Derek Thompson

Derek Thompson

What’s Happening to the Economy Is Obvious to Anyone Paying Attention

This is the road to stagflation

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Derek Thompson
Sep 06, 2025
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One month ago, the Bureau of Labor Statistics produced a jobs report so horrendous that Donald Trump took the unprecedented step of firing the BLS commissioner. On Friday, the bureau published its latest jobs report.

It was worse.

The economy added only 22,000 jobs in August. The unemployment rate rose slightly. Revised data showed that employment fell by 13,000 in June, the first decline since the pandemic, a classic warning sign of an economic slowdown.

Graphic source: Justin Wolfers

In the spring, Trump’s 19th century throwback economics were billed as a way to help America build stuff, dig stuff, and save the common man. Remarkably, his policies are already achieving the opposite effect in every single way:

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