Posted by Patrick L. on August 4th, 2016
With last weeks GDP report and Trump announcing a giant stimulus my position on the future is only more justified.
You can see my take on the future of the US economy here:
Last week the GDP growth report for Q2 2016 showed 1.2%. Although this is an increase from Q1’s report of .8%, it is still awful. Economists expected double of the actual growth. This, the September panic of last year, and the terrible start to the year show a failing economy that will soon collapse. Not to mention the record low interest rates that are propping up the economy. The Obama administration is admitting we have a weak economy by not continuously raising rates every quarter. At the end of 2015 they raised rates half a percent and the economy failed for nearly two months. We are just buying time right now. President Obama and the Fed Board are buying time for the presidential election. They will not raise rates until after the election, if they raise them at all. At nearly every speech by Obama or Clinton you can always hear them tout the unemployment rate is at 4.9%. They claim their policies have brought America from the dead. But their policies had nothing to do with it. It was Quantitative Easing, or QE, that has driven unemployment down. Though in return this has created a very weak economy masqueraded by fake growth. Some monetarists and Keynesians will argue that keeping low interest rates in times of recession will help unemployment and kick start the economy (alongside stimulus). This is way off. Even Milton Friedman, a monetarist, argued that messing with inflation will only lower unemployment for a short period of time before returning to its “natural rate”. With the the awful economy we have today that natural rate will be higher than the 2008 recession and any recession within the last 50 years.
The other day Trump announced he would dump 500 billion on infrastructure. Now the Trumpkins will probably think this is a good idea just because Trump said it is, but let me lay out the implications. Not only is this twice the size of Clinton’s plan, it is nearly the size of the New Deal cost. With Trumps low taxes and his new stimulus-like-package he will be very easily on the edge of Keynesian-like deficit running. This is still nearly 100 days to election too. Who knows what other programs he will unveil. I myself can’t wait to hear his plan for the Fed. This is just another parallel between Trump and Hoover. Massive public works programs. Republicans you have nominated the worst candidate in perhaps the last 100 years. He can’t stay on target. He attacks people who should not be attacked. He flip flops on issues daily. He can’t seem to use complete sentences without a teleprompter. He is willing to fund PACs against Ted Cruz in his upcoming senate run. He has parallels to the worst Republican president of the 20th century. And in the meantime he is destroying the conservative brand. Good job Republicans, I hope you’re satisfied.
This was written by P.L. who can also be found @_Southern_Conservative_ on Instagram. His opinions are his own and do not necessarily represent the rest of the writers or the blog as a whole.