The U.S. economy experienced it’s first job losses since former President Obama saved us from recession after taking office in 2008, by initiating economic stimulus. The economy lost 33,000 jobs last month in September, which could certainly be the start of a new “Trump” recession. It’s been two years since Obama championed our successful move out of the 2008 recession, as seen in the clip below. Odds are that you know someone who lost their job during the last recession.
Major hurricanes Harvey, Irma and Maria are being blamed for the job losses, but the jobs numbers are much lower than what economists had predicted. The hurricanes may just be a catalyst to something that was going to happen anyway. House Democratic Leader Nancy Pelosi countered the GOP’s attempt to spin these poor numbers away by blaming them on hurricanes.
“The devastation of the hurricanes has laid bare the corrosive effect of the Republican Congress’ total refusal to act on jobs and wages for working families. Republicans should abandon their job-killing giveaways for the richest and focus on raising wages and creating jobs for hard-working Americans,” Pelosi said, “Instead, the GOP is pushing a budget that would devastate America’s investments in good-paying jobs, growing wages and dignified retirements — all to fast-track deficit-exploding, multi-trillion dollar tax breaks for the wealthiest 1 percent.”
The main issue with the Trump administration that is hurting our economy, is the administration’s lack of stability. The economy grows when businesses expand their operations by investing their money in new equipment, opening new locations, and things of that nature. As the business expands, it requires more workers, which is part of a growing economy.
The reason businesses are doing the opposite however, is the uncertain future that President Trump has created. Trump’s agenda is unclear, so you never know what he is going to do next. His administration keeps losing key officials, and there is even a chance he won’t finish his full term as President, so any policy he enacts that could even benefit business expansion, could be gone in less than a few years.
When an administration is stable, businesses can predict what that administration is going to do, and they can plan ahead for the future. Right now with Trump, businesses are afraid to invest in expansion of their businesses, because they aren’t sure what Trump may do next. He could enact a policy that could cause serious harm to businesses that expand, such as his desire to enact a high tax on imports.
The best plan right now with Trump, is to start downsizing and firing people, which is exactly what the data is showing. The stock market being at record highs is useless to the bulk of small businesses that employ so many Americans. When in doubt, it’s best to play it safe and minimize risk, which means not spending money on expansion, and doing the opposite instead.
Under the Obama administration, we had a clearly stated plan for economic policy, which was stimulus and low interest rates. With Trump, we have no idea what is going to happen, and so we appear poised to enter a new recession.