out of the gate in 1980, as President Reagan inherited an inflation rate of around 12-percent, the top income tax rate was 70-percent, and the capital gains rate was 28-percent. Essentially, things were teetering on total fallout. Then by 1984, things took off.
President Trump inherited bad circumstances, though not nearly as bad as Reagan. Trump inherited inflation of around three percent, still well above the Fed target of two percent. It has come down to 2.3-percent.
Economist Stephen Moore on Fox News recently said all of Trump's efforts combined have put him on the verge of a Reagon 2.0 resurgence by 2028.
"You have inflation coming down dramatically over the last few months, heading to the two percent target...gasoline prices, they are down about a dollar compared to last year," he says.
It has not stopped there, though. Egg prices were down 21-percent in December 2025 compared to 2024. The price of bacon has come down, along with multiple other items. President Trump has also taken action trying to make housing more affordable.
All told, he is trying, and succeeding early, in bring back American prosperity.
"One of the most important statistics, if you look at median household income, people right in the middle...their income last year was up about $2,500...that is a lot, that is a gain," says Moore.
If it continues, then the economy will be on stable footing we have not seen in years. But there is a hitch. Perception has not yet caught up to reality, especially on the Republican side.
Democrats will always bash a Trump economy, but plenty of Republicans have yet to totally unify behind Trump's economic efforts. That means he lacks the support he needs in Congress to back his policy. In turn, that means a longer time frame for success. Time though is not something Republicans have in great supply.
Midterms are approaching in November, and it is historically difficult for a sitting majority to keep it in the midterms. Some might say historically impossible. So, if Republicans have any hope of keeping their majority, it starts with that perception catching up to reality.
"The problem for Trump and the Republicans is the mismatch between what is really happening in the economy, and how they feel about it," Moore says.
Moore adds that he thinks perception will catch up and ultimately help the GOP maintain a majority.
Whether or not the catch up is coming remains to be seen. But there is not a lot of time. So, the GOP needs to either wake up and bring this resurgence to life or stand by and watch it be taken down by grudge holding Democrats.
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