Economist Peter Schiff says President Donald Trump’s economic agenda is backfiring on the same working-class voters who helped put him in office.
“Ironically, Trump was elected to help the working man. Yet it’s the working man who will suffer most from tariffs and inflation,” Schiff wrote on X.
He added that America’s “industrial base won’t be rebuilt; it will continue to collapse. The wealth gap will widen as asset values soar while savings and real wages sink.”
Schiff Expands on Trump’s Economic Position
In follow-up posts, Schiff argued that Trump’s economic views align more with progressive figures than traditional conservatives.
“When it comes to economics Trump is not a conservative. He is not even a moderate. He is left of center. He is closer on the political spectrum to AOC and Elizabeth Warren than he is to Ronald Reagan or Barry Goldwater,” he wrote.
He also challenged Trump’s repeated claims about the economy’s strength. “Trump keeps repeating that we have the hottest economy in the world. If it’s hot, it’s only because it’s burning down,” Schiff posted.
Labor Leaders Push Back on Trump’s Record
Schiff’s warnings echo concerns from labor leaders. AFL-CIO President Liz Shuler told NPR that “by every measure, this has been the most hostile administration to workers in our lifetimes. Working people are really not feeling secure in this economy.”
Trump maintains that his administration is on track.
“Every policy of the Trump administration is designed to lift up the American worker, promote great-paying blue-collar jobs, and to rebuild the industrial bedrock of our nation,” he said in a Cabinet meeting.
But uncertainty is growing. While average wages were up 3.9% over the past year and unemployment remains just over 4%, immigration crackdowns are affecting industries reliant on long-term immigrant workers, such as farming and elder care.
Employers say Americans are not stepping in to fill those roles, leaving gaps and forcing remaining workers to put in longer hours.
Union Concerns Over Jobs and Energy Projects
Brent Booker, general president of the Laborers’ International Union of North America, voiced frustration over the administration’s stop-work order on a nearly finished Rhode Island wind farm.
“It runs contrary to everything that [Trump] promised to our members and to the American people,” Booker told NPR, adding that several hundred workers are now idled.
Another point of tension is the federal workforce. The Office of Personnel Management reported that about 300,000 federal employees will leave their jobs this year, most through voluntary departures.
OPM director Scott Kupor framed this as a chance to “reward efficiency,” but critics say it is hollowing out key agencies and weakening public services.
The Bigger Picture
Trump and his allies highlight wage growth and job numbers as proof that his policies are working.
Economists like Schiff, along with union leaders, argue that those same policies could result in deeper inequality, stalled projects, and instability for workers.
The debate over whether workers are better off under Trump’s second term shows no signs of slowing down.
IMAGE CREDIT: “Peter Schiff” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.