BARACK OBAMA'S ECONOMIC ADVISER SAYS DONALD TRUMP IS WORLD'S 'NUMBER ONE RISK FACTOR' TO ECONOMY
The economic adviser for former presidents Bill Clinton and Barack Obama described President Donald Trump on Wednesday as the "number one risk factor" for the economy and said that if Trump "simply did nothing, the entire US and global economy would be in stronger shape than it is now."
Speaking with MSNBC's Lawrence O'Donnell on Wednesday after U.S. stock markets suffered their worst day of the year, with the Dow Jones industrial average falling 800 points, or three percent, Gene Sperling offered searing testimony of how Trump has handled the economy.
"I think what we're seeing Lawrence, is that our biggest fear with President Trump isn't just economic nationalism, it is economic narcissism," said Sperling, the director of the National Economic Council for Obama and Clinton. "It is this kind of drunk driving type of economic management. Now, when you drive drunk, you don't always get into an accident, but you dramatically increase the chances of something very bad happening. Donald Trump inherited, like he inherited wealth from his dad, he inherited an economy that was solid, that was improving."
When Obama left office, the economy was performing well. In the last 19 months of Obama's term, the economy added 3.9 million jobs. In the first 19 months of Trump's term, the economy added 3.6 million jobs. Trump has regularly touted his handling of the economy, often pointing to unemployment which is near a 50-year low level, at 3.7 percent.
The global economy, however, now appears poised for an economic downturn. Analysts are pointing to Trump's trade policies, while he's blaming the Federal Reserve.
The president's attempt to restructure global trade relations, particularly focusing on the U.S.-China trade dynamic has infused the global economy with uncertainty. With the U.S. 10-year to 2-year bond yields inverting on Wednesday, global growth slowing and five of the world's largesteconomies veering toward recession, experts are offering dire warnings about a possible economic downturn.
"What we've also seen is this reckless type of management on the trade side," Sperling said. "This is something where there could have been a smart way to do it. I agree we should be tougher on China. I agree we should take some short-term hits. But this kind of reckless back and forth has now been such an assault to not just the US economy but the global economy that now the number one single risk factor in economics in the world is Donald Trump personally. That's why I say economic narcissism."
No comments:
Post a Comment