University of Michigan economist Justin Wolfers has a warning for America: “Our kids will feel it.”
Speaking with MeidasTouch host Ben Meiselas, Wolfers said Donald Trump’s second-term leadership isn’t just chaotic in the short term, it’s setting the U.S. up for long-term economic failure by undermining the very institutions that made it the world’s most prosperous country.
Wolfers explained that strong institutions like the Federal Reserve, the Bureau of Labor Statistics, and trusted trade relationships are essential to stable growth. But those foundations, he said, are being torn down.
“He’s attempting to take away the independence of the Federal Reserve. He’s tried to undermine how much federal economic statistics reflect reality. He’s tried to overturn an election,” Wolfers said.
“This is the most interventionist government of my lifetime.”
The impacts of that behavior might not show up in GDP next quarter, he added, but the deeper harm is generational.
“There will be businesses they never started. There will be job opportunities… There will be ways of creating a greener, safer, more prosperous future that simply aren’t possible,” Wolfers said.
“Our kids will feel it in a set of lost opportunities.”
JD Vance Under Fire for Titanic Comments
Vice President JD Vance drew criticism recently after comparing the U.S. economy to the Titanic, saying, “You don’t turn the Titanic around overnight.”
While Vance was trying to blame President Joe Biden for high prices, many interpreted the comment as an unintentional admission that Trump hasn’t fixed the economy either.
Vance also acknowledged during a March for Life speech that many conservatives are frustrated with the pace of political progress: “Not enough progress has been made… our politics have failed to answer the clarion call to life.”
Even longtime Trump allies pushed back. Right-wing activist Laura Loomer wrote on X, “Trump doesn’t like when the GOP focuses on abortion. How many times does he have to say this? Trump gets it. The GOP will blow the midterms.”
Broken Promises and Economic Whiplash
Wolfers said Trump’s economic approach has caused whiplash for both markets and everyday Americans.
“This might be the first ever economic downturn caused by incompetence,” he said.
“Often the role of economists is to remind people that the White House doesn’t control everything in their lives… That’s not a story that any economist is telling right now.”
He cited Trump’s behavior at the Davos economic forum, where the former president fabricated a deal with NATO and falsely claimed to be negotiating over Greenland.
His empty threats to impose new tariffs triggered a market sell-off, followed by a rebound when he backed off.
“It makes it harder for future promises to be believed,” Wolfers explained.
“If you can’t credibly commit to something, then no one will want to commit to anything with you.”
Institutional Damage, Delayed Impact
Wolfers emphasized that when countries destroy institutional trust, they pay the price later.
“When you are the richest country in the world, maybe you’re not the ones who should be thinking about ripping down your existing institutions,” he said.
The consequences won’t be seen in headlines, he added. Instead, they show up in the form of missed innovation, lost investment, and new companies never founded because of instability.
“That’s not going to show up in the next quarter’s GDP,” he said. “But our kids will feel it.”
Everyday People Left Behind
While Trump has pointed to stock market performance as proof of economic strength, Meiselas said that overlooks what most Americans are actually experiencing.
“It’s a K-shaped economy,” Meiselas said. “The rich get richer. Everybody else gets screwed.”
Inflation has made basic goods like towels nearly double in price, Meiselas noted. And though Trump once promised to slash household energy costs in half, prices have gone up.
Wolfers explained that while official government statistics remain mostly accurate, they are less trusted due to political interference.
“Almost everything that comes out of the White House is a lie. And if it’s true, it’s a mere accident,” he said.
Still, he urged the public to trust independent agencies like the Bureau of Labor Statistics and the Census Bureau, saying their figures are “honest but contestable” and typically the “best possible guess.”
Looking Ahead
Wolfers urged the public and the media to stop focusing only on the next election or economic quarter, and start asking: what kind of future are we building?
“Ask the much deeper question: What are the foundations of prosperity, shared prosperity, equitable growth?” he said. Those are the questions that really shape our long-term future.
Trump’s ongoing erosion of those foundations may not be felt right away, Wolfers warned. But it will be felt.
IMAGE CREDIT: ”Donald Trump” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.