When It Comes To The U.S. Economy, Everyone Wants To Pin The Credit Or The Blame On Donald Trump
When It Comes To The U.S. Economy, Everyone Wants To Pin The Credit Or The Blame On Donald Trump by Michael Snyder for The Economic Collapse Blog
No matter what happens with the U.S. economy, most of the credit or the blame is going to go to President Trump. And now that the U.S. economy appears to be headed for big trouble, the mainstream media is salivating over what this could mean for Trump’s chances of winning in 2020. Within the past few days, the New York Times, the Washington Post, CNN, MSNBC and Fox News have all run stories about Trump and the economy, and they are all perpetuating the false premise that presidents should be held accountable for how the economy performs. As I have repeatedly reminded my readers, the truth is that U.S. presidents generally have relatively little control over the direction of the economy. In our system, it is the central planners at the Federal Reserve that primarily direct our economy, and so most of the credit or the blame for our economic performance should go to them. And the truth is that even President Trump realizes this. He understands that the Federal Reserve has control over key economic tools that he does not, and that is one of the reasons why he is so frustrated right now. The Fed is not running things the way that he would run them, and he realizes that this could severely hurt his chances of winning the next election.
During his first term, President Trump has not actually been able to do much to alter the overall trajectory of the economy. Some pundits point to the tax cuts that he was able to pass, and certainly reducing corporate tax rates helped things a little bit in the short-term, but the overall impact of the tax bill was relatively negligible. Ultimately, the moves that the Federal Reserve has been making have been far more important, and at this point Trump seems to be convinced that Fed Chair Jerome Powell and others are intentionally trying to undermine him…
He has insisted that his own handpicked Federal Reserve chair, Jerome H. Powell, is intentionally acting against him. He has said other countries, including allies, are working to hurt American economic interests. And he has accused the news media of trying to create a recession.
“The Fake News Media is doing everything they can to crash the economy because they think that will be bad for me and my re-election,” Mr. Trump tweeted last week. “The problem they have is that the economy is way too strong and we will soon be winning big on Trade, and everyone knows that, including China!”
Trade policy is one area where presidents do have more power than anyone else, and this is definitely where President Trump has had the biggest impact on the economy. After claiming for months that a trade war would be “easy” to win, President Trump is now acknowledging that our trade war with China could potentially result in a recession…
“I am doing this whether it’s good or bad for your statement about, ‘Oh, will we fall into a recession for two months?’ The fact is, somebody had to take China on,” Trump said.
“Whether it’s good for our country or bad for our country, short term, it had to be done,” he said, repeating that “whether it’s good or bad, short term, is irrelevant.”
And to be honest, this is the argument that Trump should have been making all along. A trade conflict with China is most definitely going to be very painful, but it is also very true that something had to be done about China. They have been taking advantage of us and ripping us off for years, and when previous administrations decided to do nothing about China they were being exceedingly negligent.