Trump’s Economy Of Fear Is Destroying The Labor Market

Donald Trump’s on-again, off-again tariff policy has created so much chaos in the economy that businesses are now refusing to hire new workers. This is according to a new report that comes on the heels of an exceptionally terrible job report from ADP last week. If these trends continue, and experts believe they will, we will continue to see a shrinking of the labor market as a direct result of Trump’s stupidity. Ring of Fire’s Farron Cousins explains what’s happening.

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

While Donald Trump is going around the country trying to sell people on the bill, that actually is already passed. So there's no reason to sell people on it. The labor market is of course, crumbling. Now, in just the last five days, we have had three different conflicting jobs reports. We've had the A DP report that shows that in the month of June, we lost 33,000 jobs. We have had the report from the administration that says, aha, no, we gained 144,000 jobs. And then of course we have another jobs report that says 74,000 payroll, uh, jobs were added in the private sector, which is still anemic and way under. So who the knows, right? Like I'm, I'm sorry for the cursing, but honestly, like all of these conflicting jobs reports, it's absolutely ridiculous. Apparently nobody knows the exact number or somebody does. And then all these other groups are trying to muddy the waters, which is most likely the case.

But either way, if you want to know what's really happening in the labor market, thanks to Donald Trump, you ask the business owners. And luckily that is what the Wall Street Journal did because the Wall Street Journal went out there, looked at hiring rates, they actually got into the data and they realize that, wait a minute, we are not creating jobs. We are in fact losing jobs. And the reason is because of Donald Trump's trade war, his tariffs, and what is happening with the tariffs, which all of us doing this have explained many times because this is not new. This is just a continuation of it, is you have businesses out there that do not know from one week to the next what the future is gonna hold because of Donald Trump. He has created fear and uncertainty. Those are the two worst things you can have as a business owner.

Fear about the future and uncertainty about the future. Because you don't know if your materials are gonna increase in price by 50% next week. You don't know if they're gonna drop by 50%. If they're gonna drop, then hey, that's a great time to expand your business. If they're gonna increase, you may have to cut back. But because you don't know which of those or anything in between, it could be you're stale, you're not hiring new people, you're not able to expand your business. And even if your business is doing well and you do think you could still expand right now, businesses are also reporting to the Wall Street Journal that, well, we can't do that because the Fed is keeping interest rates high. And why is the Fed keeping interest rates high? Well, as Jerome Powell told us last week, we have to do that because of the uncertainty created by Donald Trump's trade war. To put it bluntly, all of these economic problems that we are seeing that are businesses are experiencing, it's all directly related to Donald Trump and his tariffs. Everything goes

Back to that. That is the golden thread that links all of this together. Donald Trump's stupidity, his trade war with no real goals, certainly no actual trade deals, just a set of angry posts on truth social that somehow is now dictating our economic policy. And it's killing businesses and businesses are complaining. But I find that kind of funny. And here's why. About two years ago, right here on Ring of Fire, pap and I were talking about a report that came out that business leaders were unhappy because the unemployment rate was so low. And when the unemployment rate is low, you have fewer applicants for each job. And because of that, the applicants have more power because they know what are you gonna do company?