Very Stable Genius In Trouble — An Economic Recession Has Begun, New Report Reveals
Two years ago, Donald Trump and Congressional Republicans passed a tax cut that cost the American people $1.9 trillion. It was just another giveaway to Republican donors, wealthy business owners and real estate developers like Donald Trump who game the system at our expense.
Since its passage in December 2017, the cost of the tax cuts has ballooned from $1.5 trillion to $1.9 trillion, emboldening GOP lawmakers to demand even more cuts to Medicare, Medicaid, Social Security, education and more.
Now, with 2020 around the corner, Trump’s tax scam, combined with his trade war with China, is threatening to wreck the economy.
Because of the GOP disastrous Tax bill, the risks of an economic recession are on the rise, but the country’s manufacturing sector is already there.
And for President Trump, who promised to end the “American carnage” of “rusted-out factories scattered like tombstones across the landscape of our nation,” that could be political trouble.
The manufacturing sector shrunk by 1.9 percent in the first quarter of the year, and another 1.2 percent in the second quarter. In July, it is estimated that it contracted 0.4 percent. A recession occurs when an economy contracts in two consecutive quarters.
“It’s pretty clear that in the U.S. the manufacturing sector is contracting right now,” said Chad Moutray, chief economist of the National Association of Manufacturers.
Additionally, Trump’s escalating trade war with China, in particular, is dragging on the industry, according to an analysis from Moody’s Analytics last week.
That could create a vulnerability for Trump, who continued to tout his record on manufacturing this week at a Royal Dutch Shell Plc plant outside Pittsburgh.
“Factory floors across this land are once more crackling with life,” he said. “Our steel mills are fired up and blazing bright. The assembly lines are roaring.”
Of course, he was trying to deflect from the fact that his economic policies are failing.
If people in the industry are feeling pain come November, it could deal a fatal blow to Trump’s reelection bid.
Some of Trump’s potential Democratic opponents in 2020 are sensing an opportunity.
Sen. Elizabeth Warren (D-Mass.) specifically pointed out the slump in manufacturing in a Medium post predicting doom and gloom for the economy.
“For the first time ever, the average hourly wage for manufacturing workers has dropped below the national average,” she wrote of the current manufacturing recession.
“Trump’s trade war with China threatens American manufacturing and has already hurt American companies that investors think of as “industry bellwethers,” while feeding an all-time economic slowdown in China that could have dramatic ripple effects on the American economy,” she added.