Trump's Economic 'Experiment' Falters as Debt Bubbles Grow

Tariffs, speculative policies fail to deliver promised manufacturing boom or reduce trade deficit

Published on Feb. 27, 2026

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In his second term, President Donald Trump has reshaped the U.S. economy through policies focused on stock market speculation, tariffs, and looting of other nations' resources. However, his 'experiment' has failed to revive U.S. manufacturing or reduce the trade deficit, while fueling the growth of dangerous debt bubbles. With the physical economy and productive employment declining, and scientific research underfunded, the nation faces the prospect of another major financial crash unless there is a fundamental change in economic policy.

Why it matters

Trump's economic policies have undermined the foundations of the U.S. economy, leading to job losses, unaffordable housing and healthcare, and the growth of unsustainable debt bubbles. This raises the specter of another financial crisis originating in the U.S., with potentially devastating consequences for the country and the global economy.

The details

Despite Trump's claims that his tariffs would generate 'trillions' in new revenue, the actual total collected during his first year in office was only $264 billion, less than 1% of the federal debt. Moreover, 96% of this tariff revenue was paid by American importers, not foreign countries. The tariffs also failed to decrease the U.S. trade deficit, which continued to grow. Meanwhile, manufacturing employment has steadily declined, and overall job growth has slowed to a quarter of recent levels. Debt bubbles are growing rapidly in areas like 'big tech,' private credit, and the Treasury market itself, raising the specter of another financial crash.

  • In 2025, the U.S. federal debt crossed $39 trillion, with interest payments exceeding $1 trillion per year.
  • In November 2025, the U.S. trade deficit in manufactured goods doubled from the previous month, reaching $60 billion.
  • In January 2026, the total of recorded firings and layoffs in the national economy was twice what it had been the January before.

The players

Donald Trump

The President of the United States, who has implemented economic policies focused on stock market speculation, tariffs, and looting of other nations' resources.

Scott Bessent

The U.S. Treasury Secretary, who is trying to manage the growing federal debt like a hedge fund speculator.

Jamieson Greer

The Trump Administration's Trade Representative, who promoted the return of the 'American System' at the Davos World Economic Forum, but focused solely on tariffs and trade, without mentioning the need for a national bank or new economic infrastructure.

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What’s next

The Supreme Court will likely have to rule on the constitutionality of the President's use of tariffs, which have been implemented without Congressional approval. Congress may also need to take forceful action to reassert its authority over taxation and trade policy.

The takeaway

Trump's economic policies have failed to deliver on their promises, leading to job losses, growing debt bubbles, and the prospect of another financial crisis. To avoid this, a fundamental change in national economic policy is needed, one that reasserts the role of Congress and focuses on rebuilding the country's physical economy and productive capacity through targeted investments in infrastructure, manufacturing, and scientific research.