American Confidence Crashes Despite Booming Economy

The economy’s report card says A+, but everyday Americans are giving it an F. Stocks are soaring, GDP is roaring toward 5.4% growth, and consumers keep spending — yet confidence just crashed to its lowest point since 2014. The disconnect exposes a “K-shaped” economy where gains funnel to the elite few, while the bottom 60% “are treading water,” according to ING’s economics chief.

• The Conference Board’s index shocked analysts by plunging 9.7 points in January — driven by fears of a weakening job market and re-emerging inflation.
• Meanwhile, top earners remained optimistic amid growing home values and fat investment portfolios — confidently spending and single-handedly driving growth.

It gets worse: The collapse comes as fresh layoffs pummel workers at every level. UPSUPS

and NikeNKE

are eliminating 30K and 775 operational jobs, respectively, but the pain is spreading up the ladder. AmazonAMZN

just slashed 16K corporate employees, and PinterestPINS

erased 15% of its workforce. Firms point to AI automation and cost-cutting as justification, but even those confident spenders aren’t safe anymore. If the last economic pillar standing gets toppled, who’s left to keep it afloat?