Gary Cohn, President Trump’s former chief economic advisor, told CNBC on Thursday that the president’s trade war with China was killing the United States’ service economy.
Cohn noted that 80% of the United States’ GDP and job creation is in that service economy.
“When you’re a service economy, the way to stimulate your economy, the way to grow your economy is to allow consumers to buy goods as cheaply as they possibly can, and use the rest of their money to buy services or if they’re lucky enough to save,” he said. “Anything that raises the price of a good doesn’t make sense for our economy. Even if they’re paying it to the government as a tariff, it’s just another tax.”
Cohn dismissed Trump’s focus on manufacturing, saying that jobseekers were actively seeking service positions.
“If we look at the last JOLT (Job Openings and Labor Turnover) data that we always talk about, the big increase is we saw more need for workers in business services,” he said. “We saw more voluntarily leavers from the manufacturing industry, because as the job market tightens, people will voluntarily leave the manufacturing industry and go into the service industry.”
Watch the video below.
GOP leaders in open warfare with Trump’s White House as another government shutdown looms
According to a report in the Washington Post, GOP leaders are at an impasse with the White House on future budget concerns as President Donald Trump's chief of staff -- which is leading to fears of another government shutdown.
The report states, "GOP leaders have spent months cajoling President Trump in favor of a bipartisan budget deal that would fund the government and raise the limit on federal borrowing this fall, but their efforts have yet to produce a deal."
Trump Twitter-snarls at ‘Impeachment Day’ protesters as the product of ‘Radical Left Democrats’
President Donald Trump lashed out at Impeachment Day protesters on Twitter on Sunday morning, downplaying their efforts after seeing a report on Fox News.
Taking to Twitter the president wrote, "Yesterday was the Radical Left Democrats big Impeachment day. They worked so hard to make it something really big and special but had one problem - almost nobody showed up. “The Media admits low turnout for anti-Trump rallies ...saying enough. Democrat voters want to hear the politicians talking about issues. This is a huge distraction and will only help Donald Trump get elected. 'Greatest President since Ronald Reagan' said a counter-protester. LehighValleyLive."
Trump’s first term: hits and misses
"Promises made, promises kept," goes one of President Donald Trump's main 2020 reelection slogans. Is that true?
Here are some of the key policy hits and misses -- comparing his accomplishments to his promises -- from a tumultuous first term.
- HITS -
The economy will be Trump's major selling point.
GDP grew 3.1 percent in the first quarter of 2019 and the last recession was a decade ago. Unemployment is at a 50-year low of 3.6 percent.
Trump's frequent claim that the economy is probably "the best" in US history is an exaggeration, though.
Economists see growing dangers, including exploding government debt and growing backlash from Trump's aggressive trade policies, especially with China.