Record Highs, Everyday Burdens

As of mid-July, 2026, the Dow Jones Industrial Average (DJIA) had risen more than 9% for the year. Many pundits, both financial and political, have touted this rise in the DJIA, an indication that the economy is great and therefore everyone is prospering. Yet in reality, stock ownership is concentrated primarily in upper-income households, and surges in the stock market tend to widen the wealth gap rather than close it or alleviate poverty.

For many middle-class and low-income households, the rising costs of healthcare, childcare, groceries, and utilities have a much greater impact on daily finances than any changes in the DJIA. With incomes remaining static, rising costs chip away at many households’ ability to make ends meet and stay within their budgets. Those at the bottom of the economic ladder face systemic penalties—commonly referred to as “ghetto taxes” or the “poverty premium.” Research suggests that low-income households often face higher costs for food and household necessities because they are less likely to have access to large supermarkets, warehouse clubs, or bulk purchasing opportunities, and may instead rely on smaller retailers that generally charge higher prices.

In addition to the premium on basic household items, the poverty premium often extends to higher prices related to check-chasing, interest rates on loans, higher rents relative to income and late fees, and costs associated with transportation that include maintaining older cars that require frequent repairs or paying more for insurance because of lower credit scores. Moreover, financial setbacks also compound. A missed utility payment can lead to a shutoff fee, which may make it difficult to get to work, resulting in lost income and additional financial strain. These structural barriers associated with poverty are very difficult to escape. The extra costs severely impact the ability to save, invest, or build wealth.

The temptation to use the stock market as a scoreboard for the well-being of the American people should be resisted at all costs. A rising Dow does little for families that have a small portfolio or own no stock at all. Our economy should not be declared healthy because wealth is growing at the top while millions struggle to gain a foothold. True prosperity exists only when economic growth reaches every neighborhood, every family, and every worker.

When the DJIA makes new gains while millions struggle to afford the basics, the question is not whether the market is doing well. The question is whether our economy is working for everyone.