A $2.2 trillion relief package for the U.S. economy — the biggest in history — probably won’t be enough.“By any measure, this is a huge stimulus package. One thing that it cannot stop is the recession that is coming,” said James McCann, senior global economist at Aberdeen Standard Investments. Continue reading.
As the coronavirus send the United States and the entire global economy hurtling toward recession, President Donald Trump and his defenders have claimed the administration’s policies have left the United States better prepared for the downturn. But in reality, the president’s effects on the course of the economy thus far have been greatly exaggerated, and many of his policies have actually put Americans at greater risk in the event of financial catastrophe.
To understand why Trump’s policies have put us at risk, you have to appreciate the best possible policy response to a recession: automatic stabilizers.
Many automatic stabilizers are actually very familiar to most people. The category includes, for example, SNAP (commonly called food stamps) and unemployment insurance. Continue reading.
The poll also shows a schism between Americans’ continued positive ratings of the economy and fears of a downturn, with far more saying Trump’s policies have increased chances of a recession than decreased it.
The White House is weighing cuts to corporate and payroll taxes, among other measures, to cushion the U.S. economy if an election-year recession hits.In public, President Donald Trump and top White House officials keep extolling the strength of the U.S. economy. In private, they’re increasingly worrying about a global economic slowdown triggering a U.S. recession — and weighing options to shore up the economy ahead of an election year.
At a fundraising luncheon this week in Jackson, Wyo., headlined by both Jared Kushner and Ivanka Trump, acting White House chief of staff Mick Mulvaney acknowledged the risks to the GOP elite behind closed doors. If the U.S. were to face a recession, it would be “moderate and short,” Mulvaney told roughly 50 donors, according to an attendee. Continue reading “Trump team braces GOP donors for a potential ‘moderate and short’ recession”
After rising on Tuesday, stocks tumbled on Wednesday. The Dow Jones Industrial Average fell more than 700 points on news that major European economies might be headed for recession.
At home, American analysts and investors have been spooked by President Donald Trump’s ongoing trade war with China, which has raised uncertainty about future investment and clearly triggered broader fears about macroeconomic stability. Looming over these worries is the fact of the inverted yield curve: 10-year bonds are now offering lower interest rates than 2-year bonds, a sign that investors are scrambling for somewhere safe to keep their money long term.
Economist Paul Krugman argued Wednesday that, while the world doesn’t appear to be facing a repeat of the 2008 financial crisis, the risk of a recession is indeed rising. And despite his boasts about his economic performance, Trump himself appears to be driving at least one major factor in the increased risk, while the GOP blocks potentially countervailing measures.
View the complete August 14 article by Cody Fenwick on the AlterNet website here.
