Donald Trump has officially begun a new term as President of the United States after a contentious return to power. Amid ongoing political polarization, his administration inherits a nation grappling with economic resilience, global reputational concerns, and structural social challenges. Despite some positive trends, indicators suggest unresolved problems that could define the next four years.
A Strong Economy, Yet Persistent Struggles
Inflation, while under control compared to its peak of 9.1% in June 2022, remains above the Federal Reserve’s 2% target, with a rate of 2.9% in December 2024. This relative improvement has not translated into widespread relief for consumers. Staples such as eggs and milk remain costly, with the average price of a dozen eggs at $4.15 and a gallon of milk at $4.10, reflecting ongoing cost-of-living pressures.
On unemployment, the U.S. enjoys a historically low rate of 4.1%, near what experts consider “full employment.” The economic recovery from the pandemic appears stable, yet wages continue to stagnate. Meanwhile, housing affordability has deteriorated, with the average 30-year fixed mortgage rate reaching 7% in January 2025, a significant increase from the historic lows of 2021.
Key economic indicators as of January 2025:
| Indicator | Value | Trend |
|---|---|---|
| Inflation rate (December) | 2.9% | Down from 9.1% (2022) |
| Unemployment rate | 4.1% | Stable |
| Mortgage rate (30-year) | 7% | Higher than 2021 |
A Divided America on the Global Stage
Despite Trump’s claims, America’s global image hasn’t fully rebounded. According to the Pew Research Center, 54% of international opinions remain favorable toward the U.S., a fragile number considering the decline during Trump’s first term. Trump often insists that “the world is laughing at us,” but the data show it’s primarily his leadership that draws skepticism abroad.
In terms of military and national security, the picture is murky. International conflicts remain intense, particularly in Ukraine and the Middle East, while occasional terrorist incidents highlight latent instability. Meanwhile, Trump continues to make bold promises, such as immediately ending the war in Ukraine, without providing credible solutions.
Populist Promises, Few Concrete Solutions
While Trump is quick to criticize his predecessors, his own proposals raise questions. His plan for broad tariffs on imports could drive inflation higher, while tax cuts for the wealthy are likely to widen social inequalities.
The situation at the southern border, a centerpiece of his rhetoric, shows mixed results. The 47,300 illegal crossings reported in December 2024 are historically low compared to recent years, but Trump continues to claim that “Biden opened the border,” a statement contradicted by the data.
American Democracy Under Strain
The Freedom House Index, which assesses democratic health, recorded a notable decline during Trump’s previous administration, dropping from 86 to 83 out of 100. This reflects concerns about the state of U.S. institutions, exacerbated by Trump’s inflammatory rhetoric about “rigged elections” and his authoritarian tendencies.
Moreover, 79% of Americans report dissatisfaction with the country’s direction, according to Gallup. This statistic highlights a pervasive mistrust that goes beyond economic issues to include broader concerns like housing affordability, racial divisions, and the healthcare system.
A High-Stakes Term for America’s Future
Donald Trump’s return to the White House may deepen the divisions already plaguing the nation. His policies, often focused on short-term optics, risk widening inequality, isolating the U.S. on the world stage, and weakening democratic institutions.
For many Americans, the pressing question remains: Will we be better off four years from now? Judging by the early signs, the answer may be as divided as the country itself.
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