Over the past year, President Donald Trump implemented tariffs that were predicted to negatively impact the economy, yet inflation remained modest at 2.7 percent, unemployment stayed low at 4.4 percent, and GDP grew by 4.3 percent. The stock market boom helped mask deeper economic issues, with gains primarily benefiting higher-income earners and AI-related sectors. However, the economy saw a net decline of two million workers due to deportation policies, leading to job losses in sectors reliant on migrants and a lack of hiring growth despite GDP expansion. Small businesses faced challenges due to policy uncertainty and limited benefits from the AI industry, raising concerns about jobless growth and potential future impacts on the labor market.
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