Economic-Downturn-0.mp3
Economic-Downturn-0.mp4
Economic-Downturn-I.mp3
Economic-Downturn-I.mp4
Economic-Downturn-intro.mp3
[Intro]
Thinking all is fine
(Heading into decline)
Cut the forecasts
(Nothing good lasts)
[Verse 1]
Everything he touches
Turns to mold
No, not that much
Of a Midas touch
[Bridge]
About to spawn
Another Trump con
When will we learn
It’s an economic downturn
[Chorus]
Thinking all is fine
(Heading into decline)
Cut the forecasts
(Nothing good lasts)
[Verse 2]
Six bankruptcies
Wants to win one more
Hoping everyone sees
What’s in store
[Bridge]
About to spawn
Another Trump con
When will we learn
It’s an economic downturn
[Chorus]
Thinking all is fine
(Heading into decline)
Cut the forecasts
(Nothing good lasts)
[Outro]
Thinking all is fine
(Heading into decline)
Cut the forecasts
(Nothing good lasts)
AN ECONOMIC NOTE
Global Economic Outlook Dims Amid Rising Trade Barriers and Geopolitical Tensions
On March 17, 2025, the Organization for Economic Co-operation and Development (OECD) released its latest Interim Economic Outlook, revising downward its global economic growth forecasts. This worldwide slowdown is attributed to higher trade barriers in several G20 economies, which are expected to dampen global growth and contribute to inflationary pressures, elevated geopolitical tensions and policy uncertainties. For the United States, the OECD has notably reduced its GDP growth forecasts, anticipating a multiyear decline with a meager 1.6% in 2026. The OECD blamed the worldwide slowdown on recent US fiscal policies.
Additionally, the Atlanta Fed’s GDP tracker for real GDP growth also was revised downward today to -2.1% for the first quarter of 2025 indicating a possible recession in the first half of this year.
These forecasts highlight both the immediate and long term decline in global economies, as well as the severe impacts to the US economy due to Trump’s economic policies.
Ironically, a sharp decline in the U.S. economy could help counteract the ‘drill, baby, drill’ policy and slow fossil fuel consumption, which would be beneficial for the environment. An economic slowdown typically leads to reduced demand for oil and fossil fuels, resulting in lower emissions. This decreased demand often causes oil prices to fall. When the price of a barrel of oil drops below certain thresholds, drilling new wells can become unprofitable. For instance, in 2022, the average breakeven price to profitably drill a new well in the United States was approximately $56 per barrel, with regional variations ranging from $48 to $69 per barrel. Therefore, sustained oil prices below these breakeven points can discourage new drilling activities.
Explanation of the ‘Drill, Baby, Drill’ Policy:
The phrase “drill, baby, drill” emerged as a political slogan advocating for increased domestic oil and gas production in the United States. It gained prominence during the 2008 Republican National Convention and has been associated with policies aiming to boost fossil fuel extraction to achieve energy independence and economic growth. In recent years, this slogan has been revitalized to support expansive fossil fuel production initiatives. Proponents argue that such measures can lead to lower energy prices and reduced reliance on foreign oil. However, critics express concerns that this approach undermines efforts to combat climate change by perpetuating dependence on carbon-intensive energy sources.
President Donald Trump’s stance on climate change has been characterized by skepticism and policy actions that deprioritize environmental concerns in favor of economic and energy interests.
Public Statements:
- Historically, Trump has referred to climate change as a “hoax.”
- More recently, he has dismissed concerns about rising sea levels, stating, “That is not our problem,” and has emphasized “nuclear warming” as a more pressing threat.
- Trump has repeatedly referred to the climate crisis as the Green New Scam.
Policy Actions:
-
Upon his inauguration in January 2025, President Trump withdrew the United States from the Paris Agreement and pledged to roll back executive orders and policies from the previous administration aimed at addressing climate change.
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He issued an executive order titled “Promoting Energy Independence and Economic Growth,” aiming to dismantle many federal actions addressing climate change.
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The administration has proposed cuts to agencies like FEMA, which could significantly impact disaster response capabilities in states vulnerable to climate-related events, such as California.
Impact on Environmental Policies:
- The administration’s stance has led to reduced funding for clean energy projects and transportation initiatives. Major financial institutions have withdrawn from net-zero alliances, and the Securities and Exchange Commission (SEC) has implemented rules making it more challenging for investors to address environmental, social, and governance (ESG) issues within companies.