A new scientific study finds that climate change has reduced average American incomes by more than 12% since 2000, largely because higher temperatures and extreme heat have cut worker productivity, harmed crop yields, and raised health-related costs across the United States. The research underscores the economic cost of warming even before factoring in future climate impacts.

📉 Trump’s Anti-Climate Policy Stance

Despite this mounting evidence, former President Donald Trump continues to oppose key climate policies. He has criticised renewable energy as costly and rolled back environmental protections aimed at cutting greenhouse emissions. Moreover, he withdrew the US from major international climate agreements and weakened rules on vehicle and industrial emissions, according to the report. Critics say these policy shifts risk deepening economic losses tied to climate damage.

🔍 How Climate Affects the Economy

The study highlights several pathways through which climate change reduces incomes. First, higher temperatures lower productivity in sectors such as agriculture, construction, and manufacturing, where heat stress hampers workers’ capacity to perform. Consequently, output drops and wages stagnate. Second, heat-related illness increases health-care costs and reduces working hours. Meanwhile, agricultural losses from drought and heatwaves shrink earnings for farmers and ripple through supply chains.

Economists involved in the research also noted that climate effects are not isolated geographically. For example, heat-linked crop failures in one region can raise food costs nationwide. Therefore, damages in one area can reduce national income through interconnected economic networks.

📊 National Debate Over Climate and Economy

At the same time, critics argue that ignoring climate policy weakens long-term economic growth. They maintain that climate action — including renewable energy deployment and emissions limits — can simultaneously protect the environment and foster economic stability. Meanwhile, supporters of Trump’s policies emphasise short-term cost savings and reduced regulatory burdens for industry.

The debate has intensified as Americans face rising costs of living and growing climate risks. As a result, climate advocates are calling for policies that account for both economic and environmental outcomes, including investments in green infrastructure and energy efficiency.

📌 Broader Policy Implications

While the study focused on historical income impacts, its authors and observers warn that the economic toll could grow if climate policies remain weakened. They say that long-term prosperity depends on both cutting emissions and adapting to a changing climate, especially as heat waves, floods, and droughts increase in frequency and severity.