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U.S. Economy and its Mess

When WSJ starts with stories like this...watch out.

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And so, it begins... in time for the holidays.

apnews.com

Amazon cuts 14,000 corporate jobs as spending on artificial intelligence accelerates

Amazon will cut about 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence.
apnews.com apnews.com
Amazon cuts 14,000 corporate jobs as spending on artificial intelligence accelerates

Amazon will cut about 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence while cutting costs elsewhere.

Teams and individuals impacted by the job cuts will be notified on Tuesday. Most workers will be given 90 days to look for a new position internally, Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, wrote in a letter to employees on Tuesday. Those who can’t find a new role at the company or who opt not to look for one will be provided transitional support including severance pay, outplacement services and health insurance benefits.

Amazon has about 350,000 corporate employees and a total workforce of approximately 1.56 million. The cuts announced Tuesday amount to about a 4% reduction in its corporate workforce.
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Meanwhile: 25 states just united to sue Trump for choosing to cut off SNAP benefits for children and struggling families, citing USDA's own publication that says Trump is required to use a $5 Billion contingency fund.
 
^ Because of the urgency it’s exactly the sort of case the Supreme Courts emergency docket is for but somehow I doubt that’s gonna happen.
 
Norri said:
^ Because of the urgency it’s exactly the sort of case the Supreme Courts emergency docket is for but somehow I doubt that’s gonna happen.
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There's a clip floating around of Trump bloviating a few months back about how he wants one big beautiful bill and once that is done, he doesn't need Congress anymore.

It's not just about Epstein that Mike Johnson has, in effect, dissolved the House. They are the ones who can fix this but quite a few Republicans have left the country on a vacation.
 
Among the used car salesman promises made by the 2024 Trump campaign were promises to increase manufacturing jobs in the US and keep those UAW union members working.

And then comes reality of tariffs, discontinued tax incentives and consumer slowdown...

These are the GM layoffs announced in the past week:

www.newsweek.com

General Motors lays off workers at Ohio site Trump pledged to save

GM will be cutting 550 jobs at the plant in Lordstown, Ohio, with hundreds of layoffs at other facilities across the U.S.
www.newsweek.com www.newsweek.com
An Ohio battery plant owned by General Motors and once championed by President Donald Trump as symbolizing his American manufacturing revival is laying off hundreds of workers amid a slump in demand for electric vehicles.

GM confirmed the decision to The Associated Press on Wednesday, following a report by The Detroit News that the company would be cutting 550 jobs at the Lordstown plant—a joint venture with Ultium Cells—and placing another 850 on temporary layoff, while also cutting around 1,200 jobs at an assembly plant in Detroit.
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  • General Motors laid off more than 200 salaried employees on Friday, as the automaker continues to cut costs.
  • The job cuts were primarily Computer-Aided Design, or CAD, engineers who worked at the company’s global tech campus in metro Detroit, according to GM.
  • The layoffs come days after the Detroit automaker raised its 2025 financial guidance.
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invezz.com

General Motors lays off 5,500 workers amid slowing EV demand and tax credits end | Invezz

General Motors is cutting 5,500 jobs across its EV and battery plants as it scales back production amid slowing demand and the end of key tax credits.
invezz.com invezz.com
General Motors lays off 5,500 workers amid slowing EV demand and tax credits end

  • GM cuts 5,500 jobs as EV demand slows and federal tax credits expire.
  • Factory Zero scales to one shift; 2,200 workers remain on furlough.
  • GM rethinks $35B EV plan after $1.6B charge and further job cuts.

General Motors Co. (GM) has announced layoffs affecting roughly 5,500 employees across its electric vehicle and battery plants in the United States, as the automaker scales back production following a sharp decline in demand for battery-powered cars.

The move comes on the heels of President Donald Trump’s decision to eliminate federal tax credits that had supported EV purchases.
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When the going gets tough, the not-so-tough leave town for a three day weekend...

www.cbsnews.com

Government shutdown likely to extend to next week as Senate adjourns with no breakthrough

Senators continued to express cautious optimism over bipartisan talks to end the shutdown, but the chamber adjourned without another vote.
www.cbsnews.com www.cbsnews.com
What to know on Day 31 of the government shutdown:

  • The Senate adjourned on Thursday and won't meet again until Monday, extending the government shutdown until at least its 34th day, which would match the longest funding lapse in U.S. history.
  • Senators continued to express cautious optimism about bipartisan talks over reopening the government and passing longer-term appropriations bills, but Thursday saw no apparent breakthroughs, and the upper chamber did not vote on the House-passed continuing resolution.
  • Senate Majority Leader John Thune told CNBC that "a lot more conversations" are happening between rank-and-file members, and suggested that next week's elections might provide the catalyst needed to end the stalemate.
  • Funding for food stamps under the Supplemental Nutrition Assistance Program is due to expire on Saturday, leaving 42 million Americans without access to benefits. Several senators said the freeze would increase pressure on both sides to reach a deal.
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Meanwhile, Speaker Mike Johnson keeps the House adjourned while most of the House members continue to collect a paycheck after a month of not being in Washington. Their Congressional staff are not being paid.
 
More grim tech job market news, as companies replace humans with AI tools and chat bots:

  • IBM will lay off thousands of employees in the current quarter.
  • A 1% cut globally could impact nearly 3,000 employees.
  • The hardware, software and services provider said it expects U.S. headcount to stay flat year over year.
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Meta (aka Facebook) is laying off 600 people from it's AI staff to consolidate departments and have them report to their Chief AI Officer. Meta has invested $14.3 billion in it's AI units recently.
Meta will lay off roughly 600 employees within its artificial intelligence unit as the company looks to reduce layers and operate more nimbly, a spokesperson confirmed to CNBC on Wednesday.

The company announced the cuts in a memo from its chief AI officer, Alexandr Wang, who was hired in June as part of Meta’s $14.3 billion investment in Scale AI. Workers across Meta’s AI infrastructure units, Fundamental Artificial Intelligence Research unit (FAIR) and other product-related positions will be impacted.
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More signs of a cooling economy.
Shutdown means another missed jobs report Friday. Here’s what it probably would have shown
  • Jobs Friday won’t be happening again this week as the record-long government shutdown has resulted in a lack of official data on the labor market as well as a host of other important indicators.
  • Had the Bureau of Labor Statistics released its monthly nonfarm payrolls report, economists surveyed by Dow Jones expect it would have shown a decline of 60,000 jobs and an unemployment rate increase to 4.5%.
  • Other data points collected over the past several weeks paint a broad mosaic of a weak though not collapsing labor market.
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Meanwhile, the Trump Administration is doing everything it can to starve children and the elderly:

  • The Trump administration asked a federal appeals court for an emergency block on a judge’s order that it pay 42 million Americans full SNAP benefits for November.
  • The administration asked the 1st Circuit U.S. Court of Appeals to allow its plan to pay 65% of the food stamp benefits this month from a contingency fund.
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^ Republicans can blame democrats all they want for the shutdown and say ‘Schumer Shutdown’ a hundred times a day but the above action along with Duffy shutting down airspace clearly shows that whoever is responsible for the shutdown republicans are happy to make it worse.

Hungry people and stranded passengers the pugs are losing votes with each passing day. I know they are thrilled to have a non- politician leading their party but what that party desperately needs just now is a professional politician.
 
Norri said:
Hungry people and stranded passengers the pugs are losing votes with each passing day. I know they are thrilled to have a non- politician leading their party but what that party desperately needs just now is a professional politician.
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You might be interested in reading former Arizona Senator Jeff Flake's editorial in the WaPo:

The great GOP migration has begun
November 6, 2025 By Jeff Flake

The midterms promise a reality check — and growing defections from disastrous MAGA orthodoxy.

In politics, migrations rarely happen all at once. They start quietly — one or two members of a herd moving toward safer ground while the rest pretend not to notice. But once the wind really changes, the movement becomes unmistakable. I believe that a migration has begun within the Republican Party.
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Flake is proposing that the massive overreach by MAGA and Trump- the $350 million ballrooms, the masked police force violently arresting people without a warrant, the military conducting extra-judicial murder on the high seas- is antithetical to everything American. He proposes, that voter by voter, district by district, the fever that was Trumpism is going to break.

Flake may be optimistic. For 40 years, the Republican Party has been operating like a cult dependent upon charismatic leaders like Reagan, George W Bush and Trump, for its existence, while being financed by an increasing class of oligarchical billionaires. It might be Trump's death that breaks the fever. But I suspect that the Republicans will need a few years lost in the wilderness before they return to a more rational small government, libertarian and traditionally conservative party.
 
Of course Flake is optimistic.

Which is a danger. But something that the old guard Dems will want to convince themselves of...the old 'if only we can get a few more of the centrist Repubs and the independents, we can slide through again maybe without having to stand for something.'

At the moment, the anger over flight cancellations could go both directions if TrumpCo. can keep hammering away that it is the Dems fault.

And I would bet that it will not be the hard-line MAGAts who don't go anywhere they can't drive who will be trying to fly all over the country for thanksgiving.
 
KaraBulut said:
You might be interested in reading former Arizona Senator Jeff Flake's editorial in the WaPo:



Flake is proposing that the massive overreach by MAGA and Trump- the $350 million ballrooms, the masked police force violently arresting people without a warrant, the military conducting extra-judicial murder on the high seas- is antithetical to everything American. He proposes, that voter by voter, district by district, the fever that was Trumpism is going to break.

Flake may be optimistic. For 40 years, the Republican Party has been operating like a cult dependent upon charismatic leaders like Reagan, George W Bush and Trump, for its existence, while being financed by an increasing class of oligarchical billionaires. It might be Trump's death that breaks the fever. But I suspect that the Republicans will need a few years lost in the wilderness before they return to a more rational small government, libertarian and traditionally conservative party.
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I did read Flake’s piece today and I do think he’s somewhat optimistic just because he does see this as a fever that will break after Trump if not before but I am not as confident as he is. I do think Trumps trouble with ranchers is encouraging as Trumps response telling them how much he has done for them and how grateful they should is so tone deaf, if this is how he is moving forward he will alienate some of his followers……the snap ones for instance. If the economy gets worse and people complain about the Trump economy these type of responses will hurt him badly and he’s oblivious to it.

Seriously though I’ll give you Reagan and Trump but a Bush with charisma is something I have not seen yet.
 
rareboy said:
Of course Flake is optimistic.

Which is a danger. But something that the old guard Dems will want to convince themselves of...the old 'if only we can get a few more of the centrist Repubs and the independents, we can slide through again maybe without having to stand for something.'

At the moment, the anger over flight cancellations could go both directions if TrumpCo. can keep hammering away that it is the Dems fault.

And I would bet that it will not be the hard-line MAGAts who don't go anywhere they can't drive who will be trying to fly all over the country for thanksgiving.
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There's a deficit of Dems in the center, too.

The issue isn't the Republicans in the center. It's a deficit of Republicans who put their constituents before their own interests. But why should they? Most have been gerrymandered into non-competitive districts.... when Dems bother to even find a candidate to run against them.

One thing that we discovered during the pandemic is that there's a significant number of people out there who live on the edge of poverty. A serious illness, an unplanned pregancy or a couple of missed paychecks can send them into dire financial straits.

The increasing cost of groceries and the game of chicken being played in DC is causing a lot of unhappiness. And there's a lot of them that are saying, "Why is that guy who promised to make things cheaper flying around the country playing golf? Or worse, why is he in some foreign country instead of in DC getting the government open again?"

If the aviation situation isn't settled by Thanksgiving, there will be an uproar. Nothing pisses people off more than canceled flights or being stuck in an airport somewhere.
 
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Norri said:
...Seriously though I’ll give you Reagan and Trump but a Bush with charisma is something I have not seen yet.
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He's very likeable when you meet him in person. Lots of eye contact. Smiles a lot. Has a certain goofy charm that is not threatening. Watch a Jeb Bush speech and you'll realize how much more charisma Dubya has. Jeb speaks in complete and coherent sentences but he has no 'riz at all.

Back in 1999, Dubya had surrogates at churches and Christian conventions handing out DVDs about Bush's personal story... the alcoholism, how he was "saved" and selling his "compassionate conservative" agenda. It, of course, was a blatant violation of the Johnson Amendment but it was another chip in the separation of Church and State that began with Carter, was perfected by Reagan and Bush and is now in full "office in the White House" mode under Trump.

It's connected. There's a segment of the Republican base that is always looking for a Messiah. They're going to be the last to quit Trump (they've been waiting for Jesus for 2,000 years, so they're always willing to stick it out a little longer). It will take more than poverty and loss of entitlements for them to move on to another political savior.
 
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