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The biggest problem facing the U.S. economy
Robert Reich | Substack • • business
Key Points:
- The U.S. added 162,000 jobs in August, exceeding expectations despite recent slow job growth, but monthly jobs reports are increasingly unreliable due to labor market disruptions from mass deportations and retiring baby boomers.
- Wage growth is lagging behind inflation, with hourly earnings rising 3.1% year-over-year while prices increased 3.4%, leading to declining real incomes for most Americans amid an affordability crisis.
- The labor market shows stagnation, with low hiring and firing rates limiting opportunities for advancement and making it difficult for young people to enter the workforce.
- President Trump's economic policies, including costly tariffs, threats of embargoes based on trade deficits, and pressure on the Federal Reserve to lower interest rates, are destabilizing the economy and raising concerns about his decision-making.
- The author criticizes Trump's economic advisors and warns that his actions pose the biggest threat to the U.S. economy's health and future growth.
