Tariffs, Screwworms, and Federal Funding: Unpacking the Consequences of Devastating Policies and Threats

Tariffs imposed by President Donald Trump led to tens of thousands of lost jobs in industries downstream from steelmaking, while few jobs were created in that highly automated sector. Economists Kadee Russ and Lydia Cox estimated in 2020 that Trump's first-term tariffs created about 1,000 new steelmaking jobs and cost approximately 75,000 jobs in downstream industries. Meanwhile, a rare human case of the flesh-eating New World screwworm has been found in Maryland, a salutary reminder of the threat this parasite poses to human public health, agriculture, and animal conservation. As the U.S. government invests millions in maintaining a barrier to protect against the screwworm, experts advocate for a bolder, more sustainable solution, including hemispheric eradication. Additionally, allegations of mortgage fraud targeting those who have crossed President Trump have sparked a dilemma, with options including ignoring wrongdoing or weaponizing the law for a political end.

Key Takeaways:

• Economists Kadee Russ and Lydia Cox estimated that Trump's tariffs created approximately 1,000 new steelmaking jobs and cost around 75,000 jobs in industries downstream from steelmaking in 2020.
• The first human case of the New World screwworm in the United States has been found in Maryland, highlighting the parasite's threat to human health, agriculture, and animal conservation.
• Experts advocate for a hemispheric eradication strategy to eliminate the screwworm, which would involve working with South American counterparts to contain the parasite.
• The U.S. government currently spends millions on maintaining a barrier to protect against the screwworm, but this solution is costly, fragile, and permeable to reinvasions.
• Allegations of mortgage fraud targeting Trump opponents have sparked a dilemma, with options including ignoring wrongdoing or using the allegations to achieve a political end.
• Congress has the opportunity to address the issue by scrutinizing federal criminal statutes, repealing or clarifying them, and amending the Federal Rules of Criminal Procedure to determine selective prosecution.
• The nearly $1 trillion in Medicaid cuts included in the recent budget bill could have devastating impacts on maternal health, particularly in rural areas, where Medicaid is the largest source of funding for pregnancy-related care.

Statistics:

• 75,000 jobs lost in industries downstream from steelmaking due to Trump's first-term tariffs (Kadee Russ and Lydia Cox, 2020)
• 1,000 new steelmaking jobs created by Trump's tariffs (Kadee Russ and Lydia Cox, 2020)
• 41% of all births in the United States are covered by Medicaid, the largest source of funding for pregnancy-related care
• 47% of all births in rural areas are covered by Medicaid
• The United States has one of the highest rates of infant and maternal deaths compared to other high-income nations
• The recent budget bill includes nearly $1 trillion in Medicaid cuts, which could exacerbate the maternal care crisis

Sources:

• Kadee Russ and Lydia Cox, "The Economic Effects of Trump's Tariffs" (2020)
• Megan McArdle, "My workers voted for Trump. Now they're paying for it" (Sept. 2 op-ed)
• Maximillian Seunik, "Time to Eradicate the Screwworm" (op-ed)
• Megan McArdle, "Yes, Lisa Cook should come clean. But some things are far more important" (Sept. 2 op-ed)
• Richard E. Messick, "A Wake-up Call for Congress and the Trump Administration" (op-ed)
• Mona Shah, "Strengthen Maternal and Reproductive Care, Not Gut It" (op-ed)