Why does Trump lie that the economy is doing well or that we have a V shaped recovery?
Trump shows off about the economy but we have a 10.2% unemployment rate. The highest since the great depression. Almost double the unemployment rate of the E.U and Australia(both around7%) and 3X South Korea and Japan(around 4% each)
There is no "V" shaped recovery. Unemployment has been the highest since the great depression and unemployment benefits has been the highest for all time for 5 months now.
I live in Texas and we still see cars lining up for hours in food lines. Luckily, my husband and I have stable jobs.
Obama left the unemployment at 4.7%. Trump took it up to 10.2%.
- Anonymous1 month agoFavourite answer
The economic downturn and related employment loss is due more to the Corona Virus than any action of Trump's however this only applies to this year. Although the GDP has been rising there were several signs that the economic recovery was not as solid as Trump would like people to believe such as:
Employment Growth - While the unemployment rate was quite low job creation had fallen by over 19% prior to the effects of the virus. To sectors, retail and mining, have negative job growth meaning that more jobs are being lost than created. Although manufacturing was increasing this was offset by job losses in mining and related industries resulting in a relatively flat job growth curve.
Wages - Although wages have increased at a rate slightly higher than under the previous administration so have costs. Since Trump was elected, and including the effects of any tax cuts, the purchasing power of the average worker has fallen for the past two consecutive years. Prior to the virus the US Government was in negotiations with it's employees for a wage increase. The request was for a 1.5% wage increase, below the average increase in cost of goods, the government countered with 1% stating that the additional .5% would crash the economy. Not a sign of a healthy economy.
Tariffs - The purpose, supposedly, behind tariffs was to make US made goods more competitive and more viable financially. However studies have shown that instead of making US goods more competitive with foreign goods, many US companies merely raised their prices to match the increase in foreign goods. Since the consumer is the one who pays for any tariffs this has cost the American Consumer an estimated $25 billion per year in extra costs when compared to pricing before the tariffs took effect.
GDP - An important measure of the economy it is, however, affected by external actions. For example the GDP rose sharply prior to the tariffs as companies boosted production trying to fill contracts before the tariffs took effect. The highest increase in GDP took place during 2015 but otherwise it has been rather steady as the world recovered from the last recession. Despite claims by the Trump administration, he has not set records for GDP increases.
Stock Market - The stock market is often used as an economic indicator but, in reality, it is not the best measurement due to several factors which influence stock prices but do not benefit the economy.
Deficit - Despite constant references to the deficit under Obama when he was elected people fail to mention that he inherited a declining economy that was shedding jobs at a record rate. Once the economy started to grow again the annual deficit began to fall. When Trump was elected he inherited a growing economy and falling unemployment rate however instead of continuing the drop in the annual deficit he instead increased it by approximately $300 billion the first year and has continued this increase for the past 3 years for a total extra increase of $1 trillion. Much of this was due to the tax cuts given large corporations which would supposedly create new jobs but, in reality, did not and this was according to the companies themselves.
- yLv 71 month ago
True, many millions have to line up in those lines for help, many millions suddenly had their lives turned upside down. The cause however, is a freaking pandemic. Bash Trump all you want, still doesn't make it right. There is nothing else he could have done to limit the economic damage and spread of the virus. Sorry, but that China ban saved millions, the fed recommendations are still in place, the task force was in place prior to the end of Jan. The talking heads can scream and yell all they want, but besides taking more control, there s nothing more the feds can do.
- 1 month ago
I hope you realize that with the exception of the E.U. the USA has a population 62% higher then all the countries you mentioned combined. I didn't know that viruses picked political sides.
- Alvin ColmesLv 71 month ago
LOL @ your inability to understand that when some governors have their state shut down the president can't really be blamed for the unemployment caused by it. LOL
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- Anonymous1 month ago
Trump lies about his performance because the only thing he cares about is his public image, and because his supporters never fact check anything he says.
- ahandle101Lv 71 month ago
Look, we all know the lines at Mickey D's are long. They aren't allowing dine-in, so everybody's at the drive-thru. As an "essential" worker, according to Governor Whitmer, I wish I was unemployed. All that free time, and I would have been making extra bank these past 3 months.
- Riot KingLv 61 month ago
Democrats saw it happening. That's why they shut their states economy back down.
- Ryde,0nLv 71 month ago
10.2% unemployment was 0bama's average under normal conditions .
- Anonymous1 month ago
Can you say pan-dem-ic?
I know you can...Source(s): Context
- AnnLv 61 month ago
Where's the lie? Last week, a million jobs were created. Once we get these liberal Democrat mayors/governors to open up again, the economy is bouncing back to greatness unlike what liberal Democrat economists are telling us: "It will take years to recover." It ISN'T taking years to recover and that upsets all liberal Democrats because it's helping Trump get re-elected.