Recession Talk Is A Democratic Chess Move
Trump says that there’s no impending recession. Economic advisors say that there’s no impending recession. Why is that all that the Democrats can talk about now? It’s a simple answer and one that should surprise no one.
The Democrats are getting desperate. They need to convince voters that any of the 2020 presidential candidates from the DNC are going to be a better choice than Trump. With the economy in a better place than it has been in years, however, it’s hard to convince people of that.
The easiest thing for the Dems to do is lie. Since the Mueller report couldn’t lead to impeachment, lying about a recession is the latest move in their game of chess. After all, people are concerned about the economy because it controls their money. If the economy slips, it’s something that will tarnish Trump’s name – and it’s what can lead to the Dems getting the victory in 2020. Something pretty drastic would have to happen for that to happen, however.
The problem with talking about a recession is that it can actually cause a recession. People get nervous and stop making investments. They lay people off because they don’t want to get into a financial crisis. All of these moves made in anticipation of a recession that never comes is enough to cause one – and that’s what the Dems are hoping for.
Luckily, there are economic advisers in the White House that are taking the necessary precautions. They’re making sure that the United States people are aware of the facts as a way to calm nerves and make a defensive move in the game.
Larry Kudlow, the chief economic adviser, and Peter Navarro, the White House trade adviser, has spent some time on the news shows circuit in order to make a few appearances. They took the time to list the positive statistics that are taking place under Trump. By doing so, the idea is to calm the fears that some people have, all put into their heads by Dems trying to make a calculated move.
Navarro explained on ABC that, prior to his role in the White House, he spent 20 years forecasting stock market trends and forecasting the business cycle. He has said “with certainty” that the US is going to have a strong economy through 2020 and beyond. That should make it easier for everyone to take a deep breath and relax.
Part of the concern comes from the inversion of the Treasury’s yield curve. Some independent economists have pointed out that this pattern occurs before every recession that has happened since the 1950s.
Not to fear, Navarro has an explanation for that, too. The curve may be flat, but it’s for good reasons, not bad ones.
Kudlow adds to the explanations. With the unemployment rate so low, people are working. Many people are working at higher wages than they have in the past, which means that they’re not only spending but they’re also saving. This is a great way for the country to be – and it’s expected that it’s going to continue in this fashion.
The unemployment rate has been sitting at around 3.7 percent, which is lower than it has been in years. The average hourly wages are up by about 3.2 percent over the prior year, which is also a strong position to be in.
Senator Kirsten Gillibrand (D-NY) is one of the presidential candidates who would rather try to increase her position in the polls by scaring people away from Trump. She is concerned about a recession because of the North American Free Trade Agreement as well as the Chinese tariffs. As Trump has explained, there are no bad deals. Further, if the tariffs hurt anyone, they hurt China, not the United States. If Gillibrand is so concerned about a recession, maybe she should focus on it as opposed to a global warming plan that would end up costing over $10 trillion if she were elected president.
Trump has reinforced the fact that there’s no chance that the United States will slip into any kind of recession. The economy is doing well, taxpayers experienced a significant tax cut, and people are buying. Trump joked about seeing Walmart numbers and how they’re through the roof, saying that’s “better than any poll.”
If people look at the actual facts, there’s no recession lining up. The only ones who are concerned are the Dems and that’s because the polls aren’t turning in their favor, not because they’re actually concerned about the state of the economy.