THERE will be many explanations for the outcome of the US midterm elections. Some will focus on the Iran war, personalities, inflation, tariffs or the divide between Republicans and Democrats.

The explanation that interests me most is more fundamental.

The US economy was hardly in collapse. The stock market had recently reached unp­recedented highs, economic growth remai­n­­ed respectable, unemployment was not a ma­­jor concern, and overall household weal­­th had reached high levels by mid-2026.

Yet consumer sentiment remained close to record lows, and economic pressure and the cost of living were among the strongest motivations in the election.

Growth is no longer enough as a political argument.

There is an important message in that contrast. An economy can generate great wealth without large numbers of people feeling that they are becoming better off.

This does not mean American voters have rejected capitalism. But it may represent another challenge to an idea that has influenced economic policy for decades; create favourable conditions for business, and the benefits will eventually spread through investment, jobs and higher incomes.

We call this trickle-down economics.

There is logic behind part of it.........

© Dawn