Inflation highest in 6 months, layoffs highest in 5 years

The David Pakman Show - August 12, 2025

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Recent data shows troubling signs in the economy. Inflation rose in July, with core inflation up 0.3% month-over-month and 3.1% year-over-year, exceeding the Fed’s ideal 2-3% range. Layoffs hit their highest levels since the pandemic, and manufacturing experienced a sharp decline. Rising tariffs are pushing prices up, and these trends hint at economic challenges ahead.

In July, layoffs surged to the highest level in five years. Over 62,000 people lost jobs, a 29% increase from June and double from last year. Federal job cuts, totaling around 300,000 this year, hit essential government roles like food inspectors and airport workers. Trump’s tariffs contributed to manufacturing job losses and higher prices, lowering consumer spending and triggering layoffs in retail and other sectors.

Historically, data from agencies like the Bureau of Labor Statistics (BLS) and Congressional Budget Office (CBO) have been reliable and nonpartisan. Under Trump, however, that trust has eroded. He fired the BLS head after bad jobs reports and accused the agency of bias. Additionally, budget cuts forced the BLS to scale back data collection, making inflation and jobs reports less precise.

Trump recently seized control of Washington D.C.’s police and deployed hundreds of National Guard troops without local approval, citing a public safety emergency. Crime in D.C. is down significantly, yet Trump placed the police under Attorney General Pam Bondi. The Guard, trained mainly for disaster relief, reportedly opposes domestic policing orders and may resist compliance.

At a press conference meant to justify Trump’s actions, FBI Director Kash Patel contradicted the narrative, saying the U.S. murder rate is falling and nearing historic lows. He credited Trump but undercut the administration’s crime crisis claims. Trump showed visible displeasure, exposing tension between political messaging and reality.

Trump recently confused Russia with Alaska during a speech, repeatedly saying he was going to Russia when he was actually traveling to Alaska. While the right wing loudly criticized Joe Biden for minor verbal slips, they’ve stayed silent about Trump’s mistakes.

Inside the MAGA movement, Marjorie Taylor Greene is attacking fellow right-wing figures like Laura Loomer and Mark Levin. She accuses them of being unfit to influence the president’s decisions. This fight reflects a cult-like dynamic, where grifters compete for power and Trump’s favor.

On today’s bonus show:

Pete Hegseth draws controversy for retweeting a Christian nationalist pastor who opposes women voting. Trump hires a loyalist to head the Bureau of Labor Statistics, raising concerns about the accuracy and independence of upcoming economic data. Finally, Marjorie Taylor Greene is facing scrutiny over her rapidly increasing net worth and her diminishing influence within the Trump inner circle.

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