After four months, it’s Little PINO TACO’s economy. Reuters.com has a neat recap of the situation as of today.

US labor market showing cracks; corporate profits post largest drop since 2020

• Summary

• Weekly jobless claims increase 14,000 to 240,000
• Continuing claims rise 26,000 to 1.919 million
• Corporate profits fall $118.1 billion in first quarter
• Economy contracts at 0.2% rate in Q1 by all measures

WASHINGTON, May 29 (Reuters) – The number of Americans filing new applications for jobless benefits increased more than expected last week and the unemployment rate appeared to have picked up in May, suggesting layoffs were rising as tariffs cloud the economic outlook.

The report from the Labor Department on Thursday showed a surge in applications in Michigan last week, the nation’s motor vehicle assembly hub. The number of people collecting unemployment checks in mid-May was the largest in 3-1/2 years.

The dimming economic outlook was reinforced by other data showing corporate profits declining by the most in more than four years in the first quarter, pulled down by nonfinancial domestic industries.

A U.S. trade court on Wednesday blocked most of President Donald Trump’s tariffs from going into effect in a sweeping ruling that the president overstepped his authority. They were temporarily reinstated by a federal appeals court on Thursday, adding another layer of uncertainty over the economy.

“This is a sign that cracks are starting to form in the economy and that the outlook is deteriorating,” said Christopher Rupkey, chief economist at FWDBONDS. “There is nothing great about today’s jobless claims data and the jump in layoffs may be a harbinger of worse things to come.”

Initial claims for state unemployment benefits rose 14,000 to a seasonally adjusted 240,000 for the week ended May 24, the Labor Department said. Economists polled by Reuters had forecast 230,000 claims for the latest week.

They said Trump’s aggressive trade policy was making it harder for businesses to plan ahead, a sentiment echoed by a Conference Board survey on Thursday, which showed confidence among chief executive officers plummeting in the second quarter.

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Meanwhile, as the economy begins to show the cracks all of us expected with TACO’s economic policies, Paul Krugman adds insights into how TACO’s malicious stoppering of foreign students at US colleges and universities will impact the economy.

America Turns Its Back on the World

My wife and I are co-authors of a widely used textbook on the principles of economics, which is revised on a three-year cycle. When a new edition comes out, I normally visit a number of schools that might adopt it, usually giving a big public talk, a smaller technical seminar, and spending some time with students and faculty. I enjoy it, by the way; there are a lot of good, interesting people in U.S. education, and not just in the high-prestige schools.

So it was that at one point I found myself visiting Texas Tech in Lubbock. Yes, it seemed pretty remote to someone who has spent almost his whole life in the Northeast Corridor, but as usual the overall experience was very positive. And it was also surprisingly cosmopolitan: there were students from many nations. I just checked the numbers, and currently 30 percent of Texas Tech’s graduate students are international.

So it is all across America. Our nation’s ability to attract foreigners to study here is one of our great strengths. Or maybe I should say was one of our strengths.

According to Politico, a cable from Marco Rubio, the secretary of state, has directed U.S. embassies and consulates to halt all processing of visa applications from foreigners hoping to study in the United States. This is reportedly a temporary measure in preparation for a new system in which would-be students will be screened on the basis of their social media history. And you can be sure that the criteria for denying entry will go far beyond, you know, advocating terrorism. Probably asking “Why was Trump talking to West Point grads about trophy wives?” will be grounds for rejection.

This completely insane policy move is presumably a temper tantrum in response to a court’s rejection of the administration’s attempt to prevent Harvard from admitting foreign students, which was in turn a temper tantrum in response to Harvard’s rejection of demands from Trumpists that they be allowed to dictate the university’s hiring and curriculum.

The courts will probably reject this policy move, too, but I worry that Rubio and co. can put enough sand in the gears of the visa process to bring the entry of international students to a near halt. And even if they can’t, the clear message to students that they aren’t welcome (and may be arrested once here) will have an immensely chilling effect.

It’s hard to overstate the self-destructiveness of this move, and the war on higher education in general. This is madness even in purely economic terms.

We don’t often think of education as a major U.S. export, but it is. International students typically pay full tuition and require little or no financial aid. Here’s “education-related travel,” basically international students, compared with some other major U.S. exports:

Source: Bureau of Labor Statistics

And because international students typically pay full freight, while domestic students often don’t, foreign students help support higher education financially. That’s a big deal. My sense is that most people have no idea how important higher education is as a source of jobs, many of them middle-class. Here’s a comparison of employment in “Universities, colleges and professional schools” with employment in some politically prominent sectors:

Source: Bureau of Labor Statistics

Apparently, Making America Great Again means destroying one of our most successful indust

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Little PINO TACO leads the gang who can’t think straight. If you belive they don’t now what they’re doing.