The Blubber

Treasury Secretary Outlines Plan to Shift Laid-Off Federal Workers Into Manufacturing Jobs

Treasury Secretary Scott Bessent said the Trump administration intends to grow U.S. manufacturing employment by redirecting laid-off federal workers into factory jobs—part of a broader strategy combining steep import tariffs with a slimming down of the federal workforce.

In an interview with Tucker Carlson, published Friday on the social platform X, Bessent said the administration believes the country has enough available labor to meet the demand created by Trump's new industrial policy.

“On one side, the president is reordering trade,” Bessent said. “On the other side, we are shedding excess labor in the federal government, and bringing down federal borrowings.”

“That will give us the labor that we need for the new manufacturing,” he added, arguing that artificial intelligence and automation would reduce the overall number of workers required.

Bessent asserted that combining protectionist trade policy with cuts to federal employment would shift economic influence away from government bureaucracy and back toward the private sector. He also claimed—without evidence—that the private sector was in recession during the Biden administration, despite a period of robust job growth.

“It’s almost like when a bodybuilder is taking steroids,” he said. “Outside, it looks great. You’re muscular. Inside, you’re killing your vital organs. That’s what was going on here.”

Markets Reel From Trump’s Tariff Shock

Bessent’s comments came at the end of a punishing week for financial markets, which were rocked by Trump’s sweeping new tariff plan and mounting anxiety over its potential fallout.

All three major U.S. stock indexes have plunged more than 15% from their post-election highs. On Friday alone, the Dow Jones Industrial Average dropped over 2,200 points.

Last week, Trump announced a new wave of tariffs—up to $600 billion worth—on foreign imports, scheduled to take effect Wednesday. The announcement sent stocks tumbling and raised fears of rising prices for key goods and broad disruptions to global trade.

Business and consumer confidence has sharply declined amid the growing uncertainty. Even manufacturers, who stand to benefit from trade protections, have voiced concern over the rising costs of production due to more expensive imported inputs.

Adding to the confusion, Trump and his economic team have delivered mixed messages about the goals and scope of the tariff strategy—further rattling investors and business leaders alike.