The economic storm Democrats say Trump is making worse

By Michael Jones

Donald Trump’s return to the White House in 2024 was fueled in no small part by Americans’ frustration with stubborn inflation under the Biden-Harris administration. Many voters—weary of rising grocery bills, rent hikes and high interest rates—backed the then-Republican nominee on the belief that he would take swift action to ease the cost of living, a promise that proved central to his second-term campaign message.

But we’re now more than two-thirds into the first year of Trump 2.0 and consumers are still feeling the pinch, according to most economic indicators. The most recent jobs report showed job growth nearly stalled in August with a mere 22,000 new jobs and unemployment rising to 4.3 percent.

The burden is especially heavy for Black workers, who faced a 7.5 percent unemployment rate last month, compared to 3.7 percent for whites, 3.6 percent for Asians and 5.3 percent for Hispanics. Long-term unemployment for Black Americans (duration 27 weeks or more) remains elevated, with average durations somewhat longer than for white or Asian workers.

Youth workers, ages 16 to 24, are faring much worse based on summer data that reported a 10.8 percent unemployment rate, up from 9.8 percent in July 2024. The data signals young workers are struggling to find stable jobs, which delays skill accumulation, work experience and upward mobility.

Lawmakers view these tandem struggles as an alarming sign of a broader economic downturn that Republicans have not only failed to address, but could make worse through legislation like the megabill they passed this summer.

“The Black community clearly has a lot to lose under the failed policies of Donald Trump,” House Minority Leader Hakeem Jeffries (D-N.Y.) told me. “The American Dream is increasingly out of reach and Donald Trump is making it worse for younger Americans to be able to lift themselves up and achieve all of the things that have been attainable by their parents and grandparents.”

Sen. Raphael Warnock (D-Ga.) expressed deep concern about the disparities too.

“We often say that when America has the flu, Black America has pneumonia,” he said. “This is a direct result of the president’s policies. This is his economy and it’s bad news for a lot of people.”

Rep. Gabe Amo (D-R.I.) echoed Warnock’s flu metaphor and called BS on the Trump administration’s attempts to mischaracterize the strength of the economy.

“Look at the old industrial towns and a lot of our states where there is a large Black population where that’s affected,” he said. “So when you are thinking about the future, and you’re thinking about the short sightedness of the administration’s decisions regarding tariffs and folks have to have layoffs, who’s that going to affect disproportionately?”

High unemployment for Black and youth workers signals that gains are unevenly distributed. When large segments of the population are sidelined, the economy underperforms its potential.

Because Black families already face lower average household wealth, prolonged unemployment hits harder—affecting housing stability, retirement contributions, and intergenerational support. The elevated rate makes Black workers disproportionately sensitive to downturns; if the economy tips further toward contraction, they are often first to be laid off and the last to be rehired.

Lower income among young and Black households also dampens consumer spending, especially in sectors like retail, services and housing that heavily rely on younger and diverse consumers.

If young workers can’t get on the ladder to upward mobility, and Black workers face repeated setbacks, the country loses out on human capital, and American innovation, entrepreneurship and tax revenue pay a cost over the long run. 

Persistent disparities often feed into debates over education, workforce training, minimum wage and anti-discrimination enforcement—all issues Democrats highlight as proof of inequity while Republicans frame it around a so-called skills and labor market mismatch.

Whatever you call it, it’s hard to deny that a softer overall labor market, paired with disproportionate harm to vulnerable groups, adds pressure for the Federal Reserve to ease rates even if wage growth and inflation risks complicate that response.

Speaking of the Fed, Rep. Ayanna Pressley (D-Mass.), the first Black woman elected to Congress from her state, wrote a letter last week to Chair Jerome Powell raising concerns about the rising unemployment rate among Black women in the United States and urging the Fed to take steps to meet its mandate of maximum employment. The letter comes amid federal workforce reductions that have affected Black women disproportionately and following the removal of Federal Reserve Governor Lisa Cook.

“Economic barriers like hiring discrimination and wage disparities are more prevalent when employers are prohibited from valuing diversity, equity, and inclusion,” Pressley, who serves on the House Financial Services Committee, wrote in the letter. “It is incumbent upon the Federal Reserve to adjust its approach to ensuring a fair economy in the face of fiscally irresponsible policies from the White House.”

During their four years in office, former President Biden and former Vice President Harris sought to ease the cost of living through a mix of targeted tax credits, subsidies and regulatory relief. They expanded the Child Tax Credit during the pandemic, capped insulin costs for seniors, poured billions into affordable housing programs and extended enhanced Affordable Care Act subsidies that lowered premiums for millions of families. 

Their Inflation Reduction Act also included measures to reduce prescription drug prices and invest in clean energy, which Democrats argued would cut household expenses over time. Yet despite these steps, many voters felt the relief was too slow or too limited compared to the day-to-day strain of high prices.

“While there’s more that could have happened, record high Black unemployment happened in the context of making sure everybody was better off through infrastructure, through action on the climate and to lower energy costs, through work to empower local communities to invest in themselves,” Amo said. “What we’re seeing is actually rapid disinvestment in communities, rapid underfunding programs that have been a staple of opportunity.”

Another adage that came up during my reporting is “a rising tide lifts all boats,” meaning that when the overall economy improves, everyone is expected to benefit, regardless of their individual circumstances.

Ahead of the midterms, Democrats are trying to position themselves as defending vulnerable communities while holding Republicans accountable for an economic agenda that they argue has little to offer the Americans who need relief the most.

“Democrats are committed to standing up for the [Black community] and young people of America to ensure that when they work hard and play by the rules, they can afford to live the good life.”