12: Shutdown Economics, AI Layoffs, and Trade Deals in Asia

from The Two-Handed Economist · host Rice University’s Baker Institute for Public Policy

John Diamond argues that the government shutdown has become an economic tax on ordinary Americans. Meanwhile, the Federal Reserve is heeding warning signals from the labor market as artificial intelligence and automation rewrite the rules for major industries, prompting companies like Amazon, UPS, and Intel to lay off thousands of workers. In other news, President Donald Trump is busy signing trade deals in China and Southeast Asia. But the deals’ actual value depends on how long they’re sustained. This episode was recorded on Oct. 29, 2025. Follow John Diamond on X (@jw_diamond) and LinkedIn. You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.

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