The Commerce Department reported U.S. Manufacturing declined 14.4% in March, the second largest decline on record. April's manufacturing data is expected to drop also, as one Associated Press Economics writer, Eaul Wiseman reported, "President Trump's trade war with China had raised cost and created uncertainty that paralyzed investment decisions."
And on another front the federal government reported the GDP for the first quarter declined at a 4.8% annual rate. It was the sharpest drop since the 8.4% drop in the fourth quarter of the 2008 economic recession. The large decline in the first quarter took place even though the shutdown did not take place until mid March. The report also warned that the second quarter GDP decline would be much larger. The European countries GDP for the same first quarter shrunk 3.8%. The possibility exist that the year 2020 will end with a negative GDP.
Both President Clinton and Obama inherited an economic recession from the previous administrations and adopted plans and policies that turned things around for the better, and they did it with out massive tax cuts. Now President Trump has an economy in recession, partly of his own making that began on his watch and a 2017 tax cut that can not fit the bill of being positive for the economy. The Trump tax cuts was the third strike against the trio's trickle down economics fairy tale. (Reagan, Bush 41 and Trump) And once again its three strikes and you are out.
The problem with all that is the middle class pays the price for those President's foolish behavior. And that really says it all.
This commentary written by Joe Lorio
No comments :
Post a Comment