President Donald Trump’s whirlwind of spending restrictions, government layoffs, and tariffs has raised concerns that he may be doing more harm than good to the US economy. The economic policy uncertainty index has risen 41% from January to 334.5, a level that historically denoted a recession. Although it’s unknown how this will turn out, Stanford University economist Nicholas Bloom, who co-developed the uncertainty index, expressed concern.
“I am becoming more and more concerned that we are going to experience what could be referred to as the ‘Trump recession,'” he stated. “A tariff war and ongoing policy instability could send the US economy into its first recession in five years.” Under Trump, the coronavirus outbreak caused the previous recession. Trump claims that any financial hardship caused by import fees is only a “disruption” that will ultimately result in more factories moving to the US and stronger growth, suggesting that he is content with the uncertainty he is creating.
Trump would solidify his image as an unorthodox leader who disproved skeptics if his gamble becomes successful. However, the average American would bear the brunt of the costs if Trump’s tariffs backfired. They might lose their jobs, see their salaries decline, see their inflation rise, and perhaps even experience a weakened sense of national pride.
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