Investor and television personality Kevin O'Leary sees a tale of two economies right now. On one hand, corporate America is flexing its muscles with stellar earnings and a stock market that keeps climbing. On the other, regular folks are still wincing at the grocery store and the gas pump. That gap, he says, is the real story.

O'Leary: The Economy Is 'Performing on All Cylinders,' But Inflation Lingers

Speaking on Wednesday, O'Leary highlighted the strength in the underlying economy, pointing to what he called an "extraordinary earning season." He said, "There's a huge disconnect between the performance of the underlying economy, whether it be small business or the S&P 500."

That's the good news for President Donald Trump's administration, which could benefit from a booming economy. But O'Leary was quick to add a caveat: the gains haven't trickled down to everyday Americans.

"The bad news is it hasn't translated to Main Street in any city because inflation is still persistent above 3%," he said.

Gas Prices Could Be the Wild Card in the 2026 Midterms

O'Leary didn't stop there. He zeroed in on energy costs as a universal pain point for voters, regardless of political affiliation.

"The number one input cost for every voter everywhere, every state, red or blue, is energy. It's gasoline," he said.

His prescription? Get oil prices below $70 a barrel before November. That, he argued, could be a game-changer in shaping voter sentiment and potentially swinging control of Congress in the midterms.

Trump Faces a Chorus of Inflation Criticism

O'Leary isn't the only one sounding the alarm. Last week, economist Peter Schiff pointed to a July AP-NORC poll showing Trump's approval rating at a dismal 33%. Schiff said the numbers reflect voters' concerns over affordability, not a strong economy. He also noted that approval of Trump's handling of the Iran conflict has slipped.

Sen. Bernie Sanders (I-Vt.) took a different angle, criticizing Trump's spending priorities. He argued that proposed cuts to social programs and tax breaks for the wealthy would hurt working-class families, accusing the administration of favoring billionaires over ordinary Americans.

Sen. Elizabeth Warren (D-Mass.) chimed in earlier, blaming Trump's tariffs for driving up costs on everything from food and housing to gasoline and health care. House Minority Leader Hakeem Jeffries (D-N.Y.) and Gov. JB Pritzker (D-Ill.) have also joined the fray, hammering the administration on inflation and affordability.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.