Groundwork Collaborative

The debate over whether the U.S. economy remains K-shaped (diverging outcomes for high and low earners) or has shifted to a C-shaped (converging outcomes) continues. Treasury Secretary Scott Bessent claims the K-shaped economy is over, citing wage growth for lower earners and moderating housing inflation, while analysts argue data shows limited convergence and persistent inequality.

Tariffs have caused back-to-school product prices to rise by approximately 8% compared to last year, according to research by The Century Foundation and Groundwork Collaborative. The study highlights increased costs for typical school items due to overseas manufacturing and trade policies.

A poll by Groundwork Collaborative and Ipsos reveals a growing class divide over AI's impact, with higher-income workers more likely to expect job improvements. White-collar workers and those earning $100,000+ are more optimistic about AI than lower-income and blue-collar workers, while Black workers are more likely than white workers to fear job replacement. Groundwork’s Alex Jacquez called the findings a 'class divide' and suggested a public stake in AI firms as a potential solution.

President Trump imposed new tariffs on over 80 countries using Section 301 of the Trade Act of 1974, avoiding the legal challenges that previously struck down tariffs under IEEPA. Legal experts are divided, with some arguing the broader precedent for Section 301 strengthens the administration's position, while others highlight concerns about the rushed and expansive nature of the penalties.

School supply prices have increased by 7.7% this year, with parents paying an average of $173.45 for 21 common items. School lunch essentials like blueberries and apple juice have also seen significant price hikes, driven by tariffs and the war on Iran.

School supply and lunch costs have risen significantly, with prices for 21 common school items up 7.7% on average, totaling $173.45 per family. School lunch essentials increased by 11%, adding nearly $4,000 annually. Tariffs and the war on Iran are cited as contributors to rising costs, particularly for imported goods like blueberries.

U.S. parents can expect to spend roughly 11% more per child on school supplies this year, with an increase of close to $4,000 per child. The findings come from research conducted by Groundwork Collaborative and the Century Foundation.

Prices for school supplies and lunch staples have surged by 8% and 11% respectively since 2025, driven by factors like the Iran war and President Donald Trump's tariffs. Groundwork Collaborative and The Century Foundation, using NielsenIQ data, found significant cost increases for items like lunchboxes and paper, with families projected to spend $4,000 annually on supplies and lunches.

President Donald Trump returned from a Chinese state visit to face escalating inflation in the US, with consumer inflation increasing to 3.8% annually in April. The trip occurred as many people are voting in primaries and absorbing rising costs. Democrats see the moment as a political opportunity.

Democrats considering 2028 presidential runs propose significant tax cuts for middle-class Americans and increased taxes on the wealthy, sparking internal debate. The plans include eliminating federal income taxes for low- and middle-income earners while raising taxes on millionaires, with critics calling it politically motivated and fiscally irresponsible.