Through recessions, wars, financial crises and political turmoil, the U.S. economy has maintained its reputation as the safest place in the world for investors to put their money and for entrepreneurs to build their businesses.
That has given the United States a nearly incalculable economic advantage, allowing it to borrow more cheaply, grow more quickly and emerge from downturns more successfully than nearly any of its global peers.
President Trump may be chipping away at that advantage.
In recent weeks, Mr. Trump fired the head of the Bureau of Labor Statistics when her agency reported weak job growth and tried to force out officials at the Federal Reserve when they refused to cut interest rates. He and his aides have used the power of the federal government to target — and perhaps criminally prosecute — perceived enemies, including at the Fed, and to pressure companies over their business decisions.
His administration has used private tax data to pursue undocumented immigrants and overruled the decisions of once-independent government grant makers to cut off funding for certain kinds of scientific and medical research.
Individually, each move carries risks, according to economists across the political spectrum. Undermining Fed independence could lead to faster inflation. Meddling with economic statistics could drive up the government’s borrowing costs. Cutting research funding could threaten long-term economic growth.
Taken together, the Trump administration’s efforts to expand its influence into spheres that were once insulated from political meddling pose a larger threat, potentially undermining the United States’ previously unshakable reputation as a reliable, predictable place to do business.
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The post Trump’s Attacks on Institutions Threaten a Bulwark of Economic Strength appeared first on New York Times.
