The economy under President Donald Trump is a disaster for a majority of Americans, and even the top economist at financial services company Moody’s agrees that it’s because Trump’s policies are so bad.
Ever since Trump took office in 2017, he has benefited from the economic recovery achieved under former President Barack Obama, which continued even after Obama left office. But Trump’s economic policies derailed the recovery, especially his massive tax cuts for wealthy individuals and corporations. Just as Republicans have claimed for 40 years now, Trump assured Americans that the economic success of the rich would “trickle-down” to them. But, as usual, little to nothing actually trickled down. Instead, Americans are struggling to get by and it’s only getting worse even as the stock market continues to boom.
During a segment on “All In” With Chris Hayes, a pair of economists discussed the current economic situation, beginning with the fact that wage growth remains stagnant under Trump and has grown less on his watch than it did under Obama.
“That wage growth — median wages in some parts of the country didn’t move at all last year,” former Department of Labor chief economist Betsey Stevenson said before turning to health insurance and childcare.
“The last couple of years, the number of people without insurance has been increasing, childcare costs are rising,” she said. “We see a strong economy where people aren’t having children. It’s very unusual to see the birth rate decline and that’s what we’re seeing.”
That’s because while the economy is strong for the wealthy and corporations, it’s weak for everyone else.
While the number of people without health insurance dropped to all-time lows under Obama because of the Affordable Care Act, Trump and the GOP have sabotaged the law enough in recent years that the number is rising again.
Trump’s trade wars have also negatively impacted manufacturing and farmers as Americans pay the high cost of his tariffs despite him claiming that other countries are the ones actually paying.
That brings us to Moody’s, a firm that has already warned that economic inequality will result in the United States credit rating being downgraded.
Moody’s Analytics Chief Economist Mark Zandi began by talking about the fact that many Americans can’t afford an emergency right now, which is classified as any major unexpected expense over $400. Even buying a car now is “out of reach” for many.
“I think that makes the point very strongly that despite the headline good economic news, it really has not filtered down yet to many, many working-class Americans,” Zandi said.
Both economists agreed that working Americans have lost under Trump’s watch.
“That link that gives workers more bargaining power seems to be broken,” Stevenson said.
“We were nearly there — we just got side-tracked by really bad economic policy,” Zandi replied.
Here’s the video via Daily Motion:
We were nearly there because up to December 2017, Trump had largely not messed with Obama’s economy. Then Republicans jammed their tax law through Congress and Trump signed it. Combined with his assault on healthcare, skyrocketing drug prices, the trade war, and other terrible policy decisions, the economy is not healthy at all and will only get worse the longer he remains in office.
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