Trump continues to drain government and labor from US economy

(Originally published Oct. 21 in “What in the World“) The Trump administration continues to steadily dismantle the U.S. economy.

In its latest move, the White House is blocking another $11 billion in funding to projects in Democrat-controlled cities. The decision, announced by White House budget director Russell Vought in a social media post over the weekend, pauses Army Corps of Engineers projects in Baltimore, Boston, New York, and San Francisco. Vought blamed the shutdown for the pause, and Democrats for the shutdown. But it follows Vought’s move when the shutdown started earlier this month to block $18 billion in funds from New York City infrastructure projects and canceling $8 billion in funding from the Energy Department for climate projects.

The Interior Dept., meanwhile, plans to fire more than 2,000 of its 70,000 employees, according to a court filing Monday. Several unions have sued the departments to block the layoffs. Jobless feds may represent a badly needed new source of cheap labor for American companies. A new study estimates that Trump’s crackdown against illegal and legal immigration will eliminate 6.8 million jobs by 2028 and 15.7 million by 2035.

And no, jobless federal workers will not simply replace the immigrants who are deported or stop coming in. “It is wrong to assume that shrinking immigration helps U.S. workers when job growth slows,” explained NFAP economist Mark Regets. “Immigrants both create demand for the goods and services produced by U.S.-born workers and work alongside them in ways that increase productivity for both groups. While it is just one factor, we shouldn’t be surprised that opportunities for U.S.-born workers are falling at the same time an estimated one million fewer immigrants may be in the labor force.