Mr. Trump knew the September economic numbers wouldn’t confirm his claim the U.S. economy is in great shape. Trump associated the low and inaccurate unemployment numbers and a recent report that claimed Americans make more money today than at any time in history. Mr. Trump didn’t talk about the Gross Domestic Product growth slippage in the third quarter. And he didn’t talk about the slowdown in retail sales in September.
The consumer sector of the economy accounts for seventy percent of Gross Domestic Product growth. The other sectors business, tech, science, and government stopped contributing to positive GDP growth when Trump decided to tariff-screw the world.
Business development stopped when Trump declared an economic war with China. Chinese products play an important role in fueling economic growth in both countries. Adding tariffs to Chinese products slowdown retail sales and hurt Chinese manufacturing. According to MarketWatch, Americans will pay $2,000 in additional taxes disguised as tariffs in 2020.
China’s Domestic Growth Product growth in 2018 was more than 6.2 percent. The war with Trump hurt the manufacturing sector as well as the tech sector when he banned Huawei from doing business in the United States. According to the International Monetary Fund, China’s GDP growth will be 6.0 percent at the end of the year thanks to Trump’s quest to make China his trade bitch.
U.S. GDP growth at the end of 2018 was 3.2 percent, according to government numbers. The International Monetary Fund put U.S. growth at 2.0 or less at the end of December. Most of that growth loss is due to Trump’s domestic and foreign policy decisions, according to the New York Times.
Mr. Trump’s recent decision to pull troops out of Syria is another example of the government waste that follows Trump’s disruptive decisions. The 2019 budget deficit is out-of-control thanks to the Trumpster. Those hidden government costs take a toll on America’s economic growth, even though Trump claimed he would balance the budget in his first term, but his incompetence will add $4 trillion to the national debt over the next fours.
The first cracks in Trump’s claim his budget is on fire surfaced in September. Retail sales dropped. But the housing market is still in good shape, according to the Commerce Department. The Feds may cut interest rates at the next meeting to stop some economic bleeding. But an interest rate cut may not be the solution, according to MarketWatch.
Dil Bole Oberoi
