Summary

Trump’s team is considering abolishing key banking regulators, including the FDIC and OCC, with plans to consolidate their functions under the Treasury Department.

Critics warn this could undermine public trust in banking, weaken deposit insurance protections, and risk another financial crisis.

The FDIC, established during the Great Depression, played a crucial role in managing the 2023 banking crisis.

Trump allies, backed by financial industry donors, are also targeting other consumer protections, reflecting sweeping deregulatory ambitions tied to Project 2025’s proposals.

Experts fear these moves could destabilize the economy.

  • rishado@lemmy.world
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    1 day ago

    Well look, I’m not advocating for this coming government nor am I an economic expert. But in a vacuum one could impose tariffs on imported goods, tank the cost of labor in your own country, and force manufacturing back here, right? And in the long run, would be beneficial for local manufacturing instead of being so dependent on China. If it weren’t for the local oligarchy here I’d say it’s even a tough but fair plan for the economy. Knowing what we know, things will only get harder with no observable benefit for the working class as whatever improvement we manage to make will be sucked away by the ruling class. But the plan isn’t horseshit in a vacuum. Someone please feel free to tell me why I’m completely wrong as I’m not really speaking with too much conviction tbh

    • prole@lemmy.blahaj.zone
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      15 hours ago

      I believe this is what Milei is selling in Argentina. I believe your assessment is correct. They’re telling us that it will be hard in the short term, but it will be worth it in the long term. The thing is, they mean worth it for the owner class. Working class people will take the brunt of it and it will just stay awful.

    • partial_accumen@lemmy.world
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      1 day ago

      And in the long run, would be beneficial for local manufacturing instead of being so dependent on China…Knowing what we know, things will only get harder with no observable benefit for the working class

      …and…

      Someone please feel free to tell me why I’m completely wrong as I’m not really speaking with too much conviction tbh

      Those tariffs would destroy our $1.95 trillion in exports from the USA because many of those are finished goods with input materials imported (and now tariffed to high heaven). source

      Modern manufacturing doesn’t depend on hundreds of thousands of human bodies anymore. New manufacturing factories would be highly automated and only employ a tiny fraction of the now unemployed workforce to produce the same amount of goods as in years past.

      “From 1960 to today, American steel mills have decreased from an average of 700,000 workers to just 83,000. And within the last 40 years, the productivity of labor has increased more than five times from approximately 10 man-hours per finished ton to under 2.” source

      • Sanctus@lemmy.world
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        1 day ago

        So we’re basically forfeiting a bunch of jobs related to and effected by procuring overseas input materials to gain a small fraction of manufacturing jobs? That just sounds like it will damage the economy and not bring it back up.

        • 4am@lemm.ee
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          1 day ago

          Exactly why everyone with a brain has been shouting that this is the worst possible idea.

          • Sanctus@lemmy.world
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            1 day ago

            Oh hell yeah, thats like 85% of things. I didnt know a brain was required to know that tbh with the sheer amount of visible foreign made items.

            • 4am@lemm.ee
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              10 hours ago

              Unfortunately for us, my dude, most people are asleep at the wheel.

              Overworked and underpaid, too exhausted and broke to pay attention to or influence politics.