June 4, 2025
Just hours after President Donald J. Trump posted on social media yesterday that “[b]ecause of Tariffs, our Economy is BOOMING!” a new report from the Organization for Economic Cooperation and Development (OECD) said the opposite. Founded in 1961, the OECD is a forum in which 38 market-based democracies cooperate to promote sustainable economic growth.
The OECD’s economic outlook reports that economic growth around the globe is slowing because of Trump’s trade war. It projects global growth slowing from 3.3% in 2024 to 2.9% in 2025 and 2026. That economic slowdown is concentrated primarily in the United States, Canada, Mexico, and China.
The OECD predicts that growth in the United States will decline from 2.8% in 2024 to 1.6% in 2025 and 1.5% in 2026.
The nonpartisan Congressional Budget Office (CBO) released two analyses today of Trump’s policies that add more detail to that report. The CBO’s estimate for the effect of Trump’s current tariffs—which are unlikely to stay as they are—is that they will raise inflation and slow economic growth as consumers bear their costs. The CBO says it is hard to anticipate how the tariffs will change purchasing behavior, but it estimates that the tariffs will reduce the deficit by $2.8 trillion over ten years.
Also today, the CBO’s analysis of the Republicans’ “One Big, Beautiful Bill” is that it will add $2.4 trillion to the deficit over the next decade because the $1.2 trillion in spending cuts in the measure do not fully offset the $3.7 trillion in tax cuts for the wealthy and corporations. Republicans have met this CBO score with attacks on the CBO, but its estimate is in keeping with those of a wide range of economists and think tanks.
Taken together, these studies illustrate how Trump’s economic policies are designed to transfer wealth from consumers to the wealthy and corporations. From 1981 to 2021, American policies moved $50 trillion from the bottom 90% of Americans to the top 1%. After Biden stopped that upward transfer, the Trump administration is restarting it again, on steroids.
Just how these policies are affecting Americans is no longer clear, though. Matt Grossman of the Wall Street Journal reported today that economists no longer trust the accuracy of the government’s inflation data. Officials from the Bureau of Labor Statistics, which compiles a huge monthly survey of employment and costs, told economists that staffing shortages and a hiring freeze have forced them to cut back on their research and use less precise methods for figuring out price changes. Grossman reports that the bureau has also cut back on the number of places where it collects data and that the administration has gotten rid of committees of external experts that worked to improve government statistics.
There is more than money at stake in the administration’s policies. The administration's gutting of the government seeks to decimate the modern government that regulates business, provides a basic social safety net, promotes infrastructure, and protects civil rights and to replace it with a government that permits a few wealthy men to rule.
The CBO score for the Republicans’ omnibus bill projects that if it is enacted, 16 million people will lose access to healthcare insurance over the next decade in what is essentially an assault on the Affordable Care Act, also known as Obamacare. The bill also dramatically cuts Supplemental Nutrition Assistance Plan (SNAP) benefits, clean energy credits, aid for student borrowers, benefits for federal workers, and consumer protection services, while requiring the sale of public natural resources.
These cuts continue those the administration has made since Trump took office, many of which fell under the hand of the “Department of Government Efficiency.” But, while billionaire Elon Musk was the figurehead for that group, it appears his main interest was in collecting data. His understudy, Office of Management and Budget director Russell Vought, appears to have determined the direction of the cuts, which did not save money so much as decimate the parts of the government that the authors of Project 2025 wanted to destroy.
Vought was a key author of Project 2025, whose aim is to disrupt and destroy the United States government in order to center a Christian, heteronormative, male-dominated family as the primary element of society. To do so, the plan calls for destroying the administrative state, withdrawing the United States from global affairs, and ending environmental and business regulations.
Yesterday the White House asked Congress to cancel $9.4 billion in already-appropriated spending that the Department of Government Efficiency identified as wasteful, a procedure known as “rescission.” Trump aides say the money funds programs that promote what they consider inappropriate ideologies, including public media networks PBS and NPR; the United States Agency for International Development (USAID), which provides food and basic medical care globally; and PEPFAR, the U.S. President's Emergency Plan for AIDS Relief that was established under President George W. Bush to combat HIV/AIDS in more than 50 countries and is currently credited with saving about 26 million lives.
Vought appeared today before the House Appropriations Committee, where members scolded him for neglecting to provide a budget for the year, which they need to do their jobs. But Vought had plenty to say about the things he is doing. According to ProPublica’s Andy Kroll, he claimed that under Biden “every agency became a tool of the Left.” He said the White House will continue to ask for rescissions, but also noted that, as Project 2025 laid out, he does not believe that the 1974 Impoundment Control Act, which requires the executive branch to spend the money that Congress has appropriated, is constitutional, despite court decisions saying it is.
Representative Rosa DeLauro (D-CT) told Vought: “Be honest, this is never about government efficiency. In fact, an efficient government, a government that capably serves the American people and proves good government is achievable is what you fear the most. You want a government so broken, so dysfunctional, so starved of resources, so full of incompetent political lackeys and bereft of experts and professionals that its departments and agencies cannot feasibly achieve the goals and the missions to which they are lawfully directed. Your goal is privatization, for the biggest companies to have unchecked power, for an economy that does not work for the middle class, for working and vulnerable families. You want the American people to have no one to turn to, but to the billionaires and the corporations this administration has put in charge. Waste, fraud, and abuse are not the targets of this administration. They are your primary objectives.”
The use of the government to impose evangelical beliefs on the country, even at the expense of lives, also appears to be an administration goal. Yesterday, the administration announced it is ending the Biden administration’s 2022 guidance to hospital emergency rooms that accept Medicare—which is virtually all of them—requiring that under the Emergency Medical Treatment and Active Labor Act they must perform an abortion in an emergency if the procedure is necessary to prevent a patient’s organ failure or severe hemorrhaging. The Emergency Medical Treatment and Active Labor Act requires emergency rooms to stabilize patients.
The Trump administration will no longer enforce that policy. Last year, an investigation by the Associated Press found that even when the Biden administration policy was being enforced, dozens of pregnant women, some of whom needed emergency abortions, were turned away from emergency rooms with advice to “let nature take its course.”
Finally tonight, in what seems likely to be an attempt to distract attention from the omnibus bill and all the controversy surrounding it, Trump banned Harvard from hosting foreign students. He also banned nationals from a dozen countries—Afghanistan, Chad, Republic of Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Myanmar, Somalia, Sudan, and Yemen—from entering the United States, an echo of the travel ban of his first term that threw the country into chaos.
Trump justified his travel ban by citing the attack Sunday in Boulder, Colorado, on peaceful demonstrators marching to support Israeli hostages in Gaza. An Egyptian national who had overstayed a tourist visa hurled Molotov cocktails at the marchers, injuring 15 people.
Egypt is not on the list of countries whose nationals Trump has banned from the United States.
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Notes:
https://www.oecd.org/en/topics/sub-issues/economic-surveys/united-states-economic-snapshot.html
https://www.cbo.gov/system/files/2025-06/61389-Tariff-Effects.pdf
https://www.cnbc.com/2025/06/04/trump-tax-bill-debt.html
https://www.nytimes.com/2025/06/04/us/politics/trump-budget-bill-republicans-tax-cuts.html
https://www.cbsnews.com/news/trumps-one-big-beautiful-bill-gop-budget-obamacare/
https://www.nytimes.com/interactive/2025/05/23/upshot/budget-table.html
https://newrepublic.com/article/196092/elon-musk-puppetmaster-russell-vought
https://apnews.com/article/pregnant-women-emergency-room-ectopic-er-edd66276d2f6c412c988051b618fb8f9
https://www.cbsnews.com/news/white-house-asks-congress-claw-back-funding-rescission-package/
https://www.theguardian.com/us-news/2025/jun/04/trump-restricts-harvard-student-visas
https://time.com/5888024/50-trillion-income-inequality-america/
Bluesky:
atrupar.com/post/3lqshetkn6s2t
Saudi Arabia and Qatar aren’t on the list either-curioser and curioser
Thanks professor. We’re in the hands of a professional bancruptor. (Sp. if even a word?) Vought is pure evil. I seriously don’t understand these people. No disrespect to people. Thank you for giving us strength to bear this insanity and to understand the ramifications and hopefully giving us the strength to stand up to it and fight back. Peace and love everybody.