Economic Downturn Under MAGA Administration: Consumer Confidence Suffers Largest Drop since 2021, Marks Third Successive Monthly Slump
In a significant development, city leaders from La Mirada, Whittier, and possibly Beverly have voted for a vote of no confidence in District Attorney George Gascon's policies. This move comes amidst growing economic uncertainty in the United States, with consumer confidence taking a hit.
The decline in consumer confidence, as indicated by the Conference Board's gauge, dropped by 7 points in February, marking the third straight decline. This dip is the most significant since August 2021, reaching 98.3. The decline in consumer confidence is a new indicator of economic uncertainty, following previous ones such as the mixed signals shown by the U.S. economy in 2025.
The U.S. economy posted moderate growth in Q2 of 2025, with real GDP rising by 3.0% annualised. However, this growth was largely due to reduced imports, likely impacted by tariffs, and solid consumer spending. Conversely, investment and exports declined, a trend that has been observed since President Donald Trump's policies, particularly tariffs and trade uncertainty, came into effect.
The Leading Economic Index (LEI), a key predictor of near-term economic trends, declined by 2.8% in the first half of 2025. This decline was driven by weak consumer expectations, falling new manufacturing orders, and rising unemployment claims, all factors indicating growing economic anxiety. Business confidence has also deteriorated sharply, with private domestic investment falling 15.6% in Q2.
The impact of tariffs and trade policies appears central to growing concerns. They have reduced imports, weighed on exports and investment, and created uncertainty that dampens business investment and consumer sentiment. The economic outlook reflects muted growth expectations and caution for the second half of 2025.
The recession, defined as a significant decline in economic activity that lasts for an extended period, is predicted to occur in the first half of 2024. The details of the reasons behind the votes of no confidence in DA George Gascon's policies are not specified in the text. However, it is clear that the growing uncertainty over President Donald Trump's policies is a contributing factor to the decline in consumer confidence.
Deputy DA and prosecutor Jonathan Hatami announced the votes of no confidence in DA George Gascon's policies. The report showing the decline in consumer confidence caused stocks and bond yields to fall. The economic outlook remains uncertain, with the recession looming and consumer confidence at a low ebb.
References: [1] The Conference Board, Consumer Confidence Index, February 2021, www.conference-board.org [2] Bureau of Economic Analysis, Gross Domestic Product, Q2 2025, www.bea.gov [3] Federal Reserve Bank of Philadelphia, Leading Index, Q2 2025, www.philadelphiafed.org [4] U.S. Census Bureau, International Trade in Goods and Services, Q2 2025, www.census.gov
- Amidst the economic uncertainty caused by President Donald Trump's policies, particularly tariffs and trade uncertainty, general-news outlets have reported a decline in consumer confidence, as indicated by the Conference Board's gauge, which dropped by 7 points in February.
- As a result of this decline, business news discussions have focused on the impact of the economic outlook on events such as community news and entertainment, with business confidence deteriorating sharply and private domestic investment falling 15.6% in Q2.
- In light of the significant drop in consumer confidence, currency markets have seen stocks and bond yields falling, and politics news is speculating on the potential consequences of the recession, predicted to occur in the first half of 2024.
