Liberals are praying for a recession because many of them feel that is their only hope of defeating Trump in 2020.
While economists and Democrats are raising red flags, the economy continues to prove them wrong. The Washington Examiner reports the U.S. economy grew 2.0% during the second quarter, stunning critics of President Trump’s economic strategy.
Still on Target
Before the start of 2019, President Trump set a target of annual GDP growth of three percent. In the first quarter, we exceeded that mark, with the real GDP increasing by 3.1%.
When the original reports were released for the second quarter, the GDP was announced to have grown 2.1%, but the revised numbers actually have it at 2.0%.
Even with the slight downswing, there is ample reason to believe the economy will continue to boom, contrary to what economists and Democrats are trying to push on Americans.
Economic Growth Barriers
There are two factors right now that could completely swing the economy in either direction.
The first of these is the Federal Reserve. Interest rates increased four times last year, something Trump believes was a major error by the Federal Reserve. He has often stated our rates are far above the norm throughout the world and rather than raising rates, the Fed should be cutting them.
Secondly, there is the ongoing trade war with China. China recently pulled back on its threat to increase tariffs against the United States, but this trade war is far from over.
Trump is applying significant pressure to the Chinese and based on the recent announcement by the Chinese regarding tariffs, it seems to be working.
A 15% tariff is set to hit China on roughly $300 billion in goods this week, with another increase to hit them come Dec. 15.
If Trump is able to get China to the table and end this trade war AND the Fed cuts interest rates, there would be little stopping the economy from improving and possibly hitting Trump’s goal of 3.0% GDP increase.
Until both of these situations are rectified, however, the doomsayers will continue to use fear-mongering to try to pull support from Trump.