[ad_1]
Updated April 29, 2020, 8:00 p.m.
In the fall of 2020, Donald Trump wants to be reelected as President of the United States for the first time. In view of the collapse of the economy and the labor market, the head of state has to tremble with many votes.
In the United States, people who don’t have a job quickly are victims of a lack of social security systems. It is not an argument to give the president a voice at that time.
As bad as in the Great Depression almost 100 years ago
In the year of his planned reelection, Donald Trump faces a historic crisis. With the appearance of the corona virus, the US economy. USA It is heading towards a recession, the extent of which may cope with the global economic crisis in the late 1920s. In any case, experts warn against this.
From January to March, U.S. economic output declined 4.8 percent on-year compared to the previous quarter, the Commerce Department said on Wednesday. It was the largest economic dent since the global financial crisis.
The data is the first estimate, so the value could still be corrected in late May or late June. In the fourth quarter of 2019, the U.S. economy grew a solid 2.1 percent.
Since mid-March, many states had begun to impose exit restrictions on the economy. Since then, more than 26 million people have lost their jobs in the United States. Experts believe the unemployment rate should now be around 15 percent.
The government fears a dramatic economic recession in the second quarter, possibly even a contraction of up to 30 percent.
In the United States, quarterly growth figures are always extrapolated to the year. They indicate how the economy would develop if the growth rate continued for a year. This method is not used in Europe, so the figures are not directly comparable.
The individual states of EE. USA They are already beginning to relax the restrictions of the crown. Therefore, Trump expects the economy to recover quickly in the third and fourth quarters.
Trump: “Our economy will be stronger than before and will return very quickly”
Trump promised his compatriots in a speech that the “world’s strongest economy” would be “rebuilt” stronger than before and very quickly “and will return.” Trump published the corresponding excerpt on social networks.
However, most analysts expect a severe recession in 2020, which Trump will likely find extremely inconvenient in the election year. The economy continued to grow until February, with an unemployment rate of 3.5 percent at its lowest level in decades.
Dizzyingly high expenses to save the economy
Congress and the US government. USA They have already launched $ 2.7 trillion stimulus packages to stem the rise in unemployment and the downturn in the economy due to the pandemic.
The United States Federal Reserve (Fed), in turn, has already lowered its key interest rate to near zero and launched multi-trillion dollar emergency programs to stabilize financial markets and the economy.
The central bank has recently multiplied its bond purchases, launched extensive credit programs, and eased requirements for commercial banks.
The Federal Reserve breaks a taboo
For the first time, the Fed is also making loans to states, municipalities and companies, guaranteed by funds from the Ministry of Finance.
According to experts, the Fed’s crisis measures, which have been announced in rapid succession since the end of February, are already broader than those taken after the 2008/09 global financial crisis.
“None of us has the luxury of being able to choose our challenges; fate and history dictate it to us,” said central bank chief Jerome Powell in a speech in early April: “It is our job to pass the exams that are imposed on us. ” (dpa / hau)
In late February, the President of the United States predicted that the number of crown cases would soon be “close to zero.” There are now more than a million identified infections in the country. But Trump exudes optimism and assumes that the peak of the crown crisis has passed.
