Words & Phrases

Trump’s ‘thriving economy’ is a disaster.

Donald Trump keeps insisting that the economy under his watch is the “greatest” ever, declaring during a trip to Michigan last week that “Michigan is thriving,” and “America is winning like never before.” This is batty.

Last week, two doses of rotten economic news underscored how delusional Trump’s thinking is, and provided evidence that Americans should not expect sunny economic times anytime soon.

First, “Mortgage rates jumped to their highest level in a year, dealing another blow to a long-stalled housing market that shows little sign of recovering,” the Wall Street Journal reported. “The 30-year fixed rate averaged 6.66% this week, up from 6.58% the week prior, according to Freddie Mac. That marked the fourth consecutive week of rising rates, as intensifying conflict in the Middle East pushed up inflation expectations and a divided Federal Reserve sowed doubt about the path of interest rates.”

Trump’s “sock puppet,” Federal Reserve Chairman Ken Warsh, who Trump moved heaven and earth to install (after firing and attempting to prosecute greatly respected former Fed chairman Jerome Powell) to obtain lower interest rates, not only has failed to deliver, but has triggered the opposite effect. Warsh spooked the markets after his appearance at the latest Federal Open Market Committee meeting, when he failed to convince investors that he is serious about fighting inflation.

Once more, Trump’s preference for sycophancy over merit or experience has come back to haunt him. “The verdict from one of the most closely read Fed watchers in the business was blunt. ‘Warsh didn’t convey the message clearly or explicitly, and the bond market puked on him,’” Wall Street Journal reporter Jon Hilsenrath wrote. “The evidence sat right there on the screen: the 30-year Treasury yield jumped as much as 14 basis points to nearly 5.23%, its highest level since 2007. A 19-year high, delivered in the hours after the chairman stepped down from the podium.”

Meanwhile, economic growth has slowed under Trump. “Gross domestic product, a broad measure of goods and services, increased just 1.5% for the April-through June period, according to Bureau of Economic Analysis numbers adjusted for seasonality and inflation,” CNBC reported. “Economists surveyed by Dow Jones had been looking for a growth rate of 1.8%, following the 2.1% increase in the first quarter.” Separately, “the personal consumption expenditures price index, which is the Federal Reserve’s primary forecasting gauge, fell a seasonally adjusted 0.1% for the month, putting the annual inflation rate at 3.7%.”

Trump’s pathological narcissism — specifically, his insistence on surrounding himself with mediocre flunkies who refuse to challenge his delusional thinking, paired with his inability to admit error or accept any facts that reflect poorly on him — prevents him from taking any measures to change course. He will never acknowledge that his poor economic policies (exacerbated by his inflation-fueling war) have produced results far worse than his Democratic predecessors. Instead, he doubles down on the very things that create economic pain (tariffs, extending the war); insults voters by insisting their affordability crisis is fictional; and laughably blames former president Joe Biden, who has not been in office for more than 18 months and produced, on average, over 300,000 jobs per month.

No wonder Trump’s approval ratings have fallen off a cliff, hitting new lows in multiple surveys. In poll after poll, voters say Trump is not concerned about the right things. And who can blame them for thinking that Trump is not listening to their concerns, when he spends so much time spinning conspiracy theories about the 2020 election, obsessing over prosecuting enemies, raising prices by implementing new tariffs, making healthcare more expensive, and fixating on an unwinnable forever war that raises fuel prices and accomplishes nothing for the American people?

Republicans, who lack the nerve to challenge Trump’s self-destructive policies, will bear the burden in November of voters’ anger over an economic agenda that has been rubber-stamped. Rather than provide relief to millions who have lost healthcare coverage, or restore SNAP benefits to 4 million Americans (including 1 million children), their toadyism to Trump and the billionaire donor class has prompted them to throw tens of billions at rogue, murderous ICE storm troopers and an unprecedented $1.15 trillion on the Pentagon (which the Senate has blocked for now). As Connecticut Democratic Sen. Chris Murphy put it, “This budget tells you everything you need to know about what the Republican Party really stands for: unlimited taxpayer dollars for war and handouts to billionaires, and not a penny left over to help the American families who can’t afford to buy groceries or fill up their gas tank.”

Trump’s unbridled corruption only heightens the accurate perception that Trump views the presidency as his personal money-making operation, the results for ordinary Americans be damned. In refusing to lift a finger to stop the orgy of self-enrichment, Republicans have aggravated the populist anger bubbling over nationwide.

Recall that the same interplay between economic malpractice and corruption spelled the end of Trump’s pal, former Hungarian prime minister Viktor Orbán earlier this year. As in Hungary, Americans are feeling both poor economic performance and revulsion over self-dealing. Voters understand that Trump is interested in maximizing his wealth (which he has boosted by more than $2B since returning to office), not improving family finances for the American people. By a stunning 49-19 percent margin (the outsized undecided tally likely reflects Republicans too browbeaten to admit their guy is a crook), Americans label Trump “corrupt.” Trump and his right-wing media enablers can no longer conceal the glaring contrast between ordinary Americans’ economic hardship and the unprecedented self-enrichment Trump and his oligarch pals are reaping.

In sum, Trump’s personal economy may be “thriving,” thanks to $2B in ill-gotten gains since returning to office, but Americans are not. Republicans have every reason to fear they will pay a political price for this rotten economic record, unmitigated corruption, misguided priorities, and gross incompetence. And they should. In ceding their constitutional obligations and becoming yes-men for a fetid, corrupt, and thoroughly incompetent president, they have proven themselves unworthy of voters’ trust. Voters’ only recourse will be to throw them out of office en masse in November.