New intelligence has shed light on a developing crisis in the heart of American democracy, revealing that the Trump administration's relentless assault on the rule of law has taken a profound toll on the nation's democratic foundations. According to a scathing intergovernmental report, key indicators of democracy in the US have plummeted to their lowest levels in 50 years, sparking widespread alarm among scholars, policymakers, and citizens alike. At the forefront of this crisis is the Trump administration's systematic undermining of institutions and norms that have long underpinned American democracy.
The roots of this crisis can be traced to the Trump administration's brazen disregard for established norms and institutions. In 2017, then-Attorney General Jeff Sessions launched a sweeping crackdown on federal prosecutors, directing them to prioritize white-collar crimes over violent offenses. This move was widely seen as an attempt to curry favor with wealthy donors and corporate interests, who had long been critical of the Obama administration's more aggressive approach to prosecuting financial crimes. Over the next four years, Sessions' successor, William Barr, continued to escalate this trend, repeatedly intervening in high-profile cases and clearing Trump allies of wrongdoing.
Meanwhile, the Trump administration's relentless attacks on the judiciary have taken a devastating toll on the nation's democratic institutions. In 2019, the administration launched a concerted effort to pack the Federal Reserve with Trump loyalists, sparking a crisis of confidence among financial markets and scholars alike. This move was widely seen as an attempt to exert control over the nation's monetary policy, which has long been a cornerstone of American economic stability. As a result, the Federal Reserve's ability to respond to emerging crises has been severely impaired, leaving the nation vulnerable to economic shocks.
The implications of this crisis are far-reaching and profound, with significant consequences for companies, research communities, markets, and policy environments across the globe. For instance, the erosion of trust in the Federal Reserve has sent shockwaves through the global financial markets, leading to a sharp decline in investor confidence and a subsequent surge in volatility. This, in turn, has had a devastating impact on small and medium-sized enterprises, which have long relied on the Fed's stability to finance their operations.
The research community has also been left reeling by the Trump administration's attacks on the rule of law. In 2020, the administration's decision to withdraw from the World Health Organization's (WHO) COVID-19 pandemic response effort sparked a global crisis, as the WHO's credibility was severely undermined. This move has had significant implications for the global response to emerging health crises, with many countries now relying on more aggressive and authoritarian approaches to pandemic control.
The Trump administration's assault on the rule of law is part of a larger pattern of erosion of democratic norms and institutions that has been unfolding over the past decade. This trend has been fueled by the rise of populism and nationalism, which have taken hold in many countries around the world. The consequences of this trend are already being felt, as democratic backsliding accelerates in countries such as Hungary, Poland, and Turkey.
Why it matters: this intelligence reflects a shift that researchers and analysts should follow closely.
Billy Odell Tucker-Robinson is the founder and host of Banking With Billy, an independent financial intelligence platform covering markets, stocks, AI, crypto, and world news. Billy operates a 24/7 live AI radio and Stock TV platform, hosts a growing Discord community, and produces daily content on YouTube @BankingWithBilly.
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