Tag: U.S. economy

Shutdown’s Economic Damage Starts to Pile Up, Threatening an End to Growth

Federal workers, contractors and supporters demanding the reopening of the government last week. The White House estimated on Tuesday that the shutdown was causing twice as much economic damage as previously projected.CreditCreditLeigh Vogel for The New York Times

WASHINGTON — The partial government shutdown is inflicting far greater damage on the United States economy than previously estimated, the White House acknowledged on Tuesday, as President Trump’s economists doubled projections of how much economic growth is being lost each week the standoff with Democrats continues.

The revised estimates from the Council of Economic Advisers show that the shutdown, now in its fourth week, is beginning to have real economic consequences. The analysis, and other projections from outside the White House, suggests that the shutdown has already weighed significantly on growth and could ultimately push the United States economy into a contraction.

While Vice President Mike Pence previously played down the shutdown’s effects amid a “roaring” economy, White House officials are now cautioning Mr. Trump about the toll it could take on a sustained economic expansion. Mr. Trump, who has hitched his political success to the economy, also faces other economic headwinds, including slowing global growth, a trade war with China and the waning effects of a $1.5 trillion tax cut.

View the complete January 15 article by Jim Tankersley on The New York Times website here.

Dow sweeps downward again, with no sign of Santa rally

Three major indices slid more than two percent Dec.17 on concerns about slowing economic growth ahead of anticipated Federal Reserve rate hike this week. (Reuters)

U.S. stock markets again swept downward on Monday as criticism about the Federal Reserve’s pace of interest rate increases has kicked up a fresh round of year-end volatility.

The Dow Jones industrial average closed down 507 points, or 2.1 percent, at 23,592, extending a slide after a 496-point loss on Friday. The blue-chip barometer is notching its worst month in more than three years.

The Standard & Poor’s 500-stock index and the tech-laden Nasdaq composite also dropped 2.1 and 2.3 percent, respectively.

VIew the complete December 17 article by Thomas Heath on The Washington Post website here.

Slowing economy looms as 2020 challenge for GOP

There are growing signs that the economy will slow substantially over the next two years, posing a significant problem for President Trump and Republicans who highlighted economic growth heading into the 2018 midterm elections.

Goldman Sachs on Monday issued a report projecting gross domestic product (GDP) growth will slow to 1.8 percent and 1.6 percent in the third and fourth quarters of 2019, respectively, sooner than anticipated and creating a major headwind for GOP candidates the following year.

The bank’s chief economist, Jan Hatzius, wrote in a note to clients that “tighter financial conditions and a fading fiscal stimulus” from the 2017 tax reform and spending packages will be “key drivers of the deceleration.”

View the complete November 20 article by Alexander Bolton on The Hill  website here.

Why It’s NOT the Economy, Stupid

With growth up, unemployment down, voters are focusing on other issues

ANALYSIS — Last week, the National Republican Congressional Committee released a web video entitled “Better Off Now.” According to NRCC communications director Matt Gorman, who was quoted in the accompanying press release, “November comes down to one question: Are Americans better off now than they were two years ago?” That might be what Republicans want, but it is not likely to be voters’ sole motivation as they cast their ballots.

According to Gorman, voters will “keep Republicans in the majority.” The economy certainly is good, and there is no reason to believe that will change before November.

Unemployment is down. Economic growth and consumer confidence are up. Even wages are starting to show some gains. But if the economy and the public’s satisfaction with it automatically translated into strong presidential approval numbers and gains for the president’s party, Donald Trump’s job approval would be well over 50 percent and House Republicans would be poised to gain seats.

View the complete Septenber 18 article by Stuart Rothenberg on the Roll Call website here.

REAL STORIES: Americans Struggling With Rising Costs

Americans everywhere are struggling with rising costs and are failing to see their paychecks increase. But instead of reigning in drug costs or ending their health care sabotage that has led to skyrocketing premiums, Republicans want to push another round of tax cuts.

It’s clear Republicans aren’t focused on what matters to Americans. Here are real stories of Americans who continue to struggle with access to care and rising drug prices:

“Does that mean that I don’t get the privilege to live? Does it mean that I don’t get the privilege to work and contribute to our society? Because without access to health care I can’t do those things.” – Texas resident with a pre-existing condition

Continue reading “REAL STORIES: Americans Struggling With Rising Costs”

Ten years later: Wounds run deep from 2008 crash

The following article by Sylvan Lane was posted on the Hill website September 1, 2018:

Ten years have passed since the depths of the 2008 financial crisis and the U.S. has emerged as a more prosperous but less equal nation.

The bankruptcy of Lehman Brothers and government takeover of Fannie Mae and Freddie Mac in September 2008 set off a series of collapses that froze the global financial system and triggered a massive recession.

Millions of Americans would lose their homes to foreclosure and their jobs to the contracting economy. The devastation helped fuel the election of former President Obama, who enacted sweeping new rules for banks and a massive stimulus package over the opposition of Republicans.

View the complete article here.

The Reality of 3 Percent Growth

The following article by Andrew Soergel was posted on the U.S. News and World Report website August 31, 2018:

The economy was strong through the first half of 2018, but few analysts see the good times continuing.

Credit: Drew Angerer, Getty Images

PRESIDENT DONALD TRUMP rode into the White House on the backs of what many experts considered to be fairly lofty economic promises – chief among them the claim that he’d be able to jump-start a slow but steady economic recovery into a full-fledged boom.

While the president has at times speculated that he’ll be able to get the U.S. into a groove that will see annual economic growth as high as 6 percent, for the most part he has set a much lower target of 3 percent.

And in his second year in office, it’s looking like U.S. GDP is going to get awfully close to that benchmark.

View the complete article here.

Despite strong economy, many Americans struggling to get by

The following article by Sarah Skidmore Sell was posted on the Associated Press website August 29, 2018:

Despite a strong economy, about 40 percent of American families struggled to meet at least one of their basic needs last year, including paying for food, health care, housing or utilities.

That’s according to an Urban Institute survey of nearly 7,600 adults that found that the difficulties were most prevalent among adults with lower incomes or health issues. But it also revealed that people from all walks of life were running into similar hardships.

The findings issued Tuesday by the nonprofit research organization highlight the financial strains experienced by many Americans in an otherwise strong economy.

View the complete article here.

Dems flip economy script on GOP amid stagnant wages

The following article by Niv Elis was posted on the Hill website August 9, 2018:

Credit: iStock

Democrats are flipping the script on Republicans, blaming the Trump administration’s policies for lackluster wage growth as they seek to blunt any political benefits from the growing economy for the GOP.

It’s a significant change from just two years ago, when Democrats broadly hoped that falling unemployment numbers would help Hillary Clinton keep the White House in Democratic hands.

At the time, Donald Trump and Republicans used stagnant wages to bolster their argument that growth under President Obama was sluggish and that the GOP should be put back in the White House.

View the complete article here.

Real Wages Continue To Fall Under Trump

Workers are not benefiting from the Trump economy. While Trump continues to lie about wage growth, new data from his own Labor Department shows that real wages have actually decreased over the past year as costs of living – including rents and gas prices – rise.

Wall Street Journal: U.S. Consumer Prices Rose 0.2% in July

By Josh Mitchell and Sarah Chaney

Inflation picked up modestly in July, eating up Americans’ wage gains.

The consumer-price index—a broad measure of Americans’ living expenses, from groceries to dental care—rose 0.2% from a month earlier, the Labor Department said Friday. Excluding food and energy components, so-called core prices rose 0.2% as well.

The increases fell in line with economists’ expectations. Continue reading “Real Wages Continue To Fall Under Trump”