r/economy • u/PrincipleTemporary65 • 16h ago
The economy is at the beginning of a death spiral. The numbers prove it.
To show how uncaring and out of touch Trump and the Republicans are, the Director of the National Economic Council, Kevin Hassett, cited high gas prices as a good thing, saying, “While people have been spending more money at gas stations, they’ve been spending more money on everything else, which means that they’re still very, very optimistic about the state of the economy.”
This incompetent Dodo thinks inflation is a good thing because it forces American families to spend even more money on household necessities.
Face it, thanks to Republican ineptitude and Jackasses like him, when combined with Trump’s flat-out corruption and unconcern about the citizenry, America is becoming a failed nation with families struggling to provide while billionaires wallow in luxury and tell us to ‘Eat cake.’
We are sinking into a morass of poverty, a nation once proud and strong has devolved into a pseud-fascist state whereby the very survival of our families becomes an issue, and Donald Trump’s inaugural address once characterized the state of the nation as “severely troubled, framing the country as suffering from economic and social "carnage", widespread institutional corruption, and a deep crisis of trust in government’ – became a self-fulfilling prophesy.
We are in an economic downward spiral, and the lower a spiral goes the faster it spins until, until..?
See this – Boldface mine:
When asked about the American economy and how it impacts families, Trump said, “I don’t think about American financial situation. I don’t think about anybody.”
About three out of five Americans have changed their grocery lists to stay within budget, as the high cost of living concerns the majority of Americans. Sixty-one percent of Americans across the political spectrum say they’ve made changes to the items they purchase at the grocery store as prices remain high, according to a recent CNN poll
Another 59 percent of those surveyed said they’ve cut back on extras and entertainment, while 44 percent said they significantly reduced how much they drive, 31 percent have put off medical treatments and 27 percent said they’ve taken on a second job just to make ends meet, according to the poll.
Other surveys also yielded similar results, solidifying the economy as one of the biggest concerns amongst Americans — a sign of trouble ahead for President Donald Trump and Republicans as midterm elections loom.
A recent Gallup poll found that only 16 percent of Americans feel the economy is currently excellent or good, while 76 percent believe economic conditions are worsening. Half of the respondents’ said conditions are poor, as the Iran war drives ongoing inflation and causes gas prices to soar
Economic confidence has hit a four-month low, according to Gallup. Meanwhile, gas prices remain high nationwide, sitting at $4.45 a gallon Wednesday, according to AAA.
About eight out of 10 voters across all political parties say the Trump administration is responsible for the price hike, according to polling by Fox News.
Those voters also blamed oil companies, government regulations and the war in Iran for the price hike.
Recent polls have also had troubling results for the president.
Sixty-three percent of Republicans approve of the Trump economy, according to an Associated Press-NORC Center for Public Affairs Research poll released last week. That’s down from roughly 80 percent approval in February, before the war in Iran.
The Poll released last Thursday, just 36 percent of non-MAGA GOP respondents told Fox News they approved of the president’s economic record, while that number was 74 percent for MAGA loyalists.
In May, American consumer confidence fell to an all-time low, according to the University of Michigan's Surveys of Consumers. Meanwhile, wholesale inflation in April climbed to its highest level since 2022, when the country was gripped with pandemic-era price hikes.
The Independent has contacted the White House for comment.
The president has also brushed off consumer concerns tied to the ongoing Iran conflict.
“I don’t think about American financial situation. I don’t think about anybody. I think about one thing: We cannot let Iran have a nuclear weapon."
Trump’s top economic adviser on Thursday argued that Americans’ elevated spending is a sign of the country’s resilience.
“While people have been spending more money at gas stations, they’ve been spending more money on everything else, which means that they’re still very, very optimistic about the state of the economy, and they should be,” Kevin Hassett, the director of the National Economic Council, told Fox Business’ Maria Bartiromo.
And so, despite this disruption, all the momentum that we built with ‘The Big Beautiful Bill’ and AI and everything else is really, you know, is what the main economic story in the U.S. is,” he said. “Think about it: We’ve got a capital spending boom, we’ve got a labor supply boom because of the ‘No Tax on Tips’…you know, [the] stock market is celebrating.”
Bartiromo asked when Americans could expect gas prices to come down in a “meaningful way,” and Hassett replied: “I think this thing can resolve itself much faster than people think,” without providing a clear timeline for when prices would decrease.
read://https_www.msn.com/?
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u/pseudonominom 15h ago
The problem with giving a pass to blatant lies is that now they’re never expected to tell the truth.
(You can extrapolate this into the outright theft, but that’s another problem entirely)
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u/libertarianinus 9h ago
I like to think of 2008, when people that actually know simple math scratch thier heads. Its the feelings and greed that screws up the system.
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u/rigid_encampment 14h ago
hassett saying people are optimistic because theyre spending more is like saying a drowning man is doing great because hes thrashing around a lot the data shows people are cutting groceries and delaying medical care thats not resilience thats desperation
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u/faptastrophe 15h ago
Assuming Kevin Hasset is an idiot who believes what he's saying is a huge mistake.
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u/AlmanorDiscard 13h ago
He's not an idiot, he's saying what Trump and the corporate media ownership want him to say. And he's getting richer while doing it.
The idiots are the ones who listen to him, i.e. MAGA.
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u/quietsauce 10h ago
This mfer isn't telling you what he thinks, he's telling stupid people bullshit for them to repeat to other stupid people.
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u/TonyB2022 14h ago
I heard him say that consumers racking up more credit card debt is a sign of consumer confidence. He is blind to the reality of the common consumer, which is they are having to use their credit cards to make up shortages caused by the cost of living. What an ass!
I'm a fiscal conservative and worry about the mindset of this administration. It definitely isn't fiscally conservative. Which was one of the hallmarks of the old Republican Party.
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u/NegativeYou3758 14h ago
Republicans have never been fiscally conservative. Not sure how this lie ever became reality.
Go look at increases to the national debt over the last thirty years. It should easily disprove this lie that keeps somehow perpetuating.
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u/Extra-Presence3196 13h ago edited 13h ago
It may have started from the 1920s and 30s I believe...and the Repubs just kept messaging.
It definitely began with Eisenhower...
This is just one..there is a recent reddit that shows how early the lie began:
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u/TheBarnacle63 15h ago
The decline in the stock market begins in July
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u/GimmeFunkyButtLoving 14h ago
RemindMe! 6 months
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u/Extra-Presence3196 13h ago edited 13h ago
When the lower portion of the 80% region, of the top 20% slide into the lower bimodal distribution hump of this k-economy, then we will finally see a reaction...because those lower 20%ers will squawk!!
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u/investingtruth 11h ago
The underlying economic data is genuinely concerning independent of partisan framing. Its clear the gap between the market narrative and the lived experience is becoming too wide for even traditional supporters to paper over.
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u/No_Extension_2789 13h ago edited 13h ago
So I ask you this as a fellow American. Which politicians you think or know are actually going to be willing to take the needed actions to help pull us out of this death Spiral. Which contrary to most began well before Trump it already began following 2001 which saw the last federal budget be passed which avoided deficit spending.
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u/Limp_Network_9482 12h ago edited 12h ago
It certainly did begin before Trump, and he has accelerated the car already at high speed heading toward the Grand Canyon. Having sold our freedom to an oligarchy and supporting the best government money can buy while worshiping the health and wealth heresy, we the unwitting have left ourselves with no good options. This is like and addict swirling in the bottom, recovery is going to be painful
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u/No_Extension_2789 11h ago
Aren't Bush, Biden, and Obama also just as responsible as Trump for the current economic situation? My point is Trump is not the only one at fault. I'm just as angry as you at what he has done to put the economy in this position. Thus, should we not be angry at all of our politicians who only propose any form of quantitative restrictions if they are bit in power?
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u/Limp_Network_9482 5h ago
The short answer is no. No one jumped on the gas like Trump 1.0 and Trump 2.0 the tariffs and Iran war are what has doomed us. Save your wrath for the Trumpians
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u/cacacacakatie 5h ago
“Aren’t Bush, Biden, and Obama also just as responsible as Trump for the current economic situation?”
No. I encourage you to research beyond your own “common sense” thinking to evaluate that question more carefully.
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u/DelayBig9726 9h ago
Not to mention that we are funding (10’s of billions of $’s annually) on a genocide of women and children plus killing over 250 journalists in Lebanon, Gaza and the west bank.
Thank you Netanyahu and the I D F. Money that could be going to our education system or boosting Medicaid and Medicare, helping our own school children put food in their stomachs.
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u/dyingbreed6009 14h ago
This administration thinks inflation is a good thing the last administration thinks deflation is a bad thing.. every administration is full of dolts. They are both saying the same thing in different ways... The magic happens when you actually believe there are two sides and one of them has your best interest at heart.
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u/HandshakeOfCO 13h ago
This is toxic thinking. Republicans, especially lately, have been far, far worse overall than democrats. No party is perfect, but saying D’s and R’s are both bad is like saying shoplifting and grand theft auto are both bad. Sure, but one’s clearly worse.
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u/dyingbreed6009 12h ago
Your analogy highlights my point.... From the grocery store you get one opinion and from the car dealership you get another... One isn't worse, it depends on who is judging. But Neither theif cares about who he is stealing from. Saying one is worse should make you ask: Am I the one being fooled?
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u/HandshakeOfCO 7h ago
that's where we differ lol. Some thieves are objectively worse, that's why we have different levels of punishment. It's why you get jail time for stealing a car, but not for stealing bubble gum.
R's are objectively worse, whether you acknowledge it or hand-wave around it, there's hard data.
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u/BizMkr 15h ago
Without question, the nation is facing a period of significant economic challenges. Many voters will hold Republicans and the MAGA movement accountable for the current economic conditions, while others may view responsibility differently. Regardless of one’s political perspective, this moment calls for a greater focus on substantive economic issues rather than partisan infighting over matters that many citizens view as secondary to the challenges affecting their daily lives.
In a democracy, citizens retain both a voice and a vote. The upcoming midterm elections provide an opportunity for voters to express their views on the direction of the country and the performance of elected leaders. Participating in the electoral process and voting with conviction are among the most effective ways to influence public policy and hold public officials accountable.
Strong voter participation and clear election outcomes can help strengthen public confidence in the results and reinforce the legitimacy of the democratic process.
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u/Capricancerous 12h ago
Seems like rote AI slop, bruv
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u/BizMkr 9h ago
You’re entitled to that opinion. Rather than commenting on the style, I’d be interested in hearing your thoughts on the substance of the argument. What specifically do you believe is incorrect?
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u/ClassyBurn 8h ago
Something important to remember is, that’s a long time from now in Trump years. Every single day there is new corruption, there is new grifting, and there are new ways we are being pushed into an AI police state.
What happens between now and then will determine if voting actually happens in the first place, and if those votes can be trusted to represent us.
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u/cacacacakatie 5h ago
It’s disingenuous to comment using AI and pretend they are your own thoughts. At best it’s misguided, and at worst it is bot behavior. Commenting on the AI qualities of your paragraph isn’t quibbling over style, it’s policing for non-human interactions, which is a relevant criticism.
As for the content of your AI-written comment, it reads as if the prompt used was “create an argument that deflects blame for the weakening economy from the Trump administration and shifts the responsibility for fixing it to someone else.” A conversation about the basic civic duty of voting feels almost tangental and DEFINITELY isn’t a substantive argument against assigning partisan blame and honestly seems a little too patently optimistic in an era where extreme gerrymandering is diluting the power of citizen votes
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u/BizMkr 3h ago
I appreciate your reply.
First, whether AI was used to help edit or refine wording is separate from whether the ideas expressed are a writer’s own thoughts. As a retired and accomplished journalist I have no need to defend my writing style or abilities. That said, I take it as a compliment that my writing abilities are equal to that of AI. The views expressed are mine without assistance from any AI tool, and I’m happy to discuss or defend them on their merits.
Second, I wasn’t attempting to deflect responsibility from any political party or administration. My point was that citizens ultimately have limited direct control over economic policy but do have influence through civic participation, including voting and public engagement. That doesn’t absolve elected officials of responsibility for policy outcomes; it simply recognizes that accountability in a democracy is exercised through the electoral process.
As for gerrymandering and other factors that can weaken the impact of individual votes, I agree those are legitimate concerns. Even so, I believe civic participation remains one of the most effective tools available to citizens. We may disagree about its effectiveness, but I don’t think that makes it irrelevant or tangential.
If you believe I’ve mischaracterized the economic situation or the allocation of responsibility, I’m interested in hearing specifically where you think my argument falls short.
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u/JRCat7000 9h ago
This is the 'dismal science'. My Book Keeper has a number of clients, and while they are working and staying busy everyone is slow to pay their bills regardless of the industry. I see it myself. My sales are good but accounts are slow to pay.
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u/optimaleverage 2h ago
2nd jobs. Look it's making people more industrious and incentivizing people to get on the grind and hustle more. 👍 It makes us great again right?
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u/Jolly-Olive6522 45m ago
This is the plan & it’s by design. Destroy the existing lower class. Make the old middle class the new “poors”. Replace workers with AI/Robotics to increase shareholder wealth. We’ve been on this unfortunate journey since the 70s (maybe earlier). I’m sorry to be so pessimistic but it’s reality. What can we do about it? Vote? I always have & always will but I’m starting to lose hope in our future 😪
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u/DonaldDrap3r 13h ago
Okay and? You just cited inflation and a bunch of polls and that means we’re in a downward spiral? Yes things are bad right now, but that doesn’t mean they will be bad forever. The economy goes through ups and downs, and we’re in a particularly bad part of the business cycle.
At some point the re*ard in office will leave and we will fix what he broke, add in guardrails that make sure that doesn’t happen again, and things will get better.
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u/spikey_wombat 48m ago
we will fix what he broke
Will we? The debt is truly massive and there's no political will to enacted controlled austerity. The alternative is Greece and that is a bad path to take. Not sure if I'd call that fixing it either given how bad their depression was.
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u/DonaldDrap3r 13h ago
Actually why did I waste my time replying to this since you’re probably a bot? Why do you link to msn.com at the end of all your posts? Is that the chat gpt source it gives you? Man the internet becomes more dead every day
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u/PrincipleTemporary65 13h ago
Please, MAGA, I'm not a bot. I prefer 'synthetic American'.
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u/DonaldDrap3r 13h ago
What?
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u/HandshakeOfCO 13h ago
He’s fucking with you lol. Enjoy your ban for bot calling. Maybe read the rules next time.
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u/DonaldDrap3r 11h ago
Not banned because this sub is un moderated as you can tell by the constant low effort rEcEssIoN iNcoMiNg!!?!?!? posts
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u/Buckeye_47 14h ago
People have been saying this since 2024… we’re always on the brink of a recession.
Keep saying it, eventually you’ll be right. But until then, you’re just guessing.
The market can remain irrational longer than you can stay solvent.
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u/Character-Office-227 13h ago
It’s felt like a recession since 2024 for the average American with inflation, layoffs, etc
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u/Buckeye_47 13h ago
I get it, but today’s problems are nothing like 2008. Stock market was down 40% and 10 million people lost their homes in a matter of a couple months
I despise the war in Iran causing all this bullshit, but our current reality is still better than what happened to people in 2008.
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u/MossyMollusc 12h ago
Really? Cause my mom as a teacher then and now was doing better in 08
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u/Buckeye_47 12h ago edited 12h ago
Your mom is one person, my sister in law is a 3rd grade teacher and she’s doing just fine… just bought a house in fact at the age of 28 with no help from family. By that logic, our examples cancel out.
2008 was absolutely worse than today
Unemployment 08: 10% Today: 4.3%
Stock market 08: -38% Today: +10%
Home prices 08: -40% Today (unfortunately): +2%
Foreclosures 08: 10 million 2025: 367,000
I don’t know how they measured this, but ‘08, there was a sharp spike of 10,000 suicides attributed to the stressors of the financial crisis of 08. We don’t see that today.
By the way, I’m not defending our current president, I actually despise him. But the numbers are there.
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u/MossyMollusc 10h ago
Less people on her wage then can afford anything in housing right now
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u/Buckeye_47 10h ago
I mean my wife and I make 250/year in a MCOL area and we don’t consider buying a house at all.
No denying some things are out of reach. But we’re very far from 2008 which was a real recession.
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u/JimKrum1 3h ago
Oh please. No wonder you think everything is just “dandy”. You make a quarter of a million a year. You have absolutely no grasp on reality. What concern is it of yours if gas goes up to $6.00 or $7.00 bucks a gallon? None.
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u/Buckeye_47 3h ago
My point isn’t “things are dandy” my point is “this isn’t a recession, 2008 was a recession.”
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u/MossyMollusc 8h ago
What makes this NOT a housing crisis of unafordability from maxed out labor possitions in grocery stores for instance.
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u/Limp_Network_9482 15h ago
When I watched Hassett I thought it had to be an AI joke but no it was Fox Sunday. That was the most tone deaf inept public statement I’ve ever heard.
This is what happens when we hire for ideology and appearance we get Noems Bondis Blanches Heggesths Patels Bessents lutwicjs and asshats…er Hassetts the cabinet of clowns serving king Donald the Dumb