Trump’s Class War: Killing Worker Rights, Crushing Wages & Widening the Wealth Gap
Latest cuts aren’t about saving money—they’re about making workers too desperate to fight back.
On March 14, 2025, Donald Trump quietly signed an executive order just before midnight dismantling the Federal Mediation and Conciliation Service (FMCS) and the U.S. Interagency Council on Homelessness (USICH), two agencies vital to protecting workers and preventing homelessness.
This move wasn’t about “fiscal responsibility.” These agencies had a combined budget of just $27.9 million, a microscopic fraction of federal spending. This was something else: a deliberate, calculated attack on workers, economic mobility, and the last remaining public safety nets.
Just weeks after mass federal layoffs and amid economic turmoil, Trump’s cuts are part of a more significant effort to collapse the working class, force desperation, and solidify corporate control.
This is part of the Executive Order we broke yesterday:
Step 1: Mass Layoffs—The Death Knell for the Middle Class
For decades, federal jobs were one of the last strongholds of the middle class. They provided:
✔️ Stable pay
✔️ Union protections
✔️ Healthcare & pensions
✔️ A safeguard against private-sector exploitation
However, in just eight weeks, Trump’s administration has eliminated over 100,000 federal jobs, one of history's most extensive mass layoffs.
The IRS lost 25% of its workforce, gutting tax enforcement on the ultra-rich.
HUD slashed half its staff, crippling housing and homelessness programs.
Despite court orders to rehire workers, the administration refused to comply.
These layoffs weren’t just cuts; they were a strategic purge. They flooded the job market with highly skilled, desperate workers when the economy was already in crisis, driving wages down even further.
See our article on the attacks on federal workers here:
The Disappearing Middle Class
A strong middle class has built this nation’s wealth and strength for decades. But starting with the trickle-down myth of the Reagan administration, that great force has been whittled away. Each successive Republican administration has gutted it further.
During Trump’s first term, the COVID-19 pandemic exposed the middle class's fragility. Millions lost their jobs overnight, proving that most Americans were just one disaster away from poverty.
By gutting federal jobs—one of the last stable career paths—Trump has accelerated the death of the middle class. What remains is a two-tiered system: the ultra-rich and everyone else.
Step 2: Destroy Worker Protections So No One Can Fight Back
By eliminating FMCS, Trump has:
Made it harder for workers to negotiate fair contracts.
Weakened unions by removing a neutral mediator for labor disputes.
Ensured that when corporations abuse workers, there’s no federal oversight to step in.
This is in addition to his reinstatement of Schedule F, which strips federal workers of job protections and allows mass firings at will. He has also weakened OSHA, permitting corporations to place their workers in greater danger. And again and again, Trump has proven that he is no friend of the union.
The message is clear: workers have no power.
See our previous article on the gutting of OSHA here:
Step 3: Gut Homelessness Aid So Economic Desperation Becomes a Trap
With wages stagnating and jobs disappearing, more Americans are at risk of losing their homes. But rather than addressing the crisis, Trump abolished USICH, the only federal agency dedicated to homelessness coordination.
The impact:
More people lose their homes with no coordinated response to help them.
Fewer federal housing programs remain functional.
Cities and states are left scrambling with no national strategy.
Real-World Impact
In Montana, Trump’s Department of Government Efficiency (DOGE) cut 80% of the budget for a major fair housing program, making it nearly impossible to enforce tenant protections. (KXLF) Now, a late-night Executive Order has eliminated the agency that could potentially have helped mitigate the gulf left by the loss of this program and countless others.
This isn’t about money. USICH’s entire budget was just $3.6 million. This was about control, not cost-cutting.
See our previous report on the homelessness crisis in America here:
Step 4: The Real Goal: A Workforce Too Desperate to Fight Back
Why would a leader weaken the nation’s workforce? What is there to gain?
Mass layoffs = fewer stable jobs.
Weakened labor protections = more effortless exploitation.
Gutted homelessness programs = more people on the brink.
A flooded job market = wages stay low.
A tariff-crushed economy = few companies are hiring.
One would think corporations would lose their minds over lost sales as workers struggle to afford even their most basic needs, much less the many capitalistic treats they are selling—unless there is a larger game at play.
The Wealth Gap Is Growing By Design:
The top 10% of U.S. households now control 67% of all wealth, an average of $6.9 million per household.
The bottom 50% of Americans own just 2.5% of the nation’s wealth, about $51,000 per household.
(Federal Reserve Bank of St. Louis)
Trump’s economy doesn’t need a middle class anymore. It’s built on:
Luxury markets for the ultra-rich.
Cheap, desperate labor for everyone else.
A workforce in crisis is a workforce that won’t resist.
The Project 2025 Connection: This Was Always the Plan
This isn’t happening in a vacuum. It aligns perfectly with Project 2025, the far-right blueprint to:
Weaken worker rights (gut overtime pay, attack unions).
Destroy public safety nets (eliminate federal protections for the poor).
Consolidate wealth & corporate control.
We’ve covered Project 2025 before—read more here.
What Happens Next? Will Congress Fight Back?
Congress has the power to override Trump’s order. FMCS and USICH were created by Congress, meaning lawmakers can stop this—but only if they act.
But will they? Or will they let Trump rewrite labor laws by executive fiat?
Will Congress continue to cede its power?
The fight is still ongoing, but only if people demand it.
Contact your lawmakers. Spread the word.
This isn’t just another policy debate—it's about whether workers will have any rights left.
If they want a class war, they’ll get it.
We outnumber them.
They NEED our labor.
We don’t need their greed.
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Bibliography:
"Trump's next agency cuts include US-backed global media, library and museum grants" – Politico, March 15, 2025
"The State of U.S. Wealth Inequality" – Federal Reserve Bank of St. Louis, 2024
"DOGE cuts 80% from Montana Fair Housing budget" – KXLF, March 2025
"Trump poised to launch new round of layoffs despite setbacks in court" – Reuters, March 14, 2025
"Trump is still moving 'full steam ahead' on staffing cuts despite recent court orders" – Politico, March 14, 2025
"Here's Where Trump's Government Layoffs Are Targeted—As Judge Orders Reinstatement of Thousands of Fired Workers" – Forbes, March 13, 2025
"Trump administration sets stage for large-scale federal worker layoffs in new memo" – Associated Press, March 1, 2025
"Tracking Trump's overhaul of the federal workforce" – CNN Politics, March 15, 2025
"Is wealth inequality leading to a class war?" – Vox, March 9, 2025
"Ten facts about wealth inequality in the USA" – London School of Economics, January 2, 2025
"Economic Inequality Seen as Major Challenge Around the World" – Pew Research Center, January 9, 2025
"Wealth inequality reaches new heights: What the data says about America's future" – PsyPost, February 2025
"Charted: U.S. Wealth Held by the Bottom 50% (1989-2024)" – Visual Capitalist, February 2025
"Wealth distribution U.S. 2024" – Statista, November 2024
FDT
Thank you for your attention to this - democracy is dying a death by 10,000 cuts - sure, the big ones get SOME coverage, but actions like this one will have far-reaching impacts.