The U.S. Commerce Department reported that retail sales for June were the same as May even though May's numbers were revised up 0.3% from the first reports. The negative voices predicted June's retail sales would be 0.3% less than May's number and have disregarded that the economy has been holding steady for the past 42 straight months despite inflation.
Since retail sales represents 70% of the economy, job creation at record levels, unemployment rate is at historical low level and reached a record stretch not seen since the 1960's, there has been no justification of recession talk that started two years ago in the second quarter of 2022. The primer that could set off an economic recession are the Feds high interest rates for so long. It is past time to start lowering them and ignore the notion that the way to fight inflation is to weaken the economy, losing jobs, raising the unemployment rate and put people out of work. That is a false economic and monetary policy.
The U.S. economy has come a long way after following the economic and fiscal disaster of the Trump administration. The Biden administration inherited record deficits, record spending, 2.7 million jobs lost, the largest number increase in the national debt of any President's 4 fiscal years $8.2 trillion, the largest single year deficit ever, COVID and the results that followed. The Biden administration also had to cope with Trump's attempt to overturn the 2020 election and the peaceful transfer of power to the new administration.
President Biden was up to the task, turned thing around for the country and its people with plans and policy that worked to address the issues at hand. The results for the past 42 months has been remarkable despite the negative voices of doom and gloom. The greatest threat to the economy between now and the end of Biden's term will fall to what decisions the Feds will make. It should not be taken for granted.
This commentary was written by Joe Lorio
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