Consumer anxiety in the United States is at its peak. High inflation due to high prices for food, healthcare, housing and energy; high labor and input costs; and high interest rates are a drumbeat in the daily lives of U.S. consumers. With a hyper-focus on economic investment and the business cycle, the role of consumer spending in supporting the economy often takes a back seat. Hobbling consumers with higher prices and less choice—and their effect on lowering spending power—threatens this vital role.
For example, consumer spending in 2026 accounted for a whopping 68% of U.S. GDP. “Consumers” aren’t just you and me. They are businesses too—often smaller ones—that buy labor, materials, and access to distribution to reach customers. Small business activity in the U.S. in 2026 accounts for 43% of GDP.
Yet there is no relief in sight. President Donald Trump’s hollow promises to address “affordability” in the run-up to the 2024 election have morphed into denials that there is a cost of living crisis at all. Moreover, instead of strong antitrust enforcement, the Trump administration has weaponized the laws by interfering in antitrust investigations to advance a political agenda, reward allies, and punish enemies. Consumer anxiety has only increased since 2024. As of June 2026, the University of Michigan’s Consumer Sentiment Index was “very pessimistic”—the lowest level in more than 50 years.
We are awash in proposals to combat the affordability crisis in the U.S. But most fall short. For example, they don’t acknowledge that market power has eroded consumers’ bargaining power and that antitrust enforcement is the major tool for restoring balance. There is also an exclusive focus on bringing down high prices when market power also erodes quality and variety for products and services—henceforth referred to as “choice.” Choice is a major driver of consumer anxiety. This article explains why policies should directly address all of these problems, not an amorphous concept of affordability.
