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
Saturday, May 2, 2020
Will The Business Community Be Up To The Challenge When The Economy Is Open?
That is the question they will have to answer and how they used their time during the lockdown to plan for the opening. Was that time well used for an orderly return for business and did they develop a plan to rehire their workers in a timely matter. We do know many business owners think the economy should be already open. Time will tell if they handle their responsibility as well as the health care people handled their responsibility.
Small business owners will do their part but the large corporations have a history of not taking care of their average worker and look for federal hand outs while their CEO's and executives are still drawing their huge salaries and bonuses. The in-equality in wages tell the story and has been documented many times over. What ever guidelines mandated by the state or federal government should be no handicap for America's business genius to over come. And during this period of idle time the business community has a pretty good idea what the rules and mandates will look like so there are no excuses.
As food for thought, in the past forty years the best economy that takes into consideration job creation, balanced budgets, lower deficit spending, lower unemployment, increase in average wages, stock market gains, lower percentage increase in the national debt and every other thing part of the economy took place on the watch of President Clinton and Obama and both implemented rules and regulations for the environment and other areas of business. And both Presidents inherited a economic recession from the previous administration.
So whatever rules and mandates that come about to open the economy should be no roadblock for business to return. Excuses won't get the job done. The American genius will get it done if egos are set aside.
This commentary written by Joe Lorio
Small business owners will do their part but the large corporations have a history of not taking care of their average worker and look for federal hand outs while their CEO's and executives are still drawing their huge salaries and bonuses. The in-equality in wages tell the story and has been documented many times over. What ever guidelines mandated by the state or federal government should be no handicap for America's business genius to over come. And during this period of idle time the business community has a pretty good idea what the rules and mandates will look like so there are no excuses.
As food for thought, in the past forty years the best economy that takes into consideration job creation, balanced budgets, lower deficit spending, lower unemployment, increase in average wages, stock market gains, lower percentage increase in the national debt and every other thing part of the economy took place on the watch of President Clinton and Obama and both implemented rules and regulations for the environment and other areas of business. And both Presidents inherited a economic recession from the previous administration.
So whatever rules and mandates that come about to open the economy should be no roadblock for business to return. Excuses won't get the job done. The American genius will get it done if egos are set aside.
This commentary written by Joe Lorio
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