Trump’s Good and Bad Economy & Canada In Crisis | 5.5.25

Summary

Morning Wire Podcast Summary Episode: Trump’s Good and Bad Economy & Canada In Crisis | 5.5.25 Release Date: May 5, 2025

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Introduction

In this episode of Morning Wire, Hosts John Bickley and Georgia Howe delve into multifaceted topics affecting the current socio-political and economic landscape. The discussion spans President Donald Trump's economic policies, the recent tumult in public broadcasting funding, and the escalating political crisis in Canada. The episode provides an in-depth analysis supported by expert insights and notable quotes, offering listeners a comprehensive understanding of these critical issues.

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Trump's Economy: Achievements and Challenges

Economic Performance Under Trump vs. Biden

President Donald Trump begins the discussion by touting the strengths of his economic policies while critiquing the Biden administration. At [00:08], Trump asserts, “The good parts of the Trump economy and the bad parts are the Biden economy because he's done a terrible job. He did a terrible job on everything.” This sets the tone for the episode's exploration of the contrasting economic performances under the two administrations.

Stock Market Rally and Job Reports

Cabot Phillips, Daily Wire Senior Editor, provides a detailed analysis of the stock market's recent behavior. At [01:49], Phillips notes, “After a tough few weeks, markets have now taken a bullish turn. On Friday, the Dow, Nasdaq and S&P 500 all jumped about a point and a half.” He highlights that the S&P 500 achieved its longest winning streak in 20 years, reflecting investor optimism fueled by better-than-expected job reports and positive sentiment towards trade deals.

April Jobs Report and Employment Trends

The April jobs report exceeded expectations, with [01:34] Phillips stating, “Economists had predicted there'd be 133,000 jobs added in April, but that number came in at 177,000.” This 33% higher-than-expected job growth, particularly among American-born workers and the private sector, underscores a robust labor market. Phillips contrasts this with the Biden era, where job growth was largely attributed to foreign-born workers, emphasizing a shift towards domestic employment under Trump’s policies.

Trade Relations with China

The episode delves into the evolving trade dynamics with China. Initially, China signaled a willingness to endure a prolonged trade war, but recent developments suggest a potential de-escalation. At [03:37], Phillips discusses China's Commerce Ministry's openness to dialogue: “if the US Wants to talk, our door is wide open.” He connects this shift to broader economic strategies and mutual interests, including China’s consideration of cracking down on fentanyl production to demonstrate goodwill.

Economic Concerns Amidst Optimism

Despite positive indicators, Phillips highlights lingering economic concerns. At [04:54], he mentions, “the median duration of unemployment for those out of work rose last month, while consumer spending dipped from 4% last quarter to 1.8% this quarter,” signaling tightening consumer budgets. Additionally, the economy's contraction of 0.3% in Q1—“the first quarterly contraction we've seen since 2021”—raises alarms about the sustainability of recent gains.

President Trump's Optimism

Trump remains optimistic despite these challenges. At [05:41], he remarks on the resilience of the economy: “The tariffs are going to make us rich. We're going to be a very rich country.” This unwavering confidence underscores the administration’s narrative of economic strength and resilience.

Warren Buffett’s Retirement

A significant development in the financial world is Warren Buffett’s retirement. At [06:04], Phillips reports, “Warren Buffett did announce his retirement this weekend. He'll be stepping down as CEO of Berkshire Hathaway.” Buffett’s departure marks the end of an era, with his successor Greg Abel poised to lead the trillion-dollar investment firm, potentially signaling shifts in investment strategies moving forward.

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Defunding Public Broadcasting: NPR and PBS Under Fire

Trump’s Executive Order to Defund NPR and PBS

A pivotal moment in this episode is the discussion surrounding President Trump’s executive order to defund major public broadcasting entities. At [07:34], Megan Basham explains, “the president signed an executive order to eliminate about 535 million annually to NPR and PBS and other public media.” This move aims to sever taxpayer funding, which Trump argues is essential to maintain journalistic independence.

Reactions from Public Broadcasting Leaders

The executive order has sparked immediate backlash from leaders of NPR and PBS. At [08:40], Patricia Harris, CEO of the Corporation for Public Broadcasting, asserts, “the company is not subject to the president's authority. Only Congress can end it.” Similarly, Paula Kerger, president of PBS, describes the order as “blatantly unlawful” and emphasizes their intent to pursue all legal avenues to block its implementation.

Accusations of Bias and Legal Battles

The administration has targeted NPR CEO Catherine Marr by highlighting past controversial statements and actions, suggesting liberal bias within the organization. Basham details instances such as Marr’s 2018 tweet labeling Trump as a “racist” and the suspension of whistleblower Yuri Berliner, who claimed NPR dismissed the Hunter Biden laptop story. At [09:14], Basham states, “Yuri Berliner exposed NPR's dismissal of the Hunter Biden laptop story and its focus on diversity initiatives over balanced reporting,” fueling the administration’s narrative of media bias.

Legal Implications and Future Proceedings

Both NPR and PBS are gearing up for a legal showdown. As stated by Basham at [09:20], “Both PBS and CPB say that they are going to pursue all legal options to block Trump's order.” The legal battle will likely center on the constitutional authority to defund public broadcasting and the underlying accusations of bias, setting the stage for a significant confrontation between the administration and media institutions.

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Canada in Crisis: Political Turmoil and Secession Sentiments

Election Results and Political Climate

The podcast shifts focus to Canada’s political landscape, highlighting a precarious situation under Prime Minister Mark Carney. Tim Pierce, Daily Wire Reporter, provides insights into the recent election where Carney’s Liberal Party secured a leadership victory but failed to achieve a majority. At [11:12], Pierce remarks, “The Liberal surge in the polls happened around the same time that Trump started floating the idea that Canada should become America's 51st state,” indicating external pressures exacerbating internal tensions.

Secession Sentiments in Canadian Provinces

There is a growing movement for secession in several Canadian provinces, particularly in the west. Pierce elaborates at [11:41], “Many Canadians, particularly on Canada's more densely populated east, rallied around Carney as the best man to take on Trump. But recent polling suggests that some Canadians would rather be a part of the US or their own independent country rather than remain under a Liberal government.” Notably, 30% of voters in Alberta and Saskatchewan support secession, echoing longstanding but currently resurgent separatist sentiments.

Economic Drivers of the Divide

The divide between the coastal and interior provinces is largely economic. Pierce explains at [12:54], “The interior tends to be more conservative... Canadian conservatives are mainly concerned with economics, but are still liberal on social issues.” The prairie provinces' reliance on resource extraction—such as oil and gas—conflicts with the federal government's environmental policies, including pipeline restrictions and net-zero initiatives advocated by Carney.

Legislative Actions and Future Prospects

Efforts to formalize secession are underway, though no provinces have taken official steps yet. At [14:21], Pierce notes, “Alberta Premier Danielle Smith put forward legislation that would significantly lower the signature threshold for citizen-led referendum.” This legislative move could empower provinces to hold referendums on secession, increasing the likelihood of significant political shifts depending on the outcomes of negotiations and public sentiment.

Impact of Environmental Policies

Environmental policies also play a crucial role in fueling the divide. Former Prime Minister Justin Trudeau’s initial stance on phasing out fossil fuels, later adjusted due to public and political pressure, highlights the ongoing conflict between economic interests and environmental commitments. At [13:51], Pierce states, “Carney has been a vocal advocate for net zero policies and was a leading figure in the ESG movement,” suggesting that these policies may continue to strain relations with economically dependent provinces.

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Conclusion

The Morning Wire episode provides a thorough examination of the current economic landscape under President Trump, the contentious move to defund public broadcasting, and the emerging political crisis in Canada. Through expert interviews and direct quotes from key figures, the podcast delivers a nuanced perspective on these complex issues. Listeners are left with a clear understanding of the dynamic interplay between economic policies, media independence, and international political tensions shaping today's societal fabric.

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Notable Quotes:

• Donald Trump [00:08]: “The good parts of the Trump economy and the bad parts are the Biden economy because he's done a terrible job. He did a terrible job on everything.”

• Donald Trump [05:41]: “The tariffs are going to make us rich. We're going to be a very rich country.”

• Donald Trump [09:00]: “If you think PBS is biased compared to who, name one news organization in America.”

• Tim Pierce [11:12]: “The Liberal surge in the polls happened around the same time that Trump started floating the idea that Canada should become America's 51st state.”

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This comprehensive summary encapsulates the key discussions, insights, and conclusions presented in the Morning Wire episode, providing an informative overview for those who have not listened to the full podcast.

Transcript

[Georgia Howe]

President Trump takes a victory lap as the economy shows signs of improvement.

[Donald Trump]

The good parts of the Trump economy and the bad parts are the Biden economy because he's done a terrible job. He did a terrible job on everything.

[Georgia Howe]

I'm Georgia Howe. John Bickley is off today. It's Monday, May 5th. And this is Morning Wire. NPR and PBS threaten legal action after Trump ends their taxpayer funding. There will be a shrinking of the system.

[Cabot Phillips]

Will it die?

[Georgia Howe]

Absolutely not. And is Canada's new liberal government already showing signs of weakness?

[Megan Basham]

Canada is in crisis.

[Cabot Phillips]

Mark Carney is in, but the country is on the edge.

[Georgia Howe]

Thanks for waking up with MORNING wire. Stay tuned. We have the news you need to know.

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[Georgia Howe]

After a tumultuous month, stocks are rallying following a better than expected jobs report and optimism about trade deals. Daily Wire senior editor Cabot Phillips joins us now to discuss. So, Cabot, Wall street has had a wild few weeks. Where do things stand now?

[Cabot Phillips]

Yeah, wild to say the least. After a tough few weeks, markets have now taken a bullish turn. On Friday, the Dow, Nasdaq and S&P 500 all jumped about a point and a half. The S and P saw its ninth straight day of gains. That's its longest winning streak in 20 years. Overall, the Dow is now within 2% of where it was when Trump kicked off his liberation Day tariffs. And the s and P500 and Nasdaq are actually higher than they were before. Now, markets have been fickle. There's always a good chance those gains are erased in a day or two. But there's no doubt this is a.

[Georgia Howe]

Remarkable recovery we've seen and the administration is touting this as a success.

[Cabot Phillips]

Yeah.

[Georgia Howe]

So what caused that turnaround?

[Cabot Phillips]

So first, the April jobs report came out Friday and showed a lot more growth than we'd expected. Initially, economists had predicted there'd be 133,000 jobs added in April, but that number came in at 177,000. So 33% higher than expected. Unemployment also held steady and hourly wages saw a 4% increase from the same month last year. So all good news for investors. And zooming out, it's worth noting who exactly those jobs are going to remember. Under President Biden, foreign born workers added nearly four and a half million jobs. But over that same four year time frame, the number of American born workers actually fell. So all of the net job growth from 2021 to 2024 in the U.S. was concentrated among folks born outside of the U.S. but in April, the number of foreign born workers decreased. Meaning all of the net job growth we saw last month was among American born workers. And it was also concentrated in the private sector. As government employment declined for its third straight month. You can see Doge really kicking the gear.

[Georgia Howe]

So it sounds like employers are hiring despite the tariffs.

[Cabot Phillips]

Yeah, at least more than we were expecting.

[Georgia Howe]

And it's Americans, it looks like.

[Cabot Phillips]

Yes, exactly.

[Georgia Howe]

Now, there's also been some movement on the China front. What's happening there?

[Cabot Phillips]

So at the start of last week, China was projecting a clear willingness to dig in for a long trade war and weather the economic storm. They were trying to force the US to blink first. The Communist Party said they were prepared to increase payouts for the unemployed, subsidize new housing projects, and incentivize their own people to buy more domestic products. But on Friday, we saw our first real sign that Beijing was open to de escalation, with the country's Commerce Ministry saying, quote, if the US Wants to talk, our door is wide open. As a sign of that new willingness to strike a deal, the Wall Street Journal reported that Beijing is weighing a potential crackdown on fentanyl production as a show of goodwill to the US They've also been reaching out for details from the White House on what they're looking for. Remember, China produces the vast majority of the chemicals used in making fentanyl. They then ship it over to Mexico and other countries where it is trafficked in by cartels and others. Investors took that report as evidence that Beijing was looking for an off ramp and markets responded accordingly. Here's Trump speaking to Chinese tariffs on Meet the Press Sunday.

[Donald Trump]

At some point I'm going to lower them because otherwise you could never do business with them. And they want to do business very much. Look, their economy is really doing badly. Their economy is collapsing, but it hasn't.

[Georgia Howe]

Been all good news on the economic front. What are some of the concerning signs that came out of that jobs report.

[Cabot Phillips]

Yeah, it's certainly been a mixed bag on the economic front. Those labor numbers did show that the median duration of unemployment for those out of work rose last month, while consumer spending dipped from 4% last quarter to 1.8% this quarter. So folks getting a little tighter with their money. And most concerning, we learned that last week the US economy shrank in quarter one by 0.3%. That is the first quarterly contraction we've seen since 2021. That decline was driven by a surge in imports as American companies were rushing to try and bring in as many goods as possible before Liberation Day took place. And typically a higher ratio of imports to exports leads to a falling gdp. Now, for his part, President Trump continued to express optimism that this is a minor disruption for a major economic revolution. Here he is again, Sunday stock market.

[Donald Trump]

Look at what's happened in the last short period of time. Didn't it have nine or 10 days in a row or 11 days where it's gone up and the tariffs have just started kicking in and we're doing really well psychologically? I mean, the fake news was giving me such press on the tariffs. The tariffs are going to make us rich. We're going to be a very rich country.

[Cabot Phillips]

And while we're talking about Wall street, we have to mention the legendary investor. Warren Buffett did announce his retirement this weekend. He'll be stepping down as CEO of Berkshire Hathaway. The 94 year old says he'll still be hanging around but will pass his responsibilities to Greg Abel will now take over the trillion dollar investment fund. So big shoes to Phil.

[Georgia Howe]

Well, and Buffett has been famously anti tariff so we'll have to see if his last predictions come true.

[Cabot Phillips]

Yep.

[Georgia Howe]

Cabot, thanks for reporting.

[Cabot Phillips]

Absolutely.

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[Georgia Howe]

President Trump signed an executive order Thursday defunding public broadcasting giants NPR and pbs. Both outlets are promising to fight the order in court. Joining us with the details is Daily Wire culture reporter Megan Basham. So, Megan, first, why is Trump pulling funding from these organizations?

[Megan Basham]

Well, you know, President Trump has made it very clear for some time that he's no fan of public broadcasting. Just recently, he posted that Republicans must defund and totally disassemble, dissociate themselves from NPR and pbs, the radical left monsters that so badly hurt our country. So close quote, of course, there. And he said that taxpayer funding of media networks is not only outdated and unnecessary, but corrosive to the appearance of journalistic independence. Well, on Thursday, he made that policy official. The president signed an executive order to eliminate about 535 million annually to NPR and PBS and other public media. But in a statement Friday, Patricia Harris, president and CEO of the Corporation for Public Broadcasting, immediately shot back at this, saying that the company is not subject to the president's authority. She says Congress authorized the funding so only Congress can end it. Paula Kerger, president of pbs, also put out a statement. She called Trump's order blatantly unlawful. This is what she told PBS NewsHour last week.

[Georgia Howe]

This is probably the most difficult and serious threat in the time that I've been in public broadcasting, this idea that funds that had already been put aside for public broadcasting would be taken away.

[Megan Basham]

One of PBS star personalities, writer David Brooks, has also been out defending his employer. This is what he said Friday.

[Donald Trump]

If you think PBS is biased compared to who, name one news organization in America. And I shouldn't be defending because I get paid by pbs, but I'm going to do it. Who's more straight down the line than we are?

[Megan Basham]

Both PBS and CPB say that they are going to pursue all legal options to block Trump's order.

[Georgia Howe]

So both threatening legal action. Now, NPR CEO Catherine Marr has kind of been the public face of Republicans argument for defunding. What is she saying?

[Megan Basham]

Yeah, and the administration and its allies have really zeroed in on her past statements, like a 2018 X post that called Donald Trump a racist. Now, she later deleted that. But in 2022 in a Ted Talk, she also suggested that a reverence for the truth can be a distraction from positive social change. So I would say that she's not as out front as the others, likely because of her past public comments and associations. But she also put out a statement indicating that NPR is going to fight this in court.

[Georgia Howe]

Now, besides Mars comments, what other evidence is the administration pointing to to demonstrate liberal bias you know, I would say.

[Megan Basham]

That maybe the most noteworthy item here is Yuri Berliner. He exposed NPR's dismissal of the Hunter Biden laptop story and its focus on diversity initiatives over balanced reporting. So Berliner's suspension after his whistleblowing especially fueled that feeling that NPR has been silencing non leftist voices. This is what he told the Free Press last year.

[Producer Brandon]

I think after a while we started covering Trump in a way that like a lot of the legacy news organizations that we were trying to damage his presidency.

[Megan Basham]

So no doubt a lot of that evidence is going to end up in court.

[Georgia Howe]

Well, it'll be very interesting to see how the courts rule. Meghan, thanks for reporting.

[Megan Basham]

My pleasure.

[Georgia Howe]

Election season may be over in Canada, but the political drama is just beginning. Last week, Mark Carney led his Liberal Party to a stunning comeback, but fell just short of a majority. Joining us to make sense of Canada's politics is Daily Wire reporter Tim Pierce. So, Tim, what can we learn from Canada's election results?

[Tim Pierce]

Hey, Georgia. The Liberal Party of Canada has been in power for nearly 10 years. Last week marked their fourth consecutive win with Mark Carney as prime minister. But they aren't nearly as popular as that showing would lead you to believe. Carney's predecessor, Justin Trudeau, was so unpopular that he had to step down to avoid a total electoral blowout. And the Liberal surge in the polls happened around the same time that Trump started floating the idea that Canada should become America's 51st state. Carney will visit the White House Tuesday and is looking forward to a productive conversation.

[Cabot Phillips]

I go there with, with the expectation of constructive, difficult but constructive discussions. That's the spirit of, of the conversations that the president and I had.

[Tim Pierce]

Many Canadians, particularly on Canada's more densely populated east, rallied around Carney as the best man to take on Trump. But recent polling suggests that some Canadians would rather be a part of the US or their own independent country rather than remain under a Liberal government. Three in 10 voters from Alberta and roughly one in three from neighboring Saskatchewan said that they would support leaving the country if Carney won. At least 20% in each province would have supported secession even if he lost.

[Georgia Howe]

So how seriously, though, should we take those numbers? I mean, 30% is not anywhere close to a majority.

[Tim Pierce]

That's true. But it's also worth noting that Quebec, a province with a large, influential, openly separatist party, also reported that 30% support for separation Keis. Separatists have existed for centuries, and the block kea has been a major force in Canadian politics for decades. By contrast, Western Separatism is younger, less organized, and so far has been more of a grassroots phenomenon. But as of now, it appears to be just as intense.

[Georgia Howe]

So what's driving the divide between the coasts and the interior?

[Tim Pierce]

There are many factors, but most of them are economic. The interior tends to be more conservative. It's worth noting though, that Canadian conservatives are not alike. Conservatives in the U.S. in Canada, they're mainly concerned with economics, but are still liberal on social issues. So Canada's prairie provinces are younger, wealthier, less densely populated, and more dependent on resource extraction, mining, drilling, exporting oil. That's put them into conflict with the federal government, which has taken steps to restrict the construction of pipelines and refineries. Conservative leader Pierre Poiev made that a major issue during the campaign.

[Cabot Phillips]

Canada is selling oil and gas at.

[Producer Brandon]

A massive price discount to American refineries and LNG plants that are able to.

[Cabot Phillips]

Massively profit at our expense.

[Producer Brandon]

It is a rip off.

[Cabot Phillips]

We're ripping ourselves off with this approach. We because of fanatical and stupid environmental.

[Producer Brandon]

Extremists in the Liberal government and throughout the country.

[Tim Pierce]

Former Prime Minister Justin Trudeau went as far as to argue for phasing out the production of fossil fuels entirely before Western outcry forced him to walk that position back. Carney has also been a vocal advocate for net zero policies and was a leading figure in the ESG movement when he worked in the financial sector. He also was an economic advisor to Trudeau, leading many skeptics to fear his government would be more of the same.

[Georgia Howe]

So it sounds like there's a big wedge between some of these provinces and the federal government. Have any of them taken concrete steps to break away right now?

[Tim Pierce]

Not officially. Last week, Alberta Premier Danielle Smith put forward legislation that would significantly lower the signature threshold for citizen led referendum. As of now, that legislation has been tabled and Smith and Carney are currently in talks which are reportedly going well. However, the possibility of secession appears to be a major piece of leverage and as of now, that's still on the table.

[Georgia Howe]

Well, we'll have to see how Carney handles it and how his meeting with Trump goes. Tim, thanks for reporting.

[Tim Pierce]

Thanks for having me.

[Georgia Howe]

Thanks for waking up with us. We'll be back tomorrow morning with more news you need to know.