Archives for category: Economy

There was joy in certain industries last Friday when Trump announced that ICE would stop raiding workplaces. He exempted farms, restaurants, meatpacking plants, and hotels, acknowledging that they needed their employees, and that these immigrants were hardworking and contributed to the economy.

His Agricultural Secretary Brooke Rollins apparently persuaded him.

But by Monday, he reversed course after Stephen miller got to him. TACO. Trump Always Chickens Out.

The Washington Post reported:

Industry and business groups that depend on immigrant workers are scrambling to respond to President Donald Trump’s heightened deportation efforts, after winning a partial reprieve on raids last week that was reversed days later.

The administration on Monday walked back a pause on immigration raids at farms, meatpacking plants, hotels and restaurants, sending renewed shock waves through the broader business community, parts of which are still pushing the White House for relief from workplace raids.

The pause had come after heavy lobbying efforts from farms, hotels and restaurants, as well as the meatpacking, construction, manufacturing, retail, elder care and dairy industries, among others, said Jennie Murray, president of the National Immigration Forum, an advocacy organization that represents Fortune 500 companies on Capitol Hill. Industries have lobbied lawmakers in Congress and White House officials.

“To see such a quick overturn, I think, was disheartening for many. A lot of these business and trade associations that need workforce solutions have been very supportive of the administration,” Murray said. “That’ll be something they continue to be disappointed about for a while.”

The American Farm Bureau Federation, the country’s powerful lobbying group for farmers, expressed “concern” that the policy had been reserved.

“President Trump recently emphasized agriculture faces unique circumstances that warrant a different approach to enforcement practices,” Zippy Duvall, the federation’s president, said in a statement Tuesday.
The policy reversal appeared to take effect immediately. On Tuesday, Immigration and Customs Enforcement agents raided Delta Downs, a horse racing track in Vinton, Louisiana, rounding up nearly 100 equine caretakers, some of whom fled the scene as drones swarmed overhead, according to Eric J. Hamelback, chief executive of the National Horsemen’s Benevolent and Protective Association.

Hamelback said he had been under the impression that horse racing had been included in the administration’s agricultural carve-out. The group estimates that nearly 75 percent of its workforce is foreign-born, mostly from Latin America.


“The only change that we have to make is to get even more aggressive with both the administration and Congress,” Hamelback said, noting that his organization had been lobbying Washington lawmakers and the administration in recent weeks and months — including a meeting with Sen. Mitch McConnell (R-Kentucky) in March.

The pause on workplace raids in agriculture and hospitality went out hours after Trump said in a post Thursday on his social media platform, Truth Social, that he was sympathetic to concerns that executives raised about his deportation plan. Trump wrote last week that “changes are coming” to help “protect our Farmers” from losing workers. However, a White House official told The Washington Post at the time that no actual policy changes were proposed by the White House.

The United Farm Workers union said in a statement that the pause didn’t make a real difference, because immigration sweeps continued to ripple through farmworker communities Friday. UFW President Teresa Romero said that as long as immigration enforcement continues where farmworkers live, “some farmworkers will be detained and deported.”

On Monday, a coalition of dozens of industry groups celebrated last week’s pause in a letter to Homeland Security Secretary Kristi L. Noem and Labor Secretary Lori Chavez-DeRemer.
“We … appreciate Trump’s pledge that ‘changes are coming’ and commitment to issuing policies soon to help stabilize and meet critical workforce needs,” the letter stated. It was signed by construction, retail and health-care industry leaders, including the National Retail Federation and Associated Builders and Contractors, the two groups confirmed to The Post.

The White House’s policy reversal appeared to reflect opposing factions within the administration that have pulled the president in two directions on the issue. White House Deputy Chief of Staff Stephen Miller, an architect of Trump’s aggressive immigration policy, privately opposed carving out exceptions for certain industries that rely heavily on workers without legal status, The Post reported Monday.

Conversely, Brooke Rollins, the agriculture secretary, stressed to Trump the concerns that farming industry leaders have raised about threats to their workforce. More than 40 percent of agriculture laborers are undocumented, according to 2022 estimates by the Agriculture Department.

ProPublica published a searing critique of the medical research that has been cancelled by the Trump administration. The fact that this research has been canceled is not at question; at least some of the cancellations have been reversed (for now) by federal courts.

What’s truly puzzling is why the Trump administration wants to eliminate so much vital research. The U.S. has led the world in biomedical research that has saved countless lives. Why does Trump wants to abandon this vital and beneficent role. Other nations are wooing our top scientists. Why are we terminating their projects?

Some grants were canceled because they dealt explicitly with health and health disparities of nonwhites and LGBT people. A Reagan-appointed federal judge reversed those terminations and said that their purpose was clearly discriminatory.

But what about the search for causes and cures of diseases that affect many populations?

ProPublica posted:

The National Institutes of Health is responsible for more than 80% of the world’s grant investment in biomedical research. Its funding has sparked countless medical breakthroughs — on cancer, diabetes, strokes — and plays a fundamental role in the development of pharmaceutical drugs.

Scientists compete vigorously for a slice of the more than $30 billion that the agency doles out annually; they can spend years assembling grant applications that stretch thousands of pages in hopes of convincing peer reviewers of the promise of their projects. Only 1 in 5 gets chosen.

The NIH has rarely revoked funding once it has been awarded. Out of the tens of thousands of grants overseen by the institution since 2012, it terminated fewer than five for violations of the agency’s terms and conditions.

Then Donald Trump was reelected.

Since his January inauguration, his administration has terminated more than 1,450 grants, withholding more than $750 million in funds; officials have said they are curbing wasteful spending and “unscientific” research. The Department of Government Efficiency gave the agency direction on what to cut and why, ProPublica has previously found, bypassing the NIH’s established review process.

“The decision to terminate certain grants is part of a deliberate effort to ensure taxpayer dollars prioritize high-impact, urgent science,” said Andrew G. Nixon, the director of communications for the Department of Health and Human Services. He did not respond to questions about the terminated grants or how patients may be impacted, but he said, “Many discontinued projects were duplicative or misaligned with NIH’s core mission. NIH remains focused on supporting rigorous biomedical research that delivers real results — not radical ideology.”

Targeted projects, however, were seeking cures for future pandemics, examining the causes of dementia and trying to prevent HIV transmission.

The mass cancellation of grants in response to political policy shifts has no precedent, former and current NIH officials told ProPublica. It threatens the stability of the institution and the scientific enterprise of the nation at large. Hundreds of current and former NIH staffers published a declaration this week — cosigned by thousands of scientists across the world, including more than 20 Nobel laureates — decrying the politicization of science at the agency and urging its director to reinstate the canceled grants. Many researchers have appealed the terminations, and several lawsuits are underway challenging the cuts.

It has been difficult for scientists and journalists to convey the enormity of what has happened these past few months and what it portends for the years and decades to come. News organizations have chronicled cuts to individual projects and sought to quantify the effects of lost spending on broad fields of study. To gain a deeper understanding of the toll, ProPublica reached out to more than 500 researchers, scientists and investigators whose grants were terminated.

More than 150 responded to share their experiences, which reveal consequences that experts say run counter to scientific logic and even common sense.

They spoke of the tremendous waste generated by an effort intended to save money — years of government-funded research that may never be published, blood samples in danger of spoiling before they can be analyzed.

Work to address disparities in health, once considered so critical to medical advancement that it was mandated by Congress, is now being cut if the administration determines it has any connection to “diversity,” “equity” or “gender ideology.” Caught in this culling were projects to curb stillbirths, child suicides and infant brain damage.

Researchers catalogued many fears — about the questions they won’t get to answer, the cures they will fail to find and the colleagues they will lose to more supportive countries. But most of all, they said they worried about the people who, because of these cuts, will die.

Please open the link to finish reading the article.

Last week, ICE was rounding up immigrant workers in agriculture, swooping them up in the fields where they were picking berries and radishes, trimming the vines in vineyards, and preparing the soil for planting. This is backbreaking work. The videos I’ve seen were taken in California, so this must be part of Trump’s focus on crippling the big Blue state.

The slogan of the farm workers’ union, United Farmworkers, is “We feed you.” If they are all detained and deported, who will do the hard work they do?

Farmers in California are typically pro-Trump; some of them must have called Trump to plead that he stop arresting their loyal workers. That would explain why, on Friday, Trump directed ICE to stop arresting agricultural workers, as well as immigrants employed in hotels and the restaurant industry.

Trump heard them and posted this incoherent response on Truth Social:

“Our great Farmers and people in the Hotel and Leisure business have been stating that our very aggressive policy on immigration is taking very good, long time workers away from them, with those jobs being almost impossible to replace. In many cases the Criminals allowed into our Country by the VERY Stupid Biden Open Borders Policy are applying for those jobs. This is not good. We must protect our Farmers, but get the CRIMINALS OUT OF THE USA. Changes are coming!”

Does Trump really believe criminals are slipping across the border to take jobs as farm workers?

Maybe Trump could launch a campaign to persuade MAGA patriots to pick the crops, not only in California but in Florida, Texas, the Deep South, Midwest and other states that voted for him. How many applicants would he get?

The conservative, Murdoch–owned Wall Street Journal editorialized that Trump’s immigration plan is in deep trouble, and rightly so. His goal (Stephen Miller’s) is to deport 11 million immigrants (one of every 20 people in the country. That’s led to raids at workplaces. Even his supporters are shocked. They voted to deport criminals, “the worst of the worst,” not the hard-working people who contribute to the economy.

Vincent Scardina is a Trump voter in Key West, Fla., who owns a roofing company. Six of his workers, originally from Nicaragua, were en route to a job late last month when they were detained, according to a report by a local NBC affiliate. Their attorney says five of those men have valid work permits, pending asylum cases, and no criminal records. We haven’t been able to verify that, but if it’s correct, jailing them is a strange enforcement priority.

“It’s going to be really hard to replace those guys,” Mr. Scardina said. “We’re not able, in Key West, to just replace people as easily as, say, a big city.” He also got emotional. “You get to know these guys. You become their friends,” he said. “You see what happens to their family.” Mr. Scardina’s message to the President that he helped to elect: “What happened here? This situation is just totally, just blatantly, not at all what they said it was.”

Four hours after that post about farms and hotels, Mr. Trump was back on Truth Social. President Biden let in “21 Million Unvetted, Illegal Aliens,” who have “stolen American Jobs,” he said. “I campaigned on, and received a Historic Mandate for, the largest Mass Deportation Program in American History.” For the record, the Census Bureau says the U.S. population is about 342 million, so he’s talking about maybe deporting 1 person in every 20.

Meanwhile, Mr. Trump’s deportation maestro, Stephen Miller, wants the immigration cops to arrest 3,000 migrants a day. That means raiding businesses across the country. Mr. Trump prefers to talk about “CRIMINALS” because he knows that’s where he has broad public support.

But his federal agents are out raiding job sites full of non-criminal, hard-working people who are contributing to the American economy. The real policy isn’t what Mr. Trump says, but what his agents do on the ground.

How can immigration czar Miller meet his goal without deporting farm workers, construction laborers, restaurant staff, and hotel workers?

Social media was ablaze yesterday and today with videos of ICE agents grabbing farm workers as they did their jobs in the fields and arriving at hotels and other places of employment to arrest undocumented workers.

Trump must have been bombarded with calls from farmers and business owners, outraged that their long-time workers were seized. Who will pick the fruits and vegetables? Who will clean the hotel rooms? Who will staff the kitchen and bus tables?

These were his supporters. They wanted the illegals deported, but not their workers. How would they function without their staff and their laborers?

Trump heard them. Late Friday he issued an order to ICE to avoid farms, restaurants, hotels, and meat packing facilities.

Maybe it suddenly occurred to him that removing the workforce from so many basic industries would be bad for the economy. Maybe Stephen Miller was out of town and turned off his cell phone.

The New York Times reported on his sudden change of plans:

The Trump administration has abruptly shifted the focus of its mass deportation campaign, telling Immigration and Customs Enforcement officials to largely pause raids and arrests in the agricultural industry, hotels and restaurants, according to an internal email and three U.S. officials with knowledge of the guidance.

The decision suggested that the scale of President Trump’s mass deportation campaign — an issue that is at the heart of his presidency — is hurting industries and constituencies that he does not want to lose.

The new guidance comes after protests in Los Angeles against the Trump administration’s immigration raids, including at farms and businesses. It also came as Mr. Trump made a rare concession this week that his crackdown was hurting American farmers and hospitality businesses.

The guidance was sent on Thursday in an email by a senior ICE official, Tatum King, to regional leaders of the ICE department that generally carries out criminal investigations, including work site operations, known as Homeland Security Investigations.

“Effective today, please hold on all work site enforcement investigations/operations on agriculture (including aquaculture and meat packing plants), restaurants and operating hotels,” he wrote in the message.

The email explained that investigations involving “human trafficking, money laundering, drug smuggling into these industries are OK.” But it said — crucially — that agents were not to make arrests of “non-criminal collaterals,” a reference to people who are undocumented but who are not known to have committed any other crime.

Democratic leaders asked the nonpartisan, highly respected Congressional Budget Office to evaluate the consequences of the Trump tax plan. In brief, the bill would widen the gap between haves and have nots and would increase the number in poverty.

The Financial Times reported:

Donald Trump’s landmark tax bill would make the most prosperous Americans $12,000 richer each year, while wiping $1,600 off the disposable income of the nation’s poorest, Congress’s fiscal watchdog said on Thursday. 

Trump’s “one big beautiful bill” narrowly passed the House of Representatives last month, extending tax cuts introduced during the US president’s first term in the White House in 2017. 

The Congressional Budget Office said in a letter that the top 10 per cent of Americans by income would, on average, see their resources rise by $12,000 a year, or 2.3 per cent of their projected income, should Trump’s “one big beautiful bill” pass the Senate in broadly the same form that it passed the House. 

“The changes would not be evenly distributed among households,” said CBO director Phillip Swagel in the letter addressed to Democrat lawmakers Brendan Boyle and Hakeem Jeffries, who had requested the analysis. 

“The agency estimates that, in general, resources would decrease for households towards the bottom of the income distribution, whereas resources would increase for households in the middle and the top of the income distribution.” 

The Economic Policy Institute issued an open letter to the American people, written and co-signed by six economists who won the Nobel Prize.

They wrote:

As economists who have devoted our careers to researching how economies can grow and how the benefits of this growth can be translated into broadly shared prosperity and security, we have grave concerns about the budget reconciliation bill passed by the U.S. House of Representatives on May 22, 2025.

The most acute and immediate damage stemming from this bill would be felt by the millions of American families losing key safety net protections like Medicaid and Supplemental Nutrition Assistance Program (SNAP) benefits. The Medicaid cuts constitute a sad step backward in the nation’s commitment to providing access to health care for all. Proponents of the House bill often claim that these Medicaid cuts can be achieved simply by imposing work reporting requirements on healthy, working-age adults. But healthy, working-age adults are by definition not heavy consumers of health spending, so achieving the budgeted Medicaid cuts will obviously harm others as well.

Medicaid provides health insurance coverage for low-income Americans, but this includes paying out-of-pocket health costs for low-income retired Medicare recipients and providing nursing home and in-home care services for elderly Americans. Medicaid also covers 41% of all births in the United States, including over 50% of all births in Louisiana, Mississippi, New Mexico, and Oklahoma. Work reporting requirements will obviously yield no savings from these Medicaid functions.

Besides providing affordable health care to families, Medicaid is also crucial to state budgets and hospital systems throughout the country—particularly in rural areas. In 2023, the federal government sent $615 billion to state governments to cover Medicaid spending; this federal contribution accounted for over 75% of total state Medicaid spending in more than 19 states. Rural hospitals in states that accepted the Medicaid expansion that was part of the Affordable Care Act were 62% less likely to close than rural hospitals in non-expansion states.

In addition to Medicaid, the House bill also significantly cuts SNAP. These steep cuts to the social safety net are being undertaken to defray the staggering cost of the tax cuts included in the House bill, including the hidden cost of preserving the large corporate income tax cutpassed in the 2017 tax law. But even these sharp spending cuts will pay for far less than half of the tax cuts (not even including the cost of maintaining the corporate income tax cuts of the 2017 law).

U.S. structural deficits are already too high, with real debt service payments approaching their historic highs in the past year. The House bill layers $3.8 trillion in additional tax cuts ($5.3 trillion if all provisions are made permanent) on top of these existing fiscal gaps—and these tax cuts are overwhelmingly tilted toward the highest-income households. Even with the safety net cuts, the House bill leads to public debt rising by over $3 trillion in coming years (and over $5 trillion over the next decade if provisions are made permanent rather than phasing out). The higher debt and deficits will put noticeable upward pressure on both inflation and interest rates in coming years.

The combination of cuts to key safety net programs like Medicaid and SNAP and tax cuts disproportionately benefiting higher-income households means that the House budget constitutes an extremely large upward redistribution of income. Given how much this bill adds to the U.S. debt, it is shocking that it still imposes absolute losses on the bottom 40% of U.S households(if some of the fiscal cost is absorbed in future bills with extremely high and broad tariffs, the share of households seeing absolute losses will increase rapidly).

The United States has a number of pressing economic challenges to address, many of which require a greater level of state capacity to navigate—capacity that will be eroded by large tax cuts. The House bill addresses none of the nation’s key economic challenges usefully and exacerbates many of them. The Senate should refuse to pass this bill and start over from scratch on the budget.

Daron Acemoglu
MIT Economics

Peter Diamond
MIT Economics

Oliver Hart
Harvard University

Simon Johnson
MIT Sloan School of Management

Paul Krugman
Graduate Center, City University of New York

Joseph Stiglitz
Columbia University

Tim O’Brien is senior executive editor of Bloomberg Opinion News. He writes here about why it is dangerous to call Trump “TACO Trump,” a moniker given to him by Robert Armstrong of the Financial Times.

TACO means “Trump Always Chickens Out.” It refers to his brash statements about draconian tariffs, followed by his usual backing down and deferring them. It happened on “Liberation Day,” April 2, it happened with his shakedown of Canada and Mexico, then his latest occurred when he announced 50% tariffs on the EU and the very next day, postponed them until July 9.

O’Brien writes about Trump’s huge and fragile ego. Although he evaded the draft when he was draft-eligible, he needs to be perceived as strong, tough, fearless, and fierce. A super-hero. A warrior. A man with nerves of steel.

O’Brien has a long history with Trump. In 2006, he wrote a book about Trump called TrumpNation. In the book, he said that Trump was not a billionaire, that he was worth only $150-200 million. Trump sued him for $10 billion for defamation. The suit was tossed out in 2009.

Being called “chicken” makes Trump very angry, O’Brien says.

“That’s a nasty question,” he told a reporter who asked about the TACO moniker at a White House press briefing on Wednesday. “Don’t ever say what you said. That’s a nasty question. … To me, that’s the nastiest question.”

Trump, who fashions himself a brilliant dealmaker and strategist despite ample evidence to the contrary, is, of course, always going to bristle at the notion that he is a chicken — and a predictable one at that. He also routinely peddles himself as an infallible winner, so the nastiest question is also one that speculates about whether he’s mired in a losing streak. His tariff policy, unleashed on allies and competitors alike, has been rolled out on a seesaw and riddled with economically damaging ineptitude.

O’Brien says we must prepare for a Trumpian show of force. He must show the world that he is no chicken. Not Putin’s puppet! Not a chicken! Tough! Strong! Never chicken!

It’s hard to say what is the very worst thing Trump has done in the first few months of his second term.

Here’s my candidate: the cancellation of vast numbers of grants for medical research. There is simply no rationale for the way he has laid waste to scientific research–to those seeking the causes and cures for deadly diseases that afflict the lives of millions of people.

The New York Times provided a public service by creating a database of the medical research that has been terminated.

This link is a gift article, so you should be able to open it.

It contains interactive features that I cannot duplicate.

Thousands of grants have been canceled or put in indefinite hold. They include research about effective vaccines. The search for cures for different types of cancer.

In his first months in office, President Trump has slashed funding for medical research, threatening a longstanding alliance between the federal government and universities that helped make the United States the world leader in medical science.

Some changes have been starkly visible, but the country’s medical grant-making machinery has also radically transformed outside the public eye, a New York Times analysis found. To understand the cuts, The Times trawled through detailed grant data from the National Institutes of Health, interviewed dozens of affected researchers and spoke to agency insiders who said that their government jobs have become unrecognizable.

In all, the N.I.H., the world’s premier public funder of medical research, has ended 1,389 awards and delayed sending funding to more than 1,000 additional projects, The Times found. From the day Mr. Trump was inaugurated through April, the agency awarded $1.6 billion less compared with the same period last year, a reduction of one-fifth. (N.I.H. records for May are not yet comparable.)

The impacts extend far beyond studies on politically disfavored topics and Ivy League universities like Columbia or Harvard. The disruptions are affecting research on Alzheimer’s, cancer and substance use, to name just a few, and studies at public institutions across the country, including in red states that backed Mr. Trump.

Why? What is the rationale? Whose interest does this serve?

Did the voters give Trump a mandate to destroy medical research?

Rosa DeLauro (D-Connecticut) is one of the most effective members of Congress. She is pro-labor and pro-public schools.

Watch as she rips into Russ Vought, director of the powerful Office of Management and Budget and primary author of Project 2025.