Gary Cohn, former chief economic advisor to President Donald Trump and current vice chairman of IBM, discussed the U.S. economy on CBS' 'Face the Nation,' emphasizing both its strengths and persistent challenges.
Core Facts
Cohn noted that GDP growth is trending at 5%, a high rate by U.S. standards, with inflation at high 2% and unemployment around 4-4.5%. However, he acknowledged a K-shaped recovery, where wealth disparities have widened, leaving many workers struggling with affordability.
Deeper Context
Economic Strengths
Cohn cited strong GDP growth, declining inflation, and stable unemployment as indicators of economic resilience. He attributed these trends to policies implemented during Trump's administration, though he did not explicitly endorse the president's claims about tariffs.
Affordability Crisis
Despite macroeconomic improvements, Cohn acknowledged that hardworking Americans are suffering, citing difficulties in paying bills and meeting basic needs. He stated that the White House is prioritizing affordability as a key issue, with the president planning to address it publicly.
Policy and Rhetoric
Cohn's remarks come as the Trump administration faces scrutiny over tariffs, with their legality under debate in the Supreme Court. While he did not directly challenge the president's claims, he framed the economic recovery as uneven, requiring targeted solutions for those left behind.
Opposing Views
Critics argue that the administration's policies have exacerbated inequality, while supporters highlight the overall economic growth. Cohn's balanced perspective reflects a broader debate over whether short-term gains justify long-term disparities.