'Danger could have been avoided': Trump economic policy reportedly turns 'perilous'
The "danger" of Donald Trump's economic policy "could have been avoided" according to a political commentator who says the cost-of-living crisis is in a "perilous" state.
Ramesh Ponnuru of The Washington Post claimed the downturn brought on by the Trump administration's policies on the cost of living could have been avoided. The columnist likened the tariffs and other economic suggestions from the GOP to "a maze of paradoxes" which were not helping the economy whatsoever.
Ponnuru wrote, "But the economy was strong enough in late 2024 (certainly not as dire as in the early 1980s) that this danger could have been avoided. And that also would have avoided today’s situation, in which expectations of high inflation have become more entrenched — harder to roll back — and the economy has weakened further."
"The policy choices have become more perilous. Three percent inflation could be the new floor, or a recession could end up being necessary to keep prices stable anyway."
The columnist has since suggested Trump's plan for the economy is essentially unattainable for the administration to actually reach. Ponnuru explained, "Voters want prices to return to their pre-inflation level, not just to stay flat or rise slowly."
"This goal is practically unattainable. Prices on average across an economy rarely fall, and when they do it is usually a sign of distress." Trump's economic policy and insistence on tariffs has led to some rifts in the GOP.
There could be "permanent damage" to the economy in some parts of the country as a result of ongoing policies. Chief economist Gregory Daco estimated that some damage to the economy will be permanent, as certain business sectors will not recover their lost income.
The EY-Parthenon economist, speaking to The Wall Street Journal, explained that the money lost by federal employees delaying purchases of flights or homeware items would be recuperated in the months to come. But bars, restaurants, and other services that rely on foot traffic may struggle to regain ground following the shutdown.
As much as 20% of the economic hit from the shutdown "will be permanent," according to Daco, who says much of the damage comes from lost spending that cannot be regained. While there may not be long-term damage, some Americans are feeling the cost-of-living crunch more than ever.