Image: President Donald Trump speaks during a press briefing at the White House on February 20, 2026, in Washington, DC. (Photo by Chen Mengtong/China News Service/VCG via Getty Images)
President Donald Trump’s economic agenda “will make ordinary families reliably poorer in the future,” according to the author of a report published Tuesday by the Economic Policy Institute.
Josh Bivens, EPI’s chief economist, said Trump’s slashing of federal spending and jobs, mass deportations, chaotic tariffs, and anti-labor policies were suppressing hiring and wages, draining household and business spending, and slowing economic growth.
While a recession is not yet inevitable, Bivens argued that worrying signs are already on the horizon, with 1.4 million fewer new jobs than expected in 2025 and unemployment ticking up to 4.4%, up from the low of 3.4% in April 2023.
For low-wage earners, the past year has been particularly rough. After seeing unusually fast growth during the presidency of Joe Biden, real wages for the bottom 10% of earners fell by 0.3% in 2025.
The report predicts that Republicans’ 2025 budget package will reduce “aggregate demand” in the coming years. The so-called One Big Beautiful Bill Act cuts $100 billion annually from Medicaid and the Supplemental Nutrition Assistance Program (SNAP), while allowing health insurance subsidies that saved families thousands to expire, which the report projects will cause many families who rely on these benefits to pull back spending in the economy.
While the law reduced taxes, the vast majority of those benefits went to the wealthiest earners, whose spending was already much less constrained by their incomes.
Find your US Representative: Click Here
