Counting the extended government shutdown as the month-long Guatemalan Round-up Operation began. As a MAJOR result, the public has incredibly soured on now former President Donald Trump. According to recent polls, approximately two-thirds of the American public hold Trump and the Republican Party accountable for the ongoing political crisis. Their particular view of Trump is racist. This misguided perspective only builds upon the error as he plans to make cabinet appointments and agency heads that aren’t qualified for their position.
The current state of the U.S. government reveals a stark reality: it is grappling with a massive deficit. Yet Trump has repeatedly doubled down on his costly, job-killing, controversial tariffs. It’s the decision that the Supreme Court will most closely examine. The court will decide if Trump’s use of emergency powers to create these tariffs was justified.
The economic harm from the government shutdown has already done serious, perhaps unrecoverable, damage to the recently resurgent economy—totaling at least 1.5% in lost GDP. Much uncertainty remains as the Atlanta Federal Reserve girds to issue a new GDP Now estimate. Other analysts have concerns that this estimate could even sink below the last forecast of 3.7%. The economic impact is dire, but all the bad stuff in the system seems to be there for political reasons.
During this tumultuous time, House leadership has been resolute. Instead they are ignoring all calls to hold a legislative session that could break the impasse. Careful observers say that in normal times Trump’s effort to shut down most of the government looks like a strategic move to produce long-term policy dividends. They claim he doesn’t truly want to address the underlying drivers of the crisis.
“Are 42 million Americans really in such danger of suffering malnutrition that the federal government should spend about $100 billion every year to help them feed themselves?” – The Washington Post
Despite the tumultuous political landscape, Trump exhibits street smarts by securing competent legal representation amid his controversies. This strategic move may serve him well as he navigates the complexities of his administration’s policies and ongoing legal challenges.
Our U.S. economy illustrates strong correlation between US dollar index and S&P500. For a few years, these two have been heading in the wrong direction. This tense equation makes the economic picture even more complicated, as growing tariffs may have a significant impact on the increased domestic and international market stability that we need.
Many are rightfully alarmed about Trump’s approach to leadership because he will likely surround himself with dangerous incompetence. His intransigence on tariffs indicates that he is all-in on the economic policy he is pursuing. The greater challenge will be for him to reconcile these positive policies with the backdrop of widespread public dissatisfaction and political unrest.