Undoing everything former President Barack Obama did and taking credit for the robust economy Obama left behind are two of President Donald Trump’s favorite things. Well, that and tweeting like a toddler who has just accidentally broken into their parents’ iPhone. But economists are forecasting a recession just in time for Trump’s reelection in 2020, assuming he makes it that far.
From major retail closures to jittery wall street investors fearful of President Trump’s trade wars, the current economic climate has all the ingredients for a major recession shortly. Sure, increased government spending and robust global growth should protect the economy from a downturn over the next two years.
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However, economists don’t want us to get complacent.
Bloomberg reports that:
“Fading fiscal stimulus, higher and rising interest rates, and cresting world demand could leave the economy vulnerable to a contraction — just in time for the presidential campaign.”
Mark Zandi, chief economist at Moody’s Analytics Inc., in West Chester, Pennsylvania, said:
“2020 is a real inflection point.”
All the short-term economic gains are paving the way for major losses down the line later, particularly if stocks get out of hand.
Allen Sinai, president of Decision Economics Inc. in New York, said:
“You can be a totally healthy person and a block falls off a building and kills you.”
What’s most worrisome is the effects of the tax scam Republicans hastily put together on the fly and shoved down America’s collective throat. Proving that it was nothing but a massive handout to the super-rich on the backs of the poor and middle-class, 42 top economists say that the tax cuts will not affect the economy. A sampling of what some of them said, per Vox, include:
MIT’s David Autor, an eminent trade economist:
Tax policy appears to have little effect at the margin on GDP growth in OECD countries.
Anil Kashyap, from the University of Chicago, wrote:
Doubt it will substantially change things either way.”
Recent winner of the Nobel Price in Economics, Richard Thaler, wrote:
“Aside from the redistribution of wealth, hard to see this changing much.”
Let’s make sure that Dmoeartys take back the house in 2018 and can prevent some of these disastrous Trump policies from causing another recession.
Featured image Sunlight Foundation.