The economy under Trump is doing about as well as one of his casino’s or Trump University.  In other words, he’s run it into to the ground.  Trump inherited the longest economic boom since Wall Street started tracking these things.  He took credit for the continued uptick in jobs, employment and GDP. He boasted where ever he found an open mike that he alone was responsible for the prosperous economy.  Just when I thought we were just one more good jobs report away from another four years of Trump. the economy started to slide.  It began with the trade wars that hurt American farmers and increased consumer prices for many household goods.    And then along came CoVID . In addition to the unnecessary loss of lives caused by his ineptitude, Trump’s failure to act and downplaying of the virus caused businesses and schools to close and the wheels of American consumerism to grind to a halt.  Businesses closed and workers were fired or laid off in the private sector AND the public secctor.

Fast forward to the 2d QTR 2020 and the economy shrunk by a whopping 33%.  Schools are open but students are not in classrooms.  An estimated 25 million Americans are facing eviction this month many of whom are in essential jobs.  A lot of the higher paid workers are working from home meaning that they are not spending nearly as much as they were on the tangential things associated with going into the office.  Things like public transportation, lunch, an after work drink and personal grooming services.   Uncertain about the future, even the fully employed are spending less and paying off debt.  After all, they could be laid off or fired next as the economy stumbles through the rest of the year.

the stockmarket is not the economy

Many point to the stock market which has reflected a wild, an to some, irrational exhuberance, as evident that the economy is doing fine.  But the stock market is not the economy.  Especially considering many company who’s share prices benefited from the bull market are beefing up their reserves instead of paying out dividends, raising pay or hiring more people.  They may have more money but they aren’t spending it.  The corporate tax cuts which were supposed to work such wonders for the American economy?  Lately it’s starting to look like Social Security and the US Postal Service will be defunded to pay for it.

Meanwhile another 1,234 Americans died today of CoVID.