During a White House meeting last Thursday with Governor Gregory Abbott of Texas, President Donald Trump told reporters, “the best thing we can do is get our country going.” With 33 million people on unemployment and the evermore growing risk of falling into a recession, I couldn't agree more.
The unlawful regulations set forth by Democrat governors like Andrew Cuomo of New York and Gretchen Whitmer of Michigan have not only induced protests, but an indirect reliance on government support. And although economic relief is being handed to these states by the federal government today, it shakes the vulnerability for the economy of tomorrow.
President Donald Trump told reporters, “the best thing we can do is get our country going.”
The Money That Has Been Spent
What is expected if we keep the United States on lockdown for another few days, few weeks? The numbers that have been projected calculate a worse economic period than our country experienced during The Great Depression. Everything might seem under control as of now, but in all seriousness, it isn’t and here’s why.
In an effort to stimulate something, the POTUS, along with Congress, passed the historic $2 trillion stimulus package in March earlier this year. This would encourage the citizens to either reinvest into the economy, or use the money as a means for covering their personal expenses such as a mortgage, or loans. As of yesterday, $218 billion has already been paid out, but the American people are already asking for more.
When questioned about another wave of stimulus checks because of the pandemic’s further duration, President Trump responded, “something is coming.” Is that a sure answer of another stimulus check on the way, or would it be detrimental to the economy’s recovery to reinvest in such an idea?
What Americans are forgetting is that the government always wins. We may accept these stimulus checks with open arms, however we must not be shocked when the federal government lays a significant tax burden over the next few years. Unless, Donald Trump is re-elected for another term, which could possibly encourage a conservative policy similar to Reagan’s theory: tax less, so people invest more.
The Recent Effect on Jobs
According to NBC News, “The U.S. economy lost an unprecedented 20.5 million jobs in April,” nearing the impact of the Great Depression. These numbers don’t consider the millions of Americans that are self-employed, and work from home on a regular basis. When those statistics are taken into consideration, the jobs lost are at an extreme.
Personal income has decreased by -2.0% in March, which sounds better than it actually is. With less money to spend, there is a smaller amount of money going back into the economy. Contrary to the “trickle-down economics theory,” presented by Ronald Reagan during his presidential term in the 1980s, it prevents business growth, therefore economic growth.
But the news of job loss is not as discerning yet, for many companies are bringing manufacturing back to the United States. “We learned a lot about the economics and making things in our country,” President Donald Trump noted last Thursday when asked about his platform to save the economy.
“We learned a lot about the economics and making things in our country,” President Donald Trump noted last Thursday
Many Japanese plants are in an exodus to the United States, moving factory jobs out of China because of their carelessness and ignorance of dissolving the COVID-19 pandemic. The Chinese, along with the World Health Organization, have undeniably caused this enormous outbreak, and the Chinese economy is punished as an effect.
With the current GDP, the sum of products produced in the economy, at a staggering -4.8%, it will surely turn around as more factories begin to reopen, a light in the tunnel one could say. Elon Musk was criticized by United States assemblywoman Lorena Gonzalez for moving the Tesla production out of California due to illegitimate measures taken by the state.
Tesla was previously the only car manufacturing company still located in California. And in my personal opinion, I doubt the “F*ck Elon Musk” tweet from Mrs. Gonzalez will help with any further negotiations on bringing those jobs back. Grateful states such as Texas and Nebraska have thanked Elon for the opportunity to host his assembly lines.
The Future of the Economy
11 states, including Florida, Arizona, and Arkansas, are set to relax their quarantine restrictions starting today, because of the protests that have been so rampant across the nation. These “rebellious Trump supporters” are not calling for a reason to spread the pandemic, but rather an inclusion of their constitutional rights.
It is understandable that these states are reopening their theaters, hair salons, and public places because of the scarce amount of cases. But, when it comes to New York, New Jersey, and California, what can be done? As the POTUS mentioned in his White House meeting last Thursday, “we must set the fires out one by one.”
Living in quarantine and not leaving our homes only weakens the immune system. Take a look at the Scandinavian countries of Norway, Sweden, and Finland, who have a “free-thinking” idea to not lock the country down completely. With nearly 26,000 cases of COVID-19, proportionally less than the United States, Sweden has been operating efficiently on a “herd-immunity” theory.
And how is their economy doing? Supposedly well, because of the many avid barhoppers, restaurant connoisseurs, and public place enthusiasts as ever before. Because there is no sign of a vaccine anytime soon, the Swedes consider it a threat to shut down their economy.
But why can this not take place in the United States? Because the American people are bred into the belief that the government is considerably right at all costs, and regulations must be followed. If this is hard to believe, consider this: why are national emergencies declared when a few inches of snow falls on the ground? Is it all so dangerous, or do state governments want the additional funding caused by an emergency?
The Solution to the Quarantine
There are two negative outcomes of this disease if the quarantine and lockdown procedures remain the same. As mentioned previously both times, the economy will not recover for nearly a decade, according to The Washington Post. And secondly, the immune systems of every individual will be shaken for an extended period of time, according to Columbia University Medical Center.
What state governments must do is reopen their workforce, and approach this on a case-by-case basis. If an individual feels as if they are unable to go to work based on their fear of contracting the coronavirus, so be it. But we cannot restrict those who are willing to take the precautions of a safer environment.
Mike Huckabee, said that “it’s not like bombs are dropping on top of London.”
In a concluding thought, the former governor of Arkansas, Mike Huckabee, said that “it’s not like bombs are dropping on top of London.” The economy cannot suffer much longer, because the results will result in no economy. And if that time does come, it will be too late for Donald Trump to save us.