Economic Reality: Inflation, Unemployment, and AI Bubble

cartoonist Ted Rall and CIA whistleblower John Kiriakou catch you up on the one-two punch of Tuesday’s Democratic electoral sweep coupled with the understanding that voters blame Republicans for the shutdown, reduced SNAP benefits, the Obamacare benefits crisis and now, a looming crisis facing America’s aviation system.

• Supreme Court Seems Likely to Overturn Trump's Tariffs: The Supreme Court convenes intense oral arguments, probing Trump's invocation of the 1977 International Emergency Economic Powers Act (IEEPA) to slap sweeping tariffs on imports from dozens of countries, including China, Canada, and Mexico. Justices, including conservatives like Chief Justice John Roberts, Amy Coney Barrett, Neil Gorsuch, and Brett Kavanaugh, voice deep reservations about relying on declared emergencies for unchecked economic powers, questioning if such broad powers unconstitutionally delegate Congress's authority under the major-questions doctrine. As plaintiffs—ranging from toy importers in Illinois to Democratic-led states like Oregon—argue that erratic tariff announcements spike costs and sow uncertainty for businesses, the administration counters by citing historical precedents like Nixon's similar uses, framing a loss as "catastrophic" for U.S. economic health amid global trade wars. Markets rise on the SCOTUS news, signaling Wall Street’s displeasure with Trump’s trade policies.

• Crisis in the Skies: The FAA will reduce flights at dozens of major airports as early as tomorrow if no shutdown deal is reached, Transportation Secretary Sean Duffy announced. Ten percent of air traffic at 40 airports would be cut, though the details of which specific airports will be impacted was not revealed. “As we start to implement this draw down in service, it will be restricted to these 40 high volume traffic markets,” FAA Administrator Bryan Bedford said. “We’re going to ask the airlines to work with us collaboratively to reduce their schedules.” The “draw down in service” at these busy airports comes as air traffic control staffing shortages during the shutdown of have caused delays. Controllers are considered essential employees and must work during the shutdown, but are not being paid. Duffy has said some are calling in sick to work other jobs or as protest for not getting paid.

• White House Blamed for High Prices: As Democrats celebrate the elections, Republican analysts say voters are sending Trump a message: get your eye back on the ball—here in the States. Americans, gripped by economic discontent, prioritize affordability over immigration or culture wars, citing persistent inflation, 22% electricity rate hikes in New Jersey, federal workforce cuts impacting Virginia, and the 36-day government shutdown eroding food assistance and health subsidies. Allies like James Blair and Steve Bannon urge Trump to refocus on pocketbook promises—lowering prices, implementing job-creating investments, and addressing "inherited disasters" from Biden—echoing warnings from Rep. Marjorie Taylor Greene that neglecting economic populism invites electoral disaster heading into 2026 midterms.