The second quarter of 2020 will probably be the worst for the US economy in the past 120 years. Experts estimates vary, and no one can even really predict how much the US GDP will fall: by 16% or 35-40%.
A theatrical performance with the participation of trump took place on the lawn of the White house. The US President showed two loaded Chevrolet pickup trucks-blue and red. Then a nearby crane lifted the load from the red (Republican) pickup truck.
These machines seemed to symbolize two approaches to the economy вЂ” liberal and conservative. The blue pickup was a reference to previous decades when the US government tried to regulate the economy. The red pickup showed the advantages of the Trump presidency, which removes excessive regulations and makes it easier for businesses to operate.
During Trump's three and a half years in the White House, his team canceled 25,000 pages of various regulations. This saved each American family about $3,000 a year.
Trump's economic adviser, Larry Kudlow, a staunch conservative, is confident that the continuation of this approach вЂ” economic deregulation and tax cuts will allow the US to quickly get out of the current crisis. He supports the rejection of any social contribution payments in 2020, which motivates businesses to actively hire new employees.
Treasury Secretary Steven Mnuchin disagrees with Kudlow's position, who believes that the priority should be to continue direct payments from the state budget to all Americans. As a true Keynesian, Mnuchin doesn't believe in the magic of tax cuts; He wants to give away and spend trillions of dollars, hoping to restart the economy in this way.
Whichever approach wins, the task of reviving the economy is now key for Trump. If he does not achieve rapid GDP growth in the third quarter and a drop in unemployment, he will simply not be able to get re-elected for a second term. Biden, without regaining consciousness, will drive into the Oval office simply by inertia.