In response to the announcement of 3rd quarter GDP numbers and the Trump Administration’s nonsensical celebration of it, Protect Our Care’s Coronavirus War Room Director Zac Petkanas released the following statement:
“The Trump campaign and administration officials patting themselves on the back over today’s economic numbers should leave their gilded towers and take a walk down any Main Street in America to see the real impact of the economic collapse they caused by their failure to get the virus under control.
“They’d see shuttered businesses and another 750,000 people filing for unemployment last week. They’d see 8 million Americans who have been pushed into poverty since May and families struggling to put food on the table still waiting for COVID relief after Republicans killed any meaningful proposal. They’d see that we’re still in the midst of an economic downturn that’s worse than the Great Recession.
“The only person who’s better off under the Trump economy is Donald Trump, who has leveraged his position of power to pad his own pockets.”
Background:
Experts Agree That GDP Growth Doesn’t Tell The Full Story:
- Justin Wolfers, Economics Professor At The University Of MIchigan: “The Economy Is Roughly As Far Below Its Peak As In The Darkest Days Of The Last Recession.” “GDP rose by +7.4% in Q3 (pretty much exactly as expected), after falling by -9.0% in Q2 and -1.3% in Q1. All told, the economy is -3.5% smaller than it was at the end of 2019. For context, the economy is roughly as far below its peak as in the darkest days of the last recession… There will be lots of political chatter about today’s GDP number. It’s true, Q3 is a record rate of growth. But note Q2 was a record contraction, the likes of which we’ve never seen before. Big jump down, big bounce back. What really matters is that we’re not all the way back. So where are we? The economy is -3.5% smaller than it was in late 2019. Is that a big hole? Well, that’s roughly as large as the hole the economy fell into during the financial crisis, and at the time we thought that a damn big hole.” [Twitter, @JustinWolfers, 10/29/20]
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- Jay Shambaugh, Professor Of Economics At George Washington University, Former Member Of President Obama’s Council Of Economics Advisors: “We Are Now Basically Where We Were At The Depth Of The Great Recession.” “The economy had the biggest collapse since the Great Depression and bounced partly back. We are now basically where we were at the depth of the Great Recession (down 3.5% from peak vs. down 4.0% from peak at the worst point of Great Recession).” [Twitter, @JayCShambaugh, 10/29/20]
- Ben Herzon, Executive Director Of IHS Markit: “The Unemployment Rate Is Still High, Wage And Salary Income Is Still Low.” “While the economy has revived considerably since last spring, it is far short of its level before the pandemic. And progress is slowing. ‘Employment has come back to some extent, but the unemployment rate is still high, wage and salary income is still low,’ said Ben Herzon, executive director of IHS Markit, a forecasting firm. ‘Demand is still being depressed by the pandemic.’” [New York Times, 10/27/20]
- Jay Shambaugh, Professor Of Economics At George Washington University, Former Member Of President Obama’s Council Of Economics Advisors: “We Are Now Basically Where We Were At The Depth Of The Great Recession.” “The economy had the biggest collapse since the Great Depression and bounced partly back. We are now basically where we were at the depth of the Great Recession (down 3.5% from peak vs. down 4.0% from peak at the worst point of Great Recession).” [Twitter, @JayCShambaugh, 10/29/20]
- Herzon: “[The Recovery] Is Bending Off Pretty Sharply.” “The bad news is that progress has slowed sharply since that spring rebound. Many economists have recently revised downward their forecasts for the end of the year, in part because Congress did not provide more stimulus money before the election. ‘The recovery has been faster than expected, but it is bending off pretty sharply,’ Mr. Herzon said. ‘We got a sharp recovery, but there appears to have been a limit to that recovery.’” [New York Times, 10/27/20]
- Claudia Sahm, Former Federal Reserve Economist: “If We Are So Deep In A Hole… Switch Flippin Is Not That Important.” “‘Have we moved into a growth stage and thus out of a recession?’ said Claudia Sahm, a former Federal Reserve economist and an expert on recessions. ‘If we are so deep in a hole still, then that switch-flipping is not that important. It does show we’re going in the right direction. With the second wave going, we might not much longer.’” [Washington Post, 10/29/20]
Millions Of Americans Are Still Unemployed:
- More Than 65 Million Americans, Roughly 40% Of The Labor Force, Have Filed For Unemployment Since The Beginning Of The Pandemic. “The latest jobless claims figures from the Labor Department, which cover the week ending Oct. 24, show that 751,000 workers sought aid last week, about four-times the pre-crisis level. More than 65 million Americans ‒ roughly 40% of the nation’s labor force ‒ have sought jobless aid since the coronavirus lockdowns began in mid-March.” [Fox Business, 10/29/20]
- Roughly 23 Million Americans Are Currently Collecting Unemployment Benefits. “Overall, just about half the week-over-week reduction in the total number of unemployment recipients is likely attributable to a return to work, according to Stettner. Roughly 23 million Americans are collecting some form of unemployment benefits.” [CNBC, 10/22/20]
- 8 Million Americans Have Fallen Into Poverty Since May. “The number of Americans living in poverty grew by 8 million since May, according to a Columbia University study, which found an increase in poverty rates after early coronavirus relief ended without more to follow. Although the federal Cares Act, which gave Americans a one-time stimulus check of $1,200 and unemployed workers an extra $600 each week, was successful at offsetting growing poverty rates in the spring, the effects were short-lived, researchers found in the study published Thursday.” [NBC News, 10/16/20]
- As Many As 34 Million People In The US Could Face Eviction This Month. “The coronavirus pandemic has made it difficult for many Americans to generate income and, as a result, pay their rent. As many as 34 million people in the U.S. may be at risk of eviction, according to a new analysis by global advisory firm Stout Risius Ross. Around 1 in 6 renters were behind on their payments in September. That pattern is likely to continue in October.” [CNBC, 10/2/20]