Donald Trump is the problem with the economy. He operates on gut-level impulses rather than any sort of long-term or even short-term strategies. Toss into this uncomfortable mix his volatility, lack of economic knowledge, unwillingness to accept guidance, and set-in-concrete solutions. The result is a toxic stew that Trump cannot escape. It looks like this.
Trump’s platform for his 2020 presidential re-election campaign is based upon a strong economy. The trouble is that a recession looms on the horizon. America has had a ten-year healthy economy that began when President Barack Obama’s rescued the country from a deep recession and worse. Recessions are cyclic, and this one is overdue.
White House spokesman Hogan Gidley said Trump was not considering a temporary or permanent tax cut right now, Reuters reported:
‘It’s not being considered at this time but he’s looking at all options out there to try and give people back so much of the hard earned money they’ve made.’
Gidley appeared on Fox’s America’s News HQ and said that the president has been considering tax cuts. Yet, he also tried to quiet people’s fear of a recession:
‘What I can tell you is the same thing [White House economic adviser] Larry Kudlow said and the same thing that the president of the United States has said, that he’s looking at tax cuts again. We think that spurs on this economic expansion.’
Gidley continued by criticizing the media:
‘[The media] wanted so many of these lies about the president to be true…people have more money, they are spending more money, they are saving more money, and they have more jobs.’
The country’s economy has been losing speed, and economists worry that both Britain and Germany are moving closer to a recession.
The president’s people have been toying with the idea of income tax cuts as a way of jump-starting the economy. A 6.2 percent tax pays for Medicare and Social Security. Congress robbed Social Security’s fund years ago, so the country cannot afford to take that money. What will happen if Trump goes this route is that the deficit will rise, and it has already reached the trillion-dollar marker.
The White House’s statement read, according to The Washington Post:
‘As [National Economic Council Director Larry Kudlow] said yesterday, more tax cuts for the American people are certainly on the table, but cutting payroll taxes is not something under consideration at this time.’
Trump has also tried to bully the Federal Reserve Chair Jerome Powell into reducing the interest rate. It has been very low for an extended period of time. While the economy has been churning along well up to this point, that would be a terrible idea. Lowering the interest rate is reserved for those times when the economy is lagging to gin it up.
Representative Bill Pascrell Jr. (D-NJ) said:
‘Their panicking and flailing is palpable and adding more uncertainly to the economy and making a possible Trump recession more likely. They’re flying by the seat of their pants and don’t seem to have any real plan. So let’s see the fine print first.’
There are several solutions. The president could end his ill-considered China tariff deal, which has hit Americans right in their pocketbooks. Consumer spending could move the economy into a healthy place if wages were increased, too.
Trump tweeted calling on the Federal Reserve to drop its interest rates. Although the president has frequently criticized that man he appointed Federal Reserve Chair Jerome Powell, this was his first public direct order:
‘Our Economy is very strong, despite the horrendous lack of vision by Jay Powell and the Fed, but the Democrats are trying to ‘will’ the Economy to be bad for purposes of the 2020 Election. Very Selfish! Our dollar is so strong that it is sadly hurting other parts of the world.[Interest rates] over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well. If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!’
Trump spoke to reporters in Morristown, New Jersey this weekend and said:
‘I don’t see a recession. I mean, the world is in a recession right now — although that’s too big a statement.’
The Mueller Report Adventures: In Bite-Sizes on this Facebook page. These quick, two-minute reads interpret the report in normal English for busy people. Mueller Bite-Sizes uncovers what is essentially a compelling spy mystery. Interestingly enough, Mueller Bite-Sizes can be read in any order.