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Fact check: Is the economy in the united states going to collapse under trump

Checked on May 10, 2025

1. Summary of the results

The question of economic collapse cannot be answered with a simple yes or no, but there are significant warning signs and challenges facing the U.S. economy:

  • GDP declined by 0.3% in Q1 2025 [1] [2]
  • Major financial institutions have raised recession probabilities:
  • JP Morgan: 40%
  • Moody's: 35%
  • Goldman Sachs: 20% [3]
  • Trump's trade policies, particularly broad tariffs of 10% on imports and 145% on Chinese goods, are creating economic uncertainty [2]

2. Missing context/alternative viewpoints

The original question lacks important historical and contextual perspective:

  • Trump's previous term averaged 2.3% GDP growth, which was not historically exceptional [4]
  • The White House maintains an optimistic stance, claiming "strong momentum" and predicting an "economic boom" [5]
  • Global experts at Davos have highlighted broader international concerns beyond just U.S. domestic policy [6]

Specific Risk Factors identified by analysts include:

  • Reciprocal global tariffs implemented in April 2025
  • Cuts to social safety net programs (Medicaid, SNAP)
  • Potential loss of dollar's global reserve currency status
  • Increasing economic isolation [7]

3. Potential misinformation/bias in the original statement

The question itself contains inherent bias by:

  • Suggesting a binary outcome (collapse/no collapse) when economic reality is more nuanced
  • Attributing potential economic problems solely to Trump, when economic performance under both Trump and Biden administrations faced similar challenges like pandemic recovery and inflation [4]

Competing Narratives and Their Beneficiaries:

  • The Trump administration benefits from promoting economic optimism and "strong momentum" narrative [5]
  • Financial institutions and economic analysts benefit from maintaining credibility through more measured assessments [3]
  • Opposition politicians and media benefit from emphasizing economic risks and negative indicators [7]

The reality appears to be that while there are serious economic challenges and increased recession risks, characterizing it as an inevitable "collapse" would be an oversimplification of a complex economic situation.

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