MAGA Economics Is Losing

Published: Friday, September 5, 2025 at 6:05 pm

MAGA Economics Faces Scrutiny Amidst Recent Jobs Data

Recent economic data is raising questions about the effectiveness of the "Make America Great Again" (MAGA) economic policies, particularly those centered on tariffs and immigration. The core tenets of this economic approach include higher tariffs to boost blue-collar employment and stricter immigration enforcement to protect American workers.

The latest jobs report, and those from the past few months, paint a concerning picture for these policies. The manufacturing sector, a key area targeted for growth, experienced a loss of 12,000 jobs in August and 78,000 over the past year. Over the past three months, coinciding with the full implementation of tariffs, the manufacturing sector is down 31,000 jobs. Other blue-collar sectors, such as construction and mining, have also seen declines during the same period.

These declines are linked to the administration's tariffs, which have imposed significant new taxes on American businesses, impacting the cost of parts, raw materials, and equipment. Businesses are responding by hiring fewer people or postponing investments, as many economists predicted.

The data on labor force participation also presents a challenge to the MAGA economic vision. The labor force participation rate, which measures the percentage of working-age adults employed or seeking work, has declined slightly to 62.4% in August from 62.7% in July. Over the past year, the labor force participation rate is down 0.4%. Despite the stated goal of re-engaging American workers by reducing competition from immigrants, there has been no significant surge in employment among native-born Americans.

While significant economic shifts can take time to materialize, the initial results of MAGA economic policies are underwhelming. The data suggests that tariffs are not delivering the promised benefits to the manufacturing sector, and the anticipated positive impact of stricter immigration enforcement on labor force participation has not yet been realized.

BNN's Perspective:

The economic data presents a complex picture. While it's premature to definitively declare the failure of these policies, the initial results warrant careful consideration. The administration should be prepared to adjust its approach if the current trajectory continues. A balanced approach that considers both the potential benefits and drawbacks of these policies is crucial for ensuring sustainable economic growth.

Keywords: MAGA economics, jobs report, tariffs, manufacturing, labor force participation, immigration, employment, blue-collar jobs, economic policies, American workers, economic data, US economy, Donald Trump, J.D. Vance

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