Wages, War, and the World Stage
What has President Trump said this week?
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What has President Trump said this week? 〰️
1. Does the US really have the highest wages in history?
On June 17th, President Trump posted on Truth Social:
According to U.S. Treasury Secretary Scott Bessent, real wages for hourly workers rose nearly 2% in the first five months of Trump’s second term—the strongest early-term growth in 60 years. Bessent stated that Americans and businesses “have never had a stronger ally in the White House”. Bessent attributes the wage growth to falling inflation, Trump’s focus on manufacturing, and workforce tightening through immigration control (New York Post, 2025).
Does this account for inflation? Yes. According to the Bureau of Labor Statistics, real average hourly earnings increased 0.3% from April to May, driven by a 0.4% rise in wages and a 0.1% increase in the Consumer Price Index, consistent with recent inflation trends. However, wage gains remain concentrated in a few sectors—notably construction, energy, and logistics—while rising housing and healthcare costs continue to outpace income growth for many working families.
President Trump’s team says that if the “One Big Beautiful Bill” passes the Senate by July, it will deliver a "double whammy" of lower inflation and faster wage growth. The bill includes targeted relief for blue-collar workers, such as eliminating taxes on tips and federal income taxes on overtime pay for over 80 million hourly workers in industries like manufacturing, construction, and emergency services (New York Post, 2025).
2. Inviting Russia to the G-7 party
At the G7 summit in Canada on June 17, President Trump told world leaders that removing Russia from the group after its 2014 annexation of Crimea was a “big mistake” (The Washington Post, 2025). This stance marks a clear departure from current U.S. policy, which treats G7 coordination as essential for deterring Kremlin aggression. The Kremlin echoed Trump’s remarks, calling the G7 “useless” and voicing support for Russia’s reinstatement (Reuters, 2025).
While Trump’s comments drew international attention, the broader G7 consensus remains firmly opposed to Russia’s return. Economically, reopening the membership debate could unsettle markets that rely on Western cohesion in enforcing sanctions on Russia and managing tensions with China. Trump’s suggestion also raises questions about expanding the group to include powers that challenge the Western-led order, potentially disrupting existing trade agreements and strategic coordination frameworks.
Trump ultimately cut his G7 visit short, citing the need to return to Washington early to monitor the escalating Israel-Iran conflict, adding further uncertainty to a summit already marked by global security concerns (CNN, 2025).
3. Iran, Israel, and the U.S.?
On June 17, President Trump called for Iran’s “unconditional surrender” in a Truth Social post, as the conflict between Iran and Israel entered its sixth day. In an interview, he said: “I may do it. I may not do it. Nobody knows what I'm going to do” (MSNBC, 2025), referring ambiguously to potential U.S. military action in support of Israel. While he emphasized U.S. support for Israel and noted that Iran had reached out for talks, Trump declined to confirm whether American forces would directly engage in the conflict—an issue closely watched by global observers.
Trump met with his national security team in the White House Situation Room for the second time in two days, as the administration began preparing evacuation plans for U.S. citizens in Israel, including via flights and cruise ships (CNBC, 2025). Reports also indicate that Trump vetoed an Israeli plan to assassinate Iran’s Supreme Leader, Ayatollah Ali Khamenei, and confirmed that the U.S. has intelligence on his whereabouts (Reuters, 2025), suggesting a cautious approach to direct involvement.
Despite this, Trump’s call for surrender added to global uncertainty, triggering a spike in oil and gold prices and unsettling financial markets (Reuters, 2025). Analysts warn that such rhetoric could escalate geopolitical risk and disrupt global energy supplies.