The recovery has been very strong,” Donald Trump said on Monday. Then the commerce department reported the US economy contracted between April and June at the fastest pace in nearly three-quarters of a century, which is as long as economists have been keeping track. The drop wiped out five years of economic growth.
The comeback “won’t take very long”, he reassured Americans on Thursday. But every indicator shows that after a small uptick in June, the US economy is tanking again. Restaurant reservations are down, traffic at retail stores is dwindling, more small businesses are closing, the small rebound in air travel is reversing.
What’s Trump’s plan to revive the economy? The same one he’s been pushing for months: just “reopen” it.
He wants the public to believe the shutdown orders that began in March caused the economy to tank in the first place, so reversing them will bring the economy back.
Decades ago, one New York City official famously said, "I wouldn't believe a word he says -- even if his tongue were notarized." And, if there is one thing that remains consistent about Trump, it's that you can't believe a word he says. Reich continues:
The sequence of cause-and-effect is clear. The virus has surged most in states that were among the first to reopen, such as Florida, South Carolina, Texas and much of the rest of the sun belt.
Because of this resurgence, many states are pausing plans to reopen and some are reimposing restrictions. But these restrictions are not the reason the economy is slowing. They are the necessary consequence of allowing the pandemic to get out of control.
Even the White House’s own coronavirus taskforce concludes that 21 states have outbreaks serious enough to justify more restrictions.
And things are getting worse. Two days ago, the $600 a week payment to unemployed workers ended:
The White House argues that the extra unemployment payments have discouraged workers from seeking jobs because some are receiving more money in benefits than they would earn by working.
“We don’t want to create disincentives to work,” says Trump adviser Larry Kudlow.
More rubbish. A study by Yale economists finds “no evidence” that people who have lost their jobs are choosing to stay unemployed because of the extra federal aid. In fact, “workers facing larger [unemployment] expansions generally appear to be quicker to return to work than others, not slower.”
People can’t go back to work because there is very little work for them to do. Fourteen million more people are unemployed than there are jobs.
Trump has spent his whole life lying. That will not change.
Image: The New York Times

