Trump’s ‘On-Again, Off-Again’ Tariffs Damaging US Standing, Says Economist Justin Wolfers As Americans Feel ‘Miserable’ In B-Minus Economy

Leading economist Justin Wolfers from the University of Michigan has delivered a stark assessment of the U.S. economy, assigning it a sobering “B-minus” grade. His warning goes beyond mere numbers, highlighting how the inconsistent trade policies of the Donald Trump administration and a significant decline in consumer confidence are obscuring more profound, underlying systemic vulnerabilities.

A ‘B-Minus’ in a World of Grade Inflation

Speaking on CNN, Wolfers, widely known as the author of the popular Principles of Economics textbook, didn’t pull any punches when discussing the nation’s financial health. While current data might suggest the economy is “not terrible,” Wolfers argues that his B-minus rating is, in fact, quite generous, given what he describes as widespread “grade inflation” in American public discourse.

“The good news is things aren’t terrible. The bad news is things aren’t great,” Wolfers summarized. He pointed to several concerning trends: an unemployment rate that has steadily “drifted up” over the past year, and inflation that stubbornly refuses to fall below the Federal Reserve’s targets. These factors, he explained, are severely squeezing household budgets, despite attempts by some to paint a rosier picture of the economy.

Behind the Numbers: Rising Unemployment and Stubborn Inflation

Wolfers’ analysis digs deeper than headline figures. The upward creep in unemployment indicates a softening labor market, a direct hit to household stability. Meanwhile, persistent inflation acts like a hidden tax, eroding purchasing power and making everyday necessities more expensive for American families. This combination means that even if jobs are available, the cost of living makes it increasingly difficult for many to feel financially secure.

The Lingering Shadow of Inconsistent Trade Policies

While the immediate focus is often on domestic indicators, Wolfers’ broader concern, echoed in the sentiment of the headline, touches upon the impact of inconsistent trade policies. The “on-again, off-again” nature of tariffs and trade negotiations during the Trump administration creates uncertainty, potentially damaging the U.S.’s long-term standing on the global stage and affecting American businesses and consumers alike. Such unpredictability can deter investment, disrupt supply chains, and ultimately contribute to a sense of economic instability that undermines confidence.

A Nation Feeling ‘Miserable’

Ultimately, Wolfers’ B-minus grade encapsulates a sentiment that many Americans seem to be feeling: despite some positive data points, a pervasive sense of economic misery and unease persists. This is fueled by the struggles with inflation, the subtle shifts in the job market, and the overarching uncertainty created by policy fluctuations. It’s a clear call for a more realistic and perhaps less optimistic appraisal of where the U.S. economy truly stands.

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