Trump and the American economy are at odds. There are crucial areas that instantly demand Trump’s attention
The budget by Donald Trump has already spurred national debates due to people’s dissatisfaction over steep reductions of various domestic programs, and increased emphasis on the border wall fight. Though it’s a new development amid this chaos, some crucial warning signs are surfacing mainly due to his consistent controversial arguments on immigration, North Korea and the economy.
Though President Trump claims to be presiding over the “greatest economy in the history of this country” he has miserably failed (to date) in keeping his foundational political promise to eliminate the US trade deficit. As per new figures, the gap between imports and exports has grown $100 billion since Trump took office, despite two years of his “America First” tariff policies. To make the matter worse, a poorer than expected monthly jobs report came as a complete surprise to Trump’s best argument of strong economic growth.
Trump’s failure to reach a deal with North Korean leader Kim Jong Un at their second summit in Vietnam last month was a strong blow to the President’s foreign policy venture. The White House has rejected criticism in this regard by arguing that the halt to North Korean nuclear and missile tests has been a major victory.
Economic numbers: A matter of concern
As per the latest report, monthly jobs figures showing only 20,000 new jobs in February, is far below expectations — which came as a jolt. Any single bad jobs report can be an indication of some anomaly or a faltering economy.
Though the economy is largely healthy with low employment rates, any negative sign could spell bad news for a President running for reelection.
Trump and the American Economy
There have been other areas indicating cautionary developments. As per The Atlanta Federal Reserve Board estimate for the first quarter, growth is a mere 0.5%. Annual growth for 2018 fell short of Trump’s 3% target. According to the Bureau of Economic Analysis quarterly growth figures have been on a consistent decline for the last three quarters, possibly exhibiting the fading influence of the GOP tax cuts.
According to the latest reports, the trade deficit is at a 10-year high in 2018, up $69 billion.
The jump came despite a rigorous campaign to revive American manufacturing. This created further pressure on the President to earn victory through other means. One such attempt is trade talks with China that are believed to be in final stages now.
The White House’s own budget estimates look far more promising than independent forecasters. As per the latest reports, Trump is currently reviving his border wall fight and preparing a new budget report that will seek $8.6 billion for the U.S-Mexico barrier while dramatically slashing nondefense spending.
In my view
As a clinical and political psychologist, I truly believe there are numerous political areas that demand an immediate and direct intervention of the President for improvement. The difference between Trump and other Democrats are rising, which is not at all a good indication. He must focus on the US deficit, trade, disunification at home, and foreign policies. It is a highly crucial time in USA politics, and any negative development, prior to the reelection of 2020, can have stinging results.