The stock market suffered its biggest one-day point drop in history yesterday (though it wasn’t close to its biggest one-day percentage drop, the far more crucial metric) on fears that the coronavirus will cause a global economic slowdown. As the virus spreads, countries like Japan are already closing schools and preparing for major disruptions to daily life. The US stock market was also clearly spooked by Trump’s incoherent press conference and his choice of the unqualified, incompetent VP Mike Pence to shepherd the administration’s pandemic response. Already, a whistle blower has come forward claiming that the federal workers from HHS at military bases in California who interacted with Americans evacuated from coronavirus areas in Asia were not properly protected, trained nor equipped. And the woman in northern California who contracted the virus without having been to Asia nor having been in contact with any known patient (dubbed the “case of unknown origin”) lives near one of these military bases. So it’s likely that the botched handling of the evacuees by the Trump regime has allowed the virus to spread into a community. No wonder the markets are spooked, and no wonder the Trump regime is doing everything it can to spin and distort the inadequacy of its response.
In the months leading up to the coronavirus outbreak, Trump has been lying about the strength of the economy when in fact his first three years in office have produced a weaker economy than the last three years under Obama, based on GDP. But another important metric is worth pointing out. Middle-class income growth is a good measure of the health of labor markets and the broad economy, and here too the Trump years have not been as good as the Obama years. When adjusted for inflation, the first two years of Trump saw average income growth of 2.7% versus an average growth of 5.8% under the last two years of Obama. And of the 10 most closely contested states in the 2016 presidential election, “nine have experienced a drop in the growth of household income,” according to Newsweek. Here is the article, which is worth browsing:
These income growth numbers are strikingly mediocre and a far cry from Trump’s dishonest bragging. And now, in the wake of the coronavirus pandemic, influential Wall Street investment bank Goldman Sachs is forecasting ZERO earnings growth for domestic companies in 2020. If this forecast holds, it’s not an economic disaster. It’s not even technically a recession. But it’s very bad news for the stock market, and it’s a disaster for Trump.
The one thing Trump has consistently touted was his “best ever” economy, and now it’s blowing up in his face. Trump’s irresponsible dismantling of our disease investigators coupled with his elevation of incompetent cronies to oversee our pandemic response will only deepen the negative reaction of the financial community. Our job as activists will be to remind voters that Trump defunded crucial disease-monitoring agencies and then botched the response to the crisis, damaging our already under-performing economy. Much of the 2020 crash belongs to Trump–though of course he will try to blame someone else.
Keep resisting Trump and keep working to “vote his ass out of office.”