Trump’s promises vs. reality
According to the report, the US economy lost 13,000 jobs in June, marking the first monthly job decline since December 2020. Manufacturing and construction sectors were among the hardest hit. This contradicts Trump’s April claim that his tariff policies would “bring back jobs and factories.” Since then, manufacturing has shed 42,000 jobs, while construction jobs have declined by 8,000.
Trump had promised during the 2024 campaign that his administration would take the economy to new heights. However, economic momentum appears to be slowing, with key indicators pointing to declines across multiple sectors.
Inflation on the rise again
One of Trump’s core promises in his second term was to end inflation and halve electricity prices. However, inflation has risen from an annual rate of 2.3% in April to 2.7% in July. Meanwhile, electricity prices have surged by 4.6% this year. The Trump administration’s aggressive tariff policies have forced major companies like Walmart and Procter & Gamble to increase prices, contributing to rising consumer costs.
In response to the poor economic data, Trump blamed Federal Reserve Chair Jerome Powell, claiming that if interest rates had been lowered, more jobs would have been created. However, economists warn that cutting rates too quickly could worsen inflation.
Immigration policies deepen labor shortage
Trump’s tough stance on immigration, particularly his promise to deport undocumented migrants to “protect Black jobs,” appears to be backfiring. The Black unemployment rate has climbed to 7.5%, the highest since October 2021. The White House’s top economic adviser Kevin Hassett attempted to downplay the report, calling the August data “an exception” and claiming that the economy will rebound soon. He also pointed to the Atlanta Federal Reserve’s forecast of 3% quarterly growth.
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