This article discusses President Trump's recent comments about a potential recession in the U. S. and examines the blame game surrounding economic downturns.
1. President Trump's Comments: Trump did not rule out the possibility of a recession this year, following an announcement from the Atlanta Fed predicting a nearly three percent decline in GDP for the first quarter.
2. Political Reactions: The potential recession spurred concern among Trump's political opponents and the media, leading to fears of a “Trumpcession. ”
3. Lack of a Coherent Economic Philosophy: The political establishment lacks a consistent economic explanation for events like recessions and inflation. Various political narratives often shift to suit their agendas during economic downturns.
4. Historical Blame: Previous recessions have been blamed on specific actions or failures by politicians, from Hoover’s budget balancing during the Great Depression to inadequate regulations before the 2008 crisis, and insufficient government action during COVID-19.
5. Real Cause of Recessions: The narrative fails to address that broad economic downturns are often due to artificial credit expansion rather than specific political actions. Central banks, particularly the Federal Reserve, are noted as key players in producing these economic cycles through excessive credit growth.
6. Potential Outcomes: As a new recession is anticipated, the article argues that the establishment will likely assign blame on selective political figures rather than recognize the deeper systemic issues in credit expansion.
The article urges readers not to fall for partisan narratives that simplify the complex nature of economic downturns, emphasizing that the real causes stem from systemic financial practices rather than individual politicians' actions.
https://mises.org/mises-wire/who-gets-blame-upcoming-recession
No comments:
Post a Comment