Donald Trump is stirring up a constitutional crisis in the United States, asserting extensive powers that could sidestep or even override Congress’s control over financial expenditures. This bold maneuver aims to consolidate financial authority within the executive branch. Nobel laureate Paul Krugman has cautioned that if Trump succeeds, it would effectively amount to a modern-day coup, shifting power away from elected officials. Beneath the surface of Trump’s trade war lies a more insidious issue: the hijacking of governmental control, and Krugman is spot on with this assessment.
Trump is attempting to claim the ability to shut down government programs at his discretion, even those approved by Congress. If he pulls this off, he could drastically cut federal spending and decrease taxes while feigning fiscal responsibility. However, this would essentially take resources from the less fortunate to benefit the wealthy elite. In an environment where economic language has been twisted to portray exploitation as “wealth creation,” Trump’s audacious strategy—and that of his loyal supporters—to profit personally is truly staggering. His outlook is straightforward: allow the wealthiest individuals free rein, with minimal oversight, resulting in substantial riches for a select few, while the quality of life declines for the majority.
Over the past weekend, Trump’s plan became more apparent when he dismissed a senior Treasury official who had been preventing his billionaire associate, Elon Musk, from gaining access to the federal payment system. This action potentially revealed sensitive personal data belonging to millions of Americans, as well as information about public contractors who are in direct competition with Musk’s enterprises. This system manages over $5 trillion annually, and according to analyst Nathan Tankus, Musk and his cohorts are “evidently seeking to redesign” it to align with the Trump agenda. This opens a path for the president to possibly retaliate against his political adversaries.
To understand the consequences, consider one of Trump’s initial actions: freezing trillions in federal expenditures, particularly in areas like foreign aid, nongovernmental organizations, “DEI initiatives,” “woke gender ideology,” and the “Green New Deal.” The judiciary blocked this move on grounds of unconstitutionality, yet not before it caused significant disruption to government agencies and nonprofit groups, especially those aiding at-risk populations like homeless veterans. Musk, on his part, claims intentions to shut down the US Agency for International Development (USAID), although this remains speculative as a federal entity is required by law to manage aid.
Much like his trade war endeavors, Trump’s assertion of “impoundment” power—the supposed unilateral right to halt spending—reveals the fundamental contradiction of his power grab: he acts like a monarch because he lacks the strength to lead as a president should. He imposes tariffs freely, circumventing Congress with “national security” justifications, yet negotiated an arrangement with Mexico that both parties presented as a triumph.
During his first term, Trump’s protectionist efforts—tariffs on China, a shake-up of NAFTA, and criticism of allies’ trade policies—were touted as transformative. In reality, it was a self-imposed setback. His administration levied $80 billion in new “taxes” on Americans through tariffs, only to witness supply chains shift to Vietnam and Indonesia instead of revitalizing domestic jobs. The ultimate toll? A 0.2% drop in GDP and 142,000 jobs lost, as reported by the Tax Foundation. Without substantial investment in domestic industries, the America First trade plan failed to rejuvenate US manufacturing—it merely increased costs. Trump’s chaos is not a sign of confidence—it reeks of desperation. He is attempting to fabricate power that he lacks in reality. The genuine threat lies in allowing his illusory power to be perceived as legitimate.
