2025 Is The Year The Wealth Disparity Gets Much Worse' Viral Finance Influencer Explains The Trump Economic Effect

As the United States prepares for the economic shifts accompanying Donald Trump's return to office in 2025, finance influencer Vivian Tu, known as @yourrichbff on TikTok, has sparked a viral conversation about wealth inequality. Her recent video warns, "2025 is the year the wealth disparity gets much worse." But what does this mean, and how might it impact Americans?

A Diverging Economy

Vivian Tu outlines a scenario in which Trump's policies create a "k-shaped divergence" in the economy, a term describing the growing gap between the financial "haves" and "have-nots." Trump's plans to roll back corporate regulations, lower taxes for businesses and impose tariffs are expected to result in "record corporate profits and higher costs of living," according to Tu. This dual effect could exacerbate existing inequalities.

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The Federal Reserve Bank of St. Louis' data provides a stark backdrop to Tu's claims. In the second quarter of 2024, the top 10% of U.S. households held 67% of total wealth, averaging $6.9 million per household. Meanwhile, the bottom 50% held only 2.5%, averaging $51,000. If economic policy continues to favor corporations and higher earners, this gap may widen further.

Tariffs and Their Ripple Effect

Economists at Oxford Economics highlight the potential consequences of Trump's tariff proposals. While intended to boost domestic manufacturing, tariffs often increase the cost of goods for consumers. Chief U.S. Economist Ryan Sweet notes, "There's nowhere to hide from tariffs." Higher prices on imports could disproportionately burden low- and middle-income households already struggling with inflation.

On the other hand, industries like tech and energy may see relaxed regulations, potentially spurring innovation and growth. However, these benefits are unlikely to trickle down to the broader population without targeted measures to address income and wealth disparities.

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Investing: A Path to Weathering the Storm?

Tu emphasizes the importance of individual financial action, stating, "For everyone who lives in the middle, you can decide or at least heavily influence which camp you fall into: have or have not." She advises investing in stocks or index funds to participate in corporate profits. Platforms like robo-advisors make this accessible, even for beginners.

While investing can help individuals build wealth, it's not a guaranteed solution for everyone. Many Americans lack the disposable income needed to invest meaningfully, a hurdle that policymakers must address to foster greater economic equity.

Generational and Racial Wealth Gaps Persist

Data from the St. Louis Fed also reveals significant disparities across demographic lines. Millennials and Gen Z hold less wealth than previous generations did at the same age, while Black and Hispanic families hold only a fraction of the wealth of white families. Educational attainment further divides economic outcomes, with households headed by college graduates far outpacing those with less education.

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Looking Ahead

The economic policies of 2025 will undoubtedly shape the financial landscape for years to come. While deregulation and tax cuts may drive corporate gains, they risk leaving many Americans behind. As Tu's video highlights, understanding these dynamics and taking proactive financial steps – like investing – may help individuals navigate the challenges ahead.

For now, Americans should stay informed about policy changes and their potential impacts. Whether through education, financial planning or advocacy, 2025 offers an opportunity to influence which side of the "k-shape" they fall into.

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