US economy shows resilience but underperforms due to Trump's tariffs and Iran conflict
By
Eric Levitz
A baker's-dozen of insight crammed into one ring.
Summary
The article argues that while the US economy shows resilience with 2% GDP growth and low unemployment in 2026, it could have performed significantly better without President Trump's tariffs and military conflict with Iran. Despite positive indicators like wage growth outpacing inflation, the author contends that inflation is higher and GDP growth lower than it would have been under better policy conditions.
Key quotes
· 5 pulledPresident Donald Trump has put the US economy through the wringer.
US GDP rose at a 2 percent annual rate in the first quarter of 2026 and a 2.1 percent pace in 2025, far outstripping growth in most other advanced economies.
America's unemployment rate remains low by historical standards at 4.3 percent.
Wages rose faster than inflation throughout 2025.
To be sure, the economic indicators aren't all sunny.
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