Trump and his blows to the American economy!

February 6, 2020 - 18:6

In the 2016 election, Donald Trump could defeat all of his rivals and become the U.S. president. He is the one who has always been criticized and mocked in the world because of his decisions, behavior and policies.

But despite all criticisms and negative views against him, Trump and his aligned media outlets have always tried to portray the greatest achievement of the Trump administration as U.S. economic growth and improving the livelihood of the American people.

But to what extent this claim is true? Has Trump been a successful president economically? Have he and his administration been able to resolve U.S. economic and livelihood problems?

What statistics and economic analysis show us is something contrary to the beliefs formed in public opinion and offer many reasons to reject the belief.

1. The most important reason for Trump's economic successes has always been the decline in the U.S. unemployment rate, which has been unprecedented in the country since 1969. But in spite of all the efforts that Trump and his team are making to declare this rate a success of their administration, this low unemployment rate is not merely their achievement.

Decreasing the U.S. unemployment rate began almost since the beginning of Barack Obama’s presidency, falling from 10% to under 5%. Trump took office in the middle of this downward move and decreased it to under 4%. A simple comparison between first 29 months of the presidencies of Obama and Trump shows that Obama had been able to create one million more jobs than Trump.

There is also a large gap between the unemployment rate announced by the U.S. government and the real unemployment rate. For example, the U.S. has more than 2,300,000 prisoners who are not included in the unemployment rate statistics, while they do not have a job. In this regard, the American journalist Chris Hedges said, “If you look at how they measure unemployment so for instance if you work one hour a week you counted as an employee on the average worker wall mart works 28 hours a week which put them below the poverty line they counted as employee if you have stopped looking for work after four weeks you are magically erased from the unemployment rolls and it does not count large sector of the population, students, retired people who many of them are now riding around in R.V. vans worked doing temp works for Amazon  at Christmas for 12 hours a day and warehouses, prisoners so… it (the unemployment rate) pushing probably 17%”.

2. The Trump administration is now facing a $ 1 trillion deficit, which is very high compared to many previous U.S. governments. Trump is also dealing with a $ 23 trillion debt these days. A figure, which accounts for nearly one-third of the world's total debt, and has become a crisis that the Trump administration has been unable to resolve, worsening over the past few years.

3. U.S. Gross domestic product (GDP) at the end of 2019 was 2.1%. The number is far less than the 4, 5 or 6 percent that Trump had promised, and less than 2.4% average GDP growth in Barack Obama's second term.

The International Monetary Fund (IMF) also has estimated in its new report that U.S. economic growth will fall to 2% in 2020 and 1.7% in 2021, which is a serious alarm for Donald Trump's economic record.

4. Since Trump came to power, 7 million people have been added to the uninsured population in the U.S., and the number of uninsured Americans has raised from 10.9 % to 13.7 % in within three years. This is a problem that cannot be overlooked easily, as based on polls, first concern of many Americans, or more accurately, one of the their main demands, is about cutting health care costs or improving health care in the United States.

However, during his presidency, not only Trump has not taken significant step to resolve this problem, but also escalated the crisis.

5. Since Donald Trump became President, average wage in the U.S. has increased insignificantly. For example, the median household income in the first year of Trump's presidency was $ 62,600. In 2018, the second year of Trump's presidency, this number raised by $500 and reached to $63,100. In the U.S. 78 percent of the population now live paycheck to paycheck, and nearly 43 percent of people are no longer able to afford their basic living expenses such as rent and food. Now in such a country, wages, despite the arguments over Trump's economic successes, have slightly increased. The salary of a full-time worker in the U.S. (proportional to inflation) is still 3% lower than the salary in 40 years ago.

6. The Trump administration's business condition is not very well either. According to statistics, U.S. trade deficit in 2018 was 25% more than when he took office. The issue, coupled with the costs of the U.S. trade war with China and the discontent of American farmers with Trump, has become a serious nightmare for him and his cabinet. The main victims of Trump’s trade war have been American farmers, who were one of largest groups that voted for Trump in 2016 and now are dissatisfied with him and his policies.

The mentioned points were just a few reasons why Trump and his cabinet have failed to resolve U.S. economic problems. These are the most obvious evidence that Trump has created serious crises for the U.S., despite his alleged successes. The crises, along with livelihood and welfare problems of millions of Americans, are going to be the main issues that Trump will face in the November 2020 election. 

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