U.S. Economy

President Trump’s latest tariff plan is under fire from a conservative think tank, which says the math behind it is both flawed and misleading. The American Enterprise Institute (AEI) warns that the formula used by the White House drastically overstates the trade barriers imposed by foreign countries — and risks harming the U.S. economy.

Inflation has severely impacted the financial stability of American seniors, requiring many to work an average of six additional years to secure their retirement plans, largely due to mismanagement in Washington.

Manufacturing employment growth in the U.S. has been modest since returning to pre-pandemic levels, indicating underlying weaknesses. This trend suggests that while some gains are highlighted, broad improvements for middle-class workers remain elusive, per commentary from Peterson Institute for International Economics.

President-elect Trump’s proposed tariffs will significantly raise prices for many imported goods, especially electronics, machinery, and vehicles. These changes will put financial pressure on American consumers and businesses alike, per commentary from Peterson Institute for International Economics.  

• Urban Institute experts write that the Biden administration's rent stabilization proposal aims to cap annual rent increases at 5% for units owned by large landlords, conditioned on maintaining existing tax breaks, aiming to stabilize housing and protect tenants from eviction or displacement.
• The experts argue that while the proposal could make more units affordable for low-income residents, it may also reduce the overall supply of rental units as landlords might convert properties or avoid entering the market, potentially driving up rents for uncontrolled units.

• Comfort Oshagbemi and David Wessel at Brookings examine why the U.S. spends substantially more on transportation infrastructure compared to other countries, highlighting limited state DOT capacity and over-reliance on consultants as key cost-drivers.
• The authors argue that limited competition and insufficient bidder outreach in the market for government construction contracts contribute to higher infrastructure costs in the U.S., and increasing bidder outreach and improving project planning can significantly reduce these costs.