In the USA.
The news as it trends
Recent job data has set off alarm bells for President Trump’s economic strategy. Deregulation and tax cuts may have sparked short-term investment, but economists warn of deeper systemic issues.
Rising inflation, sluggish hiring, and a slowdown in GDP growth suggest economic instability. Tariffs—intended to protect domestic producers—are distorting both aggregate demand and supply.
Consumer participation is dwindling. Firms, which largely control the means of production, are facing higher input costs, shifting the aggregate supply curve left and triggering hiring freezes.
Many Americans are now vocal about skyrocketing prices that limit what everyday consumers can afford. Some industries may benefit from tariff protection, but the larger economy flirts with stagflation—a troubling mix of rising prices, low growth, and weak job creation.
Critics argue that Trump’s tariff policies, which burden American wallets, may serve no one in the long run.
Yetunde B reports for Yeyetunde’s Blog.
Dear Maga.
AS (Aggregate Supply) as you see up here is what businesses make—like burgers, clothes, or phones.
AD (Aggregate Demand) as you see up here is what people buy—how much shopping we all do.
Now come here, imagine this:
🛠️ Businesses (AS) that you see up there are still making things, BUT 👛 prices start rising because it’s costing them more to produce.
There’s a new buzzkill at the party: rising production costs.
Thanks to tariffs and policy changes under Trump’s economic plan, companies are spending more to make stuff.
Whether it’s imported raw materials or higher wages, those costs trickle right into the price tags we see at checkout.
🙅♀️ Shoppers, you, for example, (AD) see those high prices and say, “No thanks!” 😕 You buy less.
Even though companies are trying to sell, but here, fewer people are buying. So… you have
Less shopping = lower AD
Price stays high = tight wallets
GDP (how much stuff the country makes and sells) goes down
Jobs freeze because companies don’t want to hire when nobody’s buying
And that messy mix is called stagflation: 🌀 High prices + Low buying + Fewer jobs = trouble for the economy.
And this is why economists keep saying: No amount of labor statistics, staff shakeups, firing, harassment of staff or political finger-pointing will change the fact that Trump’s tariffs have choked economic growth and job numbers.
And if these tariffs aren’t rolled back soon, they’ll choke the economy even harder.
That’s not making things up—it’s what the numbers say.
Yetunde B reports for Yeyetunde’s Blog.
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