The “at the moment almost inevitable” that the United States “are on its way to a deep, deep recession” thanks to the massive job reductions and withdrawal of the Trump government of official contracts, has warned a former Obama era of labor economists.
Jesse RothsteinA professor in public policy and economy at the University of California, Berkeley, predicted this week on Bluesky that the employment report for March 2025 will show “larger jobs losses than ever outside a few in 2008-9 and 2020.” (IE – When America was struck by the financial crash of 2008 and then, later, by the Coronavirus Pandemie).
Rothstein also imagined ‘enormous uncertainty of the private market’ that would withdraw companies to hire.
It will be “very bad,” he said he feared.
President Donald Trump is instructed by billionaire Elon Musk, the world’s richest man, with the lowering of government spending through the unofficial Ministry of Government Efficiency.
The current total number of federal jobs is unclear.
But Rothstein estimated that it was more than 200,000.
The disintegration of the government is only one Trump policy that economists have warned that America can deposit into a new financial crisis.
Others include Trump’s imposition of rates for input and his vow to deport millions of immigrants without papers.
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Nobel Prize winner economist Joseph Stiglitz said earlier this week that rates could cause stagflation – or stagnating economic growth, high inflation and rising unemployment. He added that the US will be ‘a scary place to invest’ amidst the setting up of government contracts.