Donald Trump’s economy
While the whole country was talking about the presidential debate yesterday, the Bureau of Economic Analysis (BEA), part of the U.S. Department of Commerce, released its “third revised” estimate of Gross Domestic Product (GDP) demonstrating that the U.S. had a record-setting 31.4 percent economic contraction in the second quarter of 2020. This follows a five percent GDP decrease in the first quarter of 2020. In short, under any reasonable definition, we’re in the midst of the Trump Recession.
Moreover, the Trump Recession, including many retail bankruptcies and closures, was caused, or at least made worse and longer, by the lack of an effective national COVID response by Donald Trump and his Republican apologists. As has been well-documented, Trump and Republican politicians downplayed the Coronavirus pandemic, did not help provide enough crucial supplies and equipment, ordered businesses and public venues to be closed too late (if at all), and pressured states and local governments to reopen too early. This was not just one of the worst decisions in history in terms of public health, morality and government, but also one of the worst economic and political blunders in history. Failing to take COVID seriously in order to “boost the economy” did the opposite.
Because of such premature reopenings that continue to jeopardize our health and safety, presumably the GDP numbers for the third quarter that just ended yesterday will be better than the second quarter’s record-setting decline. Indeed, the BEA will release its “advance estimate” for third quarter GDP on October 29. If the numbers are improved over the second quarter (and let’s hope they are), look for the Republicans to tout such improving numbers as their “October Surprise” for the 2020 elections. However, Democrats cannot let Trump and the GOP turn such expected improvement into some talking point about a “great economy” or “fantastic turnaround.” If your bank account or stock portfolio decline by over 36 percent in two quarters, and then they come back 10 percent, 15 percent or even 20 percent, you would not say your wealth is “growing fabulously” or that you’re doing “better than I have in decades.” No, you would say that your personal wealth is still way down. That is clearly the case with America’s economy.
Photo by Phillip Pessar, used under Creative Commons license. https://is.gd/j2G8qS
