Economists Warn That Trump’s Economic Plan Could Destroy The Working Class

Economists across the board are warning that Donald Trump’s economic plans would result in an absolute disaster for working class Americans. Trump is promising to bring “prices down” immediately, but the only proposal he has for the economy is to increase tariffs on all the goods coming into the country. This would actually RAISE prices on nearly everything that consumers purchase, which would impact low income and working-class Americans the most. But even without the tariffs, economists say that Trump’s plan would lead us to a recession, as Ring of Fire’s Farron Cousins explains.

Subscribe to stay connected to our stories

Support us by becoming a member on YouTube

Or Support us on Patreon

Buy Ring of Fire merch

Find us on social media!

*This transcript was generated by a third-party transcription software company, so please excuse any typos.

Economists across the board are tearing into Donald Trump's economic plan, saying that if Trump's economic plan is enacted the way that Trump says he will do it, which by the way is also impossible for him to do, but they're saying if he were to somehow pull this off, it would lead the economy, not just into a recession, but would decimate low income Americans. And of course, working class Americans. Specifically what they're talking about is a recent, uh, speech where Donald Trump said, quote, prices will come down. You just watch. They'll come down and they'll come down fast. Not only with insurance, with everything. Prices will come down and come down dramatically and come down fast. Oh, so they're gonna come down. They're gonna come down dramatically. They're gonna come down fast. So you basically just said the exact same thing three separate times. In one sentence, you idiot.

But economists are pointing out that that just suddenly bringing prices of everything down would crush the economy. Here's what they say. Justin Wolfer iss, an economist at the University of Michigan, uh, told CNN quote, uh, that Trump isn't trying to slow the rate of inflation by increasing prices at a gradual and possible realistic pace, which is something the Federal Reserve has already been successfully executing over the last two years. What Trump seems to be describing instead is deflation. He says, quote, the way to bring about deflation would be to create a massive recession that would cause businesses to start cutting prices. This is extremely dangerous and feeds on itself. He then explained, first of all, if Americans know that their purchases will be cheaper next month than they will refrain from buying items today, and the consequent widespread price plunges would cause a negative feedback loop, it's very hard to get out of a deflationary spiral.

And let me explain what this means. This rapid deflation would send prices spiraling down, which on the surface, people think like, oh, well that's good. Things are cheaper, not so fast bucko. Because what happens in those situations is that businesses obviously see a cut to their profits. And whenever businesses see a cut to their profits, even if they're still a profitable company, who do they take it out on? The workers, they cut wages, they deny raises, and they engage in mass layoffs because they don't want any of their profit margin to go away. So they will make sure it stays here, even with lower prices. And you do that by cutting expenses. The expenses, of course, are the American workers. So suddenly these workers who get all excited about prices that they can actually afford, find themselves without a job, so even though the prices came down, they still can't afford the goods. And that's where the negative