Posted:
#276
Trump brags again that US economy has never been better. Actually, past presidents had years of higher economic growth and lower unemployment rates. Even Obama has more quarters of 4% GDP growth and greater jobs creation. Despite Trump's claim, most economists consider extraordinary growth unsustainable in the long run and expect lower growth in the future.
However Trump's economy is unique in things that aren't positive. First, greater income inequality between rich and poor. Secondly, higher federal deficit due to unnecessary tax cuts for the rich. Bad economic management is increasing deficits in a strong economy when competent governments are supposed to do the opposite.
Third, stupid trade war against the world that risk inflation, job losses and next recession. Tariffs offset minor benefits from tax cuts for middle class paying higher prices. According to Goldman sachs, trade war could lower earnings for US S&P500 companies due to lower revenue and higher costs.
Manufacturing jobs have been in long term decline for most advanced countries. Trump is mistaken if he thinks a trade war can reverse that trend. He is forcing US companies to transfer manufacturing to lower wage countries. Americans aren't willing to go from $10 per hour to $10 per day. 80% of 60 economists surveyed by Reuters believe Trump tariffs would harm US economy. None of the economists believe that his tariffs would benefit the US.
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