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Author Topic: Is the U.S. Now Two Economies?  (Read 155 times)
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July 06, 2025, 08:19:07 PM
 #1

The U.S. economy is splitting in half. The big cities such as New York, San Francisco and Seattle are making most of the cash and generating all the new jobs. However, numerous smaller towns and rural states are left behind. People are stagnating in their jobs, debts are increasing and the only thing that increases is stress. The economy is now viewed entirely different by the U.S. people based on which side they are on or even which party they support. Sometimes a good news report on jobs or prices is just ignored if it does not fit their politics

This split is not only in feelings. Big cities run on tech, finance, and new ideas. The countryside relies on agriculture, industry and government assistance. New policies (such as new tariffs and tax cuts) tend to harm the very people they are supposed to benefit. For example, many Red states actually depend more on federal money, and new tariffs made farm exports drop while prices in stores went up

What is the importance of this? The cracks are becoming deeper. Things may go bad quickly if small banks fail, or the government support declines. When the economy in the U.S sneezes, the world catches a cold. The dollar losing trust would make Bitcoin and crypto even more interesting

Despite all this, a lot of people remain optimistic, or at least continue to struggle. Individuals are relocating to new towns, acquiring new talents, or resorting to crypto and side hustles to live a better life. Sometimes, politics makes us fight, but the real battle is for a future where everyone has a chance

 
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July 06, 2025, 11:40:46 PM
 #2

What is the importance of this? The cracks are becoming deeper. Things may go bad quickly if small banks fail, or the government support declines. When the economy in the U.S sneezes, the world catches a cold. The dollar losing trust would make Bitcoin and crypto even more interesting

Despite all this, a lot of people remain optimistic, or at least continue to struggle. Individuals are relocating to new towns, acquiring new talents, or resorting to crypto and side hustles to live a better life. Sometimes, politics makes us fight, but the real battle is for a future where everyone has a chance
Determining the timeframe is very important in this approach. Has this always been the case, or is it a result of the new policies led by Trump administration? The answer to this question is specific and can provide answers to all your other questions.
It is assumed that dividing the American economy into two halves will turn them into two opposing fronts, because a unified economy cannot be managed with two different policies. However, what has saved the American economy so far is the nature of the federal system, which gives each state the authority to manage its own affairs and internal systems. However, this may not last long if Trump continues with his policies, which lead to further division.



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July 07, 2025, 04:52:12 PM
 #3

This is not just US problem but a global problem. Villages and Small towns are dying because of lack of human resource and competitiveness compared to large corporate farming and business.
The whole world is into a long term recession and we don't know if we'll ever get out of it. The demand is dwindling but the prices are increasing. People are scared to start a new industry or business. Only the large and industrial cities are flourishing. With agriculture and all type of business being handled by large corporations, there are very few business normal people can do to survive. Amazon killed the retailers now the involvement of corporation in production and distribution would kill farmers.
The largest problem is population decline and we should learn to live with this.

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July 07, 2025, 05:26:27 PM
 #4

What is the importance of this? The cracks are becoming deeper. Things may go bad quickly if small banks fail, or the government support declines. When the economy in the U.S sneezes, the world catches a cold. The dollar losing trust would make Bitcoin and crypto even more interesting

Despite all this, a lot of people remain optimistic, or at least continue to struggle. Individuals are relocating to new towns, acquiring new talents, or resorting to crypto and side hustles to live a better life. Sometimes, politics makes us fight, but the real battle is for a future where everyone has a chance
Determining the timeframe is very important in this approach. Has this always been the case, or is it a result of the new policies led by Trump administration? The answer to this question is specific and can provide answers to all your other questions.
It is assumed that dividing the American economy into two halves will turn them into two opposing fronts, because a unified economy cannot be managed with two different policies. However, what has saved the American economy so far is the nature of the federal system, which gives each state the authority to manage its own affairs and internal systems. However, this may not last long if Trump continues with his policies, which lead to further division.
Totally agree, we cannot blame everything on headlines. The “two Americas” story started way before Trump. If you look back, the tech boom built huge wealth in cities while old factory and farm jobs faded out. Some say this split has been growing for decades. Trump just made the divide more visible, maybe even faster and sharper.

The federal system is what keeps the engine running, even when the states feel like rivals. Local control is the safety valve. But, like you said, if national policy keeps fueling the split (by picking winners and losers between states or sectors) maybe that safety valve stops working.

Maybe the real risk inot just division, but a system where local solutions aren't enough to fix national-level shocks. That's when the real trouble could start. Or maybe, the local strength is what lets America adapt and keep surprising everyone.

 
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July 07, 2025, 07:04:43 PM
 #5

All you said is the situation globally in the present world and not just in the United States alone. Economy has been declining, jobs reducing and people's hardship has grown.
This were better in 80's and with time the decline has been severe.
You mentioned some big cities, many people who hasn't experienced those cities would think things are rosey their but the problem is also strong there if not stronger

City like New york is plagued with high rate of homelessness, people can barely cope in that City because of high cost of everything, renting a place for business also comes with ridiculous fee, I would rather stay in Atlanta than New york because cost of living is lower there and also opportunities abound there too.

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July 07, 2025, 11:57:09 PM
 #6

Its been two tier for a while because of government division and centralization.   This is related to inflation and new money, problem being government has infinite money for its own spending money not earnt but in effect taken from all dollar holders.
   The further you are from DC and the FED the greater your losses to inflation, those closest benefit largely which is the government serving its own debt and the ongoing multi decade deficit to the federal budget.

That's the simplest way to split the economy, those close to the political economy and those who are not suffering higher costs without the easy money supply.

 
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July 08, 2025, 12:54:05 AM
 #7

The U.S. economy is splitting in half. The big cities such as New York, San Francisco and Seattle are making most of the cash and generating all the new jobs. However, numerous smaller towns and rural states are left behind. People are stagnating in their jobs, debts are increasing and the only thing that increases is stress. The economy is now viewed entirely different by the U.S. people based on which side they are on or even which party they support. Sometimes a good news report on jobs or prices is just ignored if it does not fit their politics

This split is not only in feelings. Big cities run on tech, finance, and new ideas. The countryside relies on agriculture, industry and government assistance. New policies (such as new tariffs and tax cuts) tend to harm the very people they are supposed to benefit. For example, many Red states actually depend more on federal money, and new tariffs made farm exports drop while prices in stores went up

What is the importance of this? The cracks are becoming deeper. Things may go bad quickly if small banks fail, or the government support declines. When the economy in the U.S sneezes, the world catches a cold. The dollar losing trust would make Bitcoin and crypto even more interesting

Despite all this, a lot of people remain optimistic, or at least continue to struggle. Individuals are relocating to new towns, acquiring new talents, or resorting to crypto and side hustles to live a better life. Sometimes, politics makes us fight, but the real battle is for a future where everyone has a chance

it is an idea that is really not correct but has some truth to it.

 huge areas of the USA are suburbs with millions of people in them so the sprawl from a big city stretches for 50 or more mile.

New York City is surrounded or near

Nassau County
Suffolk County
Rockland County
Orange    county
Westchester County all New York counties and over 5 million people in them with some but not a lot of farms

Bergen
Hudon
Essex
Union
Middlesex
Monmouth
Ocean Counties all New Jersey and over 4 million people in them with some but not a lot of farms

FairField
New Haven counties all Connecticut and around 2 million people in them with some but not a lot of farms

I would guess 20-22 million people are there and a lot have New York City jobs.

I mention this area because I like it and I know it.

I can tell you I make all my money via the internet and I am over 60 miles from Manhattan in Howell, NJ

I have quite a few friends that have Internet jobs.

If you wrote this in 2005 it was more true.  as jobs in the burbs sucked you had to be in NYC to get paid well.

I would say there are three groups a solar system with the city being like a sun and close by counties are  like planets.

that is two.

and deep space is the true large rural areas.  Some towns have meat plants that are 200,000 square feet and people in the town work there.  they are far more rural with empty areas and not many jobs to find.


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July 08, 2025, 03:04:58 AM
 #8

is this not normal in almost all countries? there would be always cities that are far developed and progressive of course it also depends on the local government in the particular city like how the mayor runs it

in my country there are cities in which citizens are treated better than in other parts of the country

some cities are gonna be richer than the others
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July 08, 2025, 06:46:05 PM
 #9

The U.S. economy is splitting in half. The big cities such as New York, San Francisco and Seattle are making most of the cash and generating all the new jobs. However, numerous smaller towns and rural states are left behind. People are stagnating in their jobs, debts are increasing and the only thing that increases is stress. The economy is now viewed entirely different by the U.S. people based on which side they are on or even which party they support. Sometimes a good news report on jobs or prices is just ignored if it does not fit their politics

This is the same in my country. Many people who live in rural areas are migrating to cities where there are more job opportunities. Most of the big firms are concentrated in the urban areas, and this has caused a high rate of unemployment in the outskirts. This has contributed to the widening of the gap between the poor and the rich.

Despite all this, a lot of people remain optimistic, or at least continue to struggle. Individuals are relocating to new towns, acquiring new talents, or resorting to crypto and side hustles to live a better life. Sometimes, politics makes us fight, but the real battle is for a future where everyone has a chance

We have to always have hope that things will get better. But I am afraid it's not because inflation has not reduced and people are going deeper into debt. This rural urban drift has its own consequences. It has increased pollution, crime rate, and placed pressure on infrastructure. It has also reduced agricultural production since there are fewer workers..

R


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July 08, 2025, 11:24:48 PM
 #10

I think USA cities are not in the worst condition because many people of cities are rich and they are producing jobs and big infrastructure is made by big business owners. They are making best businesses to give besr services and they are growing and these cities are growing due to these people because they are free to take money from government and banks and banks admit that they will pay money on time because they are watching their projects.  USA is big economic power and it should be economic power but many countries want to cross this and USA will take steps against them and USA is one economy power not 2 economic power.USA has many cities which are developed and in future there will be more advancement.

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July 08, 2025, 11:37:21 PM
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"Things may go bad quickly if small banks fail, or the government support declines..."

Federal government support declining for people who actually need help recently became certain. They are cutting SNAP food benefits so much that there are predictions of large job losses in the supermarket sector, and local food banks will be overwhelmed.
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July 09, 2025, 10:56:33 AM
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All you said is the situation globally in the present world and not just in the United States alone. Economy has been declining, jobs reducing and people's hardship has grown.
This were better in 80's and with time the decline has been severe.
You mentioned some big cities, many people who hasn't experienced those cities would think things are rosey their but the problem is also strong there if not stronger

City like New york is plagued with high rate of homelessness, people can barely cope in that City because of high cost of everything, renting a place for business also comes with ridiculous fee, I would rather stay in Atlanta than New york because cost of living is lower there and also opportunities abound there too.
Everywhere in the world, people think life was simpler one or two generations ago, and the gap between the cost of things and the income of people continues to widen. And I agree, the outside view believes that everyone in New York or London is doing well, but the struggle there is sometimes just as real, if not even harder. High rent, intense competition, and pressure just to keep up make life very stressful to many. Homelessness then becomes something you see every day

Your example of Atlanta break the myth that our chocies lie between mega-cities and small towns. Sometimes mid-size cities or new growth areas provide people with more breathing room, more employment, or a better balance. So, the true lesson is that there is no ideal place anymore. Every city or area has its issues and its own methods that people attempt to get by


Its been two tier for a while because of government division and centralization.   This is related to inflation and new money, problem being government has infinite money for its own spending money not earnt but in effect taken from all dollar holders.
   The further you are from DC and the FED the greater your losses to inflation, those closest benefit largely which is the government serving its own debt and the ongoing multi decade deficit to the federal budget.

That's the simplest way to split the economy, those close to the political economy and those who are not suffering higher costs without the easy money supply.
When new money gets printed, it does seem like the first people to touch it (government, big contractors, financial centers) get a real advantage, while everyone else pays the higher prices down the line. That invisible gap between who gets the “easy money” first and who just gets more expensive groceries or rent is a split most people feel but cannot always name. Whats crazy is how this two-tier effect repeats, locally, nationally, and even globally. It is not just about being in New York or Iowa, but being inside or outside the big flows of government and finance. Is there actually any way for regular people to “move closer” to those flows, or is the game always rigged from the start?


Thank you for sharing your firsthand view

There is no substitute for someone living in the area to give real context. You make a really important point: when people talk about “city vs. rural”, they often skip over the huge middle ground, which is actually where millions of Americans live

That three-way setup you described actually gives the conversation much more detail. There is a whole layer of suburbs and mid-sized towns, and a lot of those places have changed a lot over the last 10-20 years. With internet jobs, remote work, and people commuting, the old boundaries do not work like they used to. In some ways, suburbs are now their own kind of economy; connected to the city, but with a life and job market of their own

It is true that in the past, if you wanted a good job, you had to be right in the city. Now, as you said, a lot of people are earning from home, or doing jobs that did not even exist back then. But at the same time, there are still big differences between these “planets” near the city and the “deep space” rural towns where factories or meat plants are one of the few big employers left

 
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