G20 pushback on the US economic model, and Venezuela oil deal questions
Other governments rejected Washington's "be more like America" pitch at the G20, and the details behind it look bad for US workers and consumers.
- Allies pushed back on the US model at the G20, complaining about tariffs and the Iran war instead of copying deregulation.
- US companies are cutting staff and leaning on automation, with Uber axing 10% of its workforce, its biggest cut since the pandemic.
- Employer health costs are set to jump 11% next year, far above the usual increase, so workers face higher premiums or thinner benefits.
- Rising government borrowing costs are pushing up mortgages, car loans, and rents, with interest payments now bigger than defense spending and near 4% of GDP — the highest of any rich country.
- The Venezuela oil deal drew fire at home and abroad: Washington calls itself a "passive partner," but there is no election date and Venezuela still owes China billions.
Outlook: With the deficit driving long-term interest rates, borrowing costs and household bills are likely to keep climbing, while the Venezuela arrangement stays contested.