Trump Can’t Run From His Disastrous Economic Agenda

Trump Can’t Run From His Disastrous Economic Agenda

This week, President Trump sought higher ground in an attempt to hide from last week’s string of bad economic data. Despite his best efforts, he could not distract, fire, or post his way out of the alarming unemployment data from the Bureau of Labor Statistics. On Thursday, his new tariffs went into effect, increasing taxes on imports from dozens of countries to the highest level since the Great Depression and raising uncertainty for consumers in the checkout line. Now, Trump is attempting to install a key architect of his disastrous economic agenda as a member of the Federal Reserve Board.

Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez reacted with the following statement:

“After firing BLS Commissioner McEntarfer for doing her job and installing a White House yes-man to serve on the Federal Reserve Board, it’s clearer than ever that President Trump has neither the intention nor the ability to fulfill his promises to lower costs and grow the economy. Every indication shows the economy is stalling due to Trump’s economic policies, and his latest round of erratic tariffs will only exacerbate this weakness. Trump’s second term is rapidly becoming a case study in prioritizing personal gain over prosperity for all.”

Read what Jacquez had to say about Trump’s meltdown in response to bad economic data in MSNBC.

This week in the Trump Slump, new polling and economic indicators continue to show that President Trump’s actions are deeply unpopular and hurting the economy.

Polling and Economic Indicators:

• Polling from The Economist/YouGov reported that 55% of Americans disapprove of Trump’s job as president, and 53% disapprove of his handling of the economy.
• The United States Census Bureau reported June factory orders fell by 4.8% while durable goods orders plunged 9.3% due to a sharp drop in aircraft bookings, and manufacturing remains in a fourth-straight month of contraction.
• According to the Institute for Supply Management (ISM), its nonpurchasing managers index (PMI) slipped to 50.1 in July from 50.8 in June.
• An increasing number of borrowers are falling behind on both their student loans and mortgage payments, according to data from the New York Fed. Over 10% of student loan balances are now over 90 days behind on payments.
• According to new data from the Department of Labor, continuing jobless claims have reached the highest levels since November 2021, with 1.974 million claims filed in July.

Expert Commentary:

• Mark Zandi, Chief Economist at Moody’s Analytics, warned about the growing risk of stagflation: “Growth is slowing. It’s happening, and it’s going to become much more obvious.”
• Polaris CEO Mike Speetzen said of growing consumer uncertainty during the company’s July earnings call: “Consumers are really just reluctant to go spend right now unless they really need to or they’re fortunate enough to have the financial flexibility to do that.”
• Crocs CEO Andrew Rees told investors that the company would reduce orders in the second half of the year, saying: “We see the U.S. consumer behaving cautiously around discretionary spending. They are faced with current and implied future price increases, which we think has the potential to be a further drag on an already choiceful consumer. Against this backdrop, our retail partners are acting more carefully and reducing their open-to-buy dollars in future seasons.”
• Nancy Stokey, Professor of Economics at the University of Chicago, spoke about Trump’s targeted firing of BLS Commissioner Erika McEntarfer: “The US has long had a well-deserved reputation for reliable economics statistics. Unlike China, the old USSR, and other countries where economic data were manipulated for political ends, Trump’s firing of the BLS head can only damage the reputation of the US.”
• CEO of Dynamic Economic Strategy John Silvia wrote on Trump’s tariffs going into effect, levying higher import taxes on several countries: “A less productive economy requires fewer workers. But there is more, the higher tariff prices lower workers’ real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences.”
• Oliver Allen, U.S. Economist at Pantheon Macroeconomics, compared U.S. manufacturing to a person who hasn’t gone to the gym in 30 years: “Getting him to bench press 100 pounds is going to be quite difficult.”
• Beth Hammack, President and CEO of the Federal Reserve Bank of Cleveland, said of rising inflation expectations: “Americans could see inflation tick higher in 2025 as businesses start to pass on the cost of the Trump administration’s tariffs to consumers through price hikes.”
• Groundwork Collaborative’s Executive Director Lindsay Owens reacted to the wave of high-tech pricing schemes across the travel industry: “The travel industry is turning dream vacations into budgeting nightmares for American families. Companies are rolling out new ways to charge customers more, while working people now have to worry not only about affording their vacations, but how to beat the bots while booking them. Our lawmakers need to crack down on these companies’ tricks and protect consumers from unfair, deceptive, and downright illegal pricing practices.”