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Don’t judge Trump’s economic agenda on one jobs report

Trumpism is not a subtle medication. Credit: Getty

Trumpism is not a subtle medication. Credit: Getty

September 7 2025 - 8:00pm

The recent jobs report showing declines in almost all high-wage sectors — notably manufacturing, professional and business services — does not augur well for the durability of the MAGA revolution. Although Trump inherited a weak economy, his policies in the short run seem to have accelerated layoffs without yet sparked hiring.

The numbers are frankly depressing. Manufacturing shed 12,000 jobs, extending a decline that began in February 2023. Wholesale trade also suffered, reflecting exposure to tariff turmoil. High-wage sectors were hit too, with lost jobs likely due less to trade than to the rise of AI. As in the closing years of the Biden administration, job growth is concentrated in low-end services such as retail, healthcare, and food.

Some of the problems lie in timing. Trump’s tariff threats have succeeded in winning huge commitments from major tech and industrial companies. But these developments take years to build, and even longer to become operational. In many ways Trump may suffer the indignity of seeing his positive legacy reaped not by his acolytes, but by the likes of Gavin Newsom.

This seems ironic given that Trump does not seem like a man with a coherent strategy or long-range vision. MAGA is, and will remain, a reactionary movement bent on rolling back progressive policies that reached their extremes during the twilight of the Biden years. Under the climate and social justice regime imposed by the Democrats, the economy could never really expand outside of government services, a reality more associated with Europe than America.

Trump has worked to roll back these trends, to his credit, but this will not be painless. There are vast constituencies — tech companies, financial markets, libertarian ideologues — who would like to see his economic policies fail, so that we can remain a country on an inexorable economic and technological retreat. A country that cannot produce screws can’t overcome one that can.

Sometimes entrenched problems need to be purged, and in this Trump has been effective. His approach to critical issues such as energy production, EV mandates, DEI, and expenditures of dodgy progressive projects, here and abroad, have had some effects. By the time he is finished, Trump may have unraveled much of the regulatory regime that has stifled production and deepened America’s perilous dependence on China.

Of course, these measures would be far more impactful if accompanied by a clear long-term vision. Symbolic gestures — such as renaming sports teams, the Department of Defense, or the Gulf of Mexico — are likely to be reversed when the opposition returns to power. What matters more is demonstrating how the GOP can drive growth through initiatives like expanded skills training, smarter use of technology, and incentives to manufacture and build domestically.

But like an enema, Trumpism is not a subtle medication. We may end up feeling better at the end, but the pain and discomfort of his efforts may doom him and the GOP — at least in the short term. Consumers paying 20–30% more for goods not produced domestically may not see the benefits of tariff-driven investments for a year, two, or even three.

Trump’s policies are already disrupting entrenched regulations and forcing industries to rethink domestic production. The results may be uneven and slow, but the long-term trajectory looks more promising than under Biden. Either way, one thing is certain: the decisions made today will shape the US economy for generations to come.


Joel Kotkin is a Presidential Fellow in Urban Futures at Chapman University and a Senior Research Fellow at the Civitas Institute, the University of Texas at Austin.

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China is threatening America in the AI race

Reports sugget Zhipu AI  has released a new model that can rival leading US systems. Credit: Getty

Reports sugget Zhipu AI has released a new model that can rival leading US systems. Credit: Getty

July 1 2026 - 10:18am

China is trying to catch up with America on artificial intelligence. The Wall Street Journal has reported that Zhipu AI — one of China’s six “AI tiger” LLMs — has released a new model that can rival leading US systems, including Anthropic’s Mythos, in cybersecurity tasks such as pinpointing security bugs. While this marks a milestone in China’s drive to catch up with Western AI capabilities, strong performance on a single benchmark does not mean it has taken the lead. Chinese models still lag behind their Western counterparts in broader capabilities, such as autonomous operation. Skepticism is therefore warranted before resorting to hysterical conclusions, but complacency about the geopolitical implications of China’s AI advances would be an even greater mistake.

On the infrastructure side, Chinese AI is still constrained by access to advanced chips, with American labs way ahead in computing capacity as well as investment. Analysis from earlier this year suggests that Chinese models are likely to be at least a few months behind those in the US. But they are still continuing to make progress, or that the geopolitical importance of AI will be decided only by whose LLM has ventured deeper into the technological frontier. The practical applications of AI, countries’ to capture foreign markets, and the application of AI into the real economy will matter just as much.

Here, China may hold an advantage. As with its dominance across many critical supply chains, Beijing may not need to produce the most advanced AI systems — only those that are affordable and widely deployable. In doing so, it could consolidate global influence by supplying functional, low-cost AI at scale.

Beijing seems to be pursuing exactly that path, developing an AI “open-source” strategy that offers affordable, widely available AI models for companies and individuals to use and modify as they wish. The production of the DeepSeek AI model, which matched the performance of Silicon Valley tools such as ChatGPT at a fraction of the cost for users, created goodwill among Chinese models with developers.

The four most popular models on OpenRouter, an AI hardware platform for developers, are now all Chinese. The goal for China is not only to win the frontier-model race, but to make its systems the default layer of AI adoption across industries and global markets. For most economies, the choice is increasingly between an affordable tool they can deploy now and a more robust one that may be out of reach.

And while the countries adopting Chinese models may be exposed to political pressure and cyber threats from Beijing, safer and more capable alternatives matter little if they are unaffordable. American AI companies are already under pressure to monetize products whose operating costs are rising. If Chinese open-source models become the cheap default for startups, universities, governments and businesses across the developing world, then America’s AI lead will be eroded from below.

Perhaps more concerning for America in the long run is how AI can give Chinese manufacturing even more strength, through the ongoing integration of AI as a general-purpose technology. China’s new Five-Year Plan mentioned AI more than 50 times and includes an “AI+” action plan aimed at spreading AI across the economy.

Beijing has been pioneering automation of its critical infrastructure for years, with promising recent results in increasing warplane production capacity. In that regard, China’s open-model strategy and manufacturing dominance will reinforce each other. Cheap, adaptable models accelerate deployment across the real economy while those deployments generate real-world data and use cases that can feed back into further model improvement.

The United States should not dismiss the importance of its lead in the AI race. That lead worries Beijing, not least because a more automated Chinese economy would also become more vulnerable to AI-generated cyber threats. But nor should Washington assume that China cannot catch up with American capabilities over time.

This AI competition represents part of a broader struggle over tech supply chains and geopolitical influence. Decisions over whether to adopt US or Chinese models could produce a more fragmented global reality, with different regions relying on different cloud providers, chips and security structures. The result will likely be a global economy which is divided into competing spheres, rather than one which produces a single winner.


Miquel Vila is a political and geopolitical risk consultant focusing on industrial strategy, critical infrastructure and global supply chains.

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