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The economy is increasingly on the minds of voters. Swing voters put Trump back in the White House to lower costs and inflation. Instead, what they have gotten so far is an administration that never mentions inflation but has gone of a right-wing jihad against the people’s government and its programs.
The Trump/Musk agenda is hurting the economy, as Mark Zandi from Moody’s posted on X:
The economy appears to be gagging on the uncertainty created by the haphazard economic policymaking happening in DC. Retail sales, manufacturing production, real consumer spending, home sales and most telling, consumer confidence, are all down meaningfully in the past month or two. Real GDP is tracking only 1.2% annualized so far in the first quarter, with a big downward revision this past week, given all the weak data.
The Atlanta Fed’s tracker says GDP is actually set to decline in the quarter unless the economy soon picks up. Tariff wars, DOGE cuts to jobs and government programs and agencies, and deportations are sowing confusion, which puts a pall on investment, hiring and spending.
Even the Fed says it has put interest rate policy on hold until it gets some clarity about where economic policy is going. That may not be for a while as a government shutdown is looming, and another scary Treasury debt limit drama is sure to play out this spring. Lawmakers need to get it together soon, or the economy will go from gagging to choking.
The Trump Slump
Rep. Jimmy Gomez (D-CA) posted above Zandi’s analysis and hung a nickname on the economy that is devastating for Trump, “Trump apologists will blame Biden for the economy, but don’t be fooled. The Trump Slump began when he took office—raising tariffs, firing thousands of federal workers, and canceling grants that employed millions. Where will this downturn end? Who knows.”
The current downturn is being caused by Trump’s erratic governing and terrible policies. Trump and Musk are throwing gasoline on the inflationary fire by getting rid of government workers and cutting off aid to programs.
Trump and Republicans successfully fooled enough voters into believing that government spending was the issue, but government spending and rising wages were the only things keeping this economy from plummeting.
The Trump Slump is here, and it is likely to get worse before it gets better under Donald Trump.
Do you like the nickname the Trump Slump? Will you use it? Share your thoughts in the comments below.
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