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.”

ADVERTISEMENT

“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.”

You can read more here (subscription required).


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

Breaking Banner

Pennsylvania Republican senator arrested and charged with possession of child pornography

Published

on

According to a release from Pennsylvania Attorney General Josh Shapiro, Republican state Sen. Michael Folmer has been arrested and charged with possession of child pornography.

The release said that the investigation began as the result of a CyberTip about Tumblr discovering that a user had uploaded child pornography onto their site. It ultimately led to the home of Folmer in Lebanon, PA. A search warrant yielded images on Folmer's phone.

Continue Reading

Breaking Banner

Netanyahu refuses to concede after he falls short — blames media instead

Published

on

Prime Minister of Israel, Benjamin Netanyahu, refused to concede after being down in the election night polls. Like the last election, Netanyahu is claiming his own personal victory and blaming the media for all of his woes.

Senior Diplomatic correspondent Barak Ravid, at Channel 13 News in Tel-Aviv, was live-tweeting the election results late Tuesday night.

https://twitter.com/barakravid/status/1174116674225758209?s=21

"Netanyahu says Israel needs a Zionist government that is committed for Israel as a Jewish state. No government can be based on support from Arab parties," Ravid said.

Continue Reading
 

Breaking Banner

Mitch McConnell crony running for Kentucky AG is ineligible for office: lawsuit

Published

on

On Tuesday, the Lexington Herald-Leader reported that a new lawsuit seeks to remove Daniel Cameron from the ballot as the Kentucky GOP's nominee for state attorney general.

According to the lawsuit, filed by retired union worker and "concerned citizen" Joseph Leon Jackson Sr. in Jefferson Circuit Court, Cameron does not meet the office requirement of having practiced law for eight years — because although he was admitted by the Kentucky Bar Association in 2011, he spent two of the following years clerking for U.S. District Judge Gregory Van Tatenhove.

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