Quantcast
Connect with us

Trump’s trade war is a disaster — and the numbers prove it: WSJ editorial board

Published

on

On Saturday, the conservative Wall Street Journal editorial board blasted President Donald Trump for kneecapping the U.S. economy with an open-ended, sweeping trade war — and warned that the “trade uncertainty principle” is wiping out the economic gains of the previous few years.

“President Trump tweeted Friday that ‘The Economy is great. The only thing adding to ‘uncertainty’ is the Fake News!’ Sorry, sir. The economy is fair to good, but it’s no longer as great as it was last year, and a major reason is the uncertainty caused by Mr. Trump’s trade policy,” wrote the board.

ADVERTISEMENT

Citing Friday’s lackluster jobs report, the board pointed out that much of the slowing of job creation came from sectors of the economy impacted by the new tariffs.

“Friday’s labor-market report for August shows that job creation in the goods-producing economy has slowed to a trickle,” wrote the board. “Mining and logging lost jobs for the third month in a row while manufacturing produced a mere 3,000, after only 4,000 in July. This reflects declining demand for U.S. goods around the world due to slower growth abroad caused in part by Mr. Trump’s protectionist shock to the global trading system.”

On top of the jobs report, said the board, new Federal Reserve data supports the idea that protectionism is causing major pain.

“The economists did a statistical analysis of newspaper articles and earnings-call transcripts to measure what they call ‘trade policy uncertainty,’ or TPU. They then used that and other data to estimate the impact of TPU on economic growth and industrial production in the U.S. and the world,” wrote the board. “‘We find that the rise in TPU in the first half of 2018 accounts for a decline in the level of global GDP of about 0.8 percent by the first half of 2019,’ the economists write. That damage would be diminishing now if trade tension had abated, the study shows.”

“Mr. Trump and Republicans should be especially worried about the Fed’s estimate that the trade damage will continue through early 2020,” concluded the board. “He may not want to believe anything from the Fed. Then again, we predicted this result two years ago. Bad policies have negative consequences, whether they come from the right or left.”

ADVERTISEMENT

You can read more here (subscription required).


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

Republican Kevin McCarthy gets taken down by former top GOP colleague

Published

on

Rep. Kevin McCarthy (R-CA) was attacked by a former Republican colleague who alleged McCarthy and his fellow members of Congress have allowed the House GOP to become the official shill for the White House.

In a profile for the New York Times, former Oversight Committee Chairman Tom Davis (R-VA) shamed the GOP House for the way that a once-respectable institution has fallen.

“Congress no longer operates as an independent branch of government, but as an appendage of the executive branch,” said Davis. “He is made for that role.”

Continue Reading

Breaking Banner

Former senator reveals to Maddow how one brave Democrat can reveal key document in impeachment trial

Published

on

Near the end of Wednesday's impeachment trial, Chief Justice John Roberts announced that an agreement had been made to allow senators to read supplemental testimony from Vice President Mike Pence aide Jennifer Williams.

The document will remain classified, despite claims that there is no classified material in the document, only evidence that is damning to the president.

"In terms of this document potentially being improperly classified, which is something that has been raised in writing by Rep. Adam Schiff (D-CA) and raised on the floor of the Senate tonight by Rep. Zoe Lofgren (D-CA)," MSNBC anchor Rachel Maddow noted. "Obviously, it was the vice president's office that said it was classified, they are getting publicly criticized for that. If it has been improperly classified and it should be something that the public can see, who adjudicates that?"

Continue Reading
 

Breaking Banner

Florida Republican Matt Gaetz admits Trump’s legal defense was ‘like an 8th grade book report’ — only worse

Published

on

Rep. Matt Gaetz (R-FL) admitted that President Donald Trump's team of lawyers weren't quite the legal eagles that he thinks they might be, said Politico reporter Andrew Desiderio.

Questioned about his take on the way the case is unfolding in the Senate, Gaetz said that the House presented it like it was going to be on "cable news." For many that may be an insult, but it appears to Gaetz that was a compliment.

Desiderio said that Gaetz then lamented that the White House presented their case more like “an 8th-grade book report.”

Continue Reading
 
 
Help Raw Story Uncover Injustice. Join Raw Story Investigates for $1 and go ad-free.
close-image