Economist Destroys Dem Talking Point, Delivers Good 2020 News For Trump
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Democrats and the mainstream media have been pushing a conspiracy theory lately that a recession is about to hit the United States.
The Left argues that a recession will hit around 2021 and that President Donald Trump must be voted out of office in the upcoming election.
The theory is so bizarre that an economist at the New York Times -- certainly not an outlet friendly to conservatives -- published a report this week noting that the American economic system is far more resilient than the liberals want people to believe.
Neil Irwin, a senior economics correspondent for The Upshot, writes, "In August, consumer sentiment suffered its biggest drop since 2012, and Google searches for the term 'recession' surged to their highest levels in more than a decade."
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Irwin says that while there may be periods of sluggish growth, there are numerous factors indicating that the U.S. economy is still hot and doing exceptionally well for most Americans.
Irwin bases this on the below factors:
1. The sectors affected by trade wars and a diminution of global manufacturing only represent a "relatively small share of the economy."
2. There is little sign of reduced consumer spending, and consumer spending comprises over two-thirds of the American economy; business investment represents 14%;
3. The Federal Reserve has embraced easier money policies since the beginning of 2018, and that kind of shift usually evidences itself in delayed fashion, so it hasn’t been factored in yet;
4. The unemployment rate has stayed at 4% or lower for over a year, which may very well trigger employers to think more long-term and not panic and opt for actions that would inhibit longer-term growth;
5. Despite the fact that business investment seems to be slowing, there are numerous instances in which business investment slowed but consumer spending still grew. Irwin names a few instances, including mid-2015 to mid-2016 and the period after the dot-com crash in 2000 and 2001;
6. The impact of the trade war has most profoundly affected manufacturing and commodity-related industries; Irwin notes, "As of August, only 8.5 percent of American jobs were in manufacturing."
7. The American economy has shifted toward a more service-based economy, leaving it less vulnerable;
8. A Wall Street Journal survey of economists found only roughly one-third think a recession is forthcoming.
Irwin concludes, "There are a lot of risks out there, and it makes sense for C.E.O.s and ordinary consumers to be wary of what the future could hold. But for now, a gloomy economic future remains a far-from-certain possibility."
Irwin's point is pretty simple: there's no recession, the U.S. economy is booming, and the record unemployment proves that there's no recession in sight.
Despite several indicators that the country is doing more than fine, the media has suddenly decided that the sky is falling and the country will be ruined if Trump wins re-election in 2020.
Democrats failed on impeachment, so now they are trying to scare Americans with talk of a recession to defeat Trump in 2020.