Coronavirus economics expose Trump
The stockmarket crash associated with the coronavirus highlights yet another of Trump’s follies, that being his much-celebrated tax cuts.
Donald Trump inherited a healthy economy, recovered from the 2008 recession and growing in all sectors.
Obama’s American Recovery and Investment Act of 2009 started the longest period of economic growth in the history of the United States, with GDP growth ranging from 1.6% to 2.9% a year while Obama was in office.
Trump, wanting to one up Obama, decided that such healthy and sustainable growth was just not enough and in a rehash of trickle-down economics gave short-term tax cuts to the middle-class equivalent to a big screen TV for each family and tax cuts to corporations and wealthy individuals of about two trillion dollars. Corporations spent their savings buying back company stock and wealthy individuals invested in the stockmarket. None of this increased the GDP past 2.9%, which hit the same peak in the Obama administration; 8.1 million jobs were created in the last three years of the Obama administration versus 6.5 million jobs in the first three years of the Trump administration. All of Obamas last three years of job growth beat Trump’s best year of job growth.
Fast-forward to today: the coronavirus caused a 20% market crash as did the financial and real estate bust of 2008 the 9/11 market crisis of 2001 and Black Monday of 1987 before that. While nobody can predict such market fluctuations, such drops are inevitable.
The two trillion dollars American taxpayers gave to wealthy investors is gone up in smoke, the wealthy are still wealthy, and future generations of the middle-class are left to deal with additional trillions in debt.
The world’s greatest con artist is up for re-election.