pitfalls facing Trump 2.0
Trump Is Inheriting A Worse Economy Than The Last Time He Took Office
From the job market to consumer spending, things are actually worse than the last time Trump took office.
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The Lede
For Trump, this economy looks like a mirror image of the one he inherited in 2017. At the start of his first term, there was plenty of room to grow, and the cyclical momentum was turning up. This time around, the economy is operating at a reasonably strong level, but its momentum is slowing. The labor market is cooling, over half of the world's manufacturing industries are in contraction, and the American consumer is losing steam. Those factors leave the new administration in a tougher position.
Key Details
- The soon-to-be Trump economy is facing down a trio of weak spots. The first is the stumbles of the global manufacturing sector.
- The labor markets are another obvious source of anxiety. The rate at which people are able to find a new job has plunged, which is one reason the median duration of unemployment keeps climbing.
- The final yellow flag in the US economy is real estate. America's housing market cannot operate normally with mortgage rates this high.
