WASHINGTON – Despite promising growth of up to 6%, President Donald Trump led an economy that grew by just 1.9% in the third quarter – a number that Trump said signaled an economy "in deep problems "When it happened under his predecessor.
The Ministry of Commerce report released on Wednesday was the second of the last four, indicating a growth rate of less than 2%. This will probably result in a total growth rate of less than 2% for the entire 201
As it seems, Trump's 2019 growth rate is on average 2.33%, slightly lower than former President Barack Obama's 2.37% average over the four years of his second term, according to a HuffPost analysis of Commerce Department data.
"The king is getting more naked every day," said Joe Walsh, a former Illinois congressman now running against Trump for the Republican presidential nomination in 2020 .
"It's tri to reveal that Donald Trump is now touting the same quarterly growth rate that he attacked our administration for during the recovery, "said Andrew Bates, Democratic presidential campaign spokesman for former Vice President Joe Biden. "Donald Trump, on the other hand, inherited a strong economy from us, in the same way that he has achieved everything in his life, and is now destroying it."
The announcement of the recessionary economy on Wednesday led the Federal Reserve Board to cut a key policy rate by a further quarter percentage point, which is the third reduction this year. While Chairman Jerome Powell said the economy could continue to expand with low unemployment and low inflation, "our views on the path of interest rates that will best achieve these results have changed significantly over the past year."
Most economists blame much for the decline in Trump's trade war with the rest of the world, which has increased the cost to US consumers, who paid billions of dollars in import taxes, while reducing US exports to other nations due to retaliatory tariffs. American producers and farmers have been particularly hard hit.
White House spokesman Judd Deere, however, adhered to Trump's pattern of blaming Powell and the Federal Reserve Board. "Despite seven interest rate increases since President Trump took office and a global recession, this president's policy of lower taxes, deregulation and fair and mutual trade has supported the longest economic upturn in US history with record low unemployment and rising wages," Deere said.
But for a president who has counted on a strong economy to overcome his personal unpopularity with wide swaths of voters, the figures below Wednesday's summit are even more ominous.
Business investment, an indicator of how those nearing hiring and purchasing feel for the future, was down for the second quarter: 3% less in July to September than April to June, which even had a 1% reduction compared to January to March.  "No matter how you calculate, there is definitely a decline," said Ben Herzon, director of US economics at IHS Markit. He said that while growth of 1.9% was slightly higher than expected, he believes some of the underlying factors that caused the last quarter's shock – higher than expected federal government spending and stocks that increase inventory – will fall, and therefore reduce growth in the fourth quarter.
"We lowered the forecast for GDP growth in the fourth quarter by 0.3 percentage points to 1.7% based on this trend," he said.
Trump did not speak to the news media on Wednesday, but announced via Twitter, "The Greatest Economy in American History!" About an hour before the release of gross domestic product figures.
This claim is not correct. There have been several periods when the economy grew faster: under the conditions of Ronald Reagan and Bill Clinton, as well as after World War II. Reagan saw an average growth rate of 3.5% in its two terms, while Clinton had 3.9%. The eight years that spread the words of John F. Kennedy and Lyndon Johnson in the 1960s had an average GDP growth of 4.95%.
George W. Bush had an average growth rate of 2.5% in his first term, but only 1.3% his second period, after the economy collapsed in a deep recession that lasted through Obama's first year in office.
Unlike Obama, Trump began with a relatively strong economy, despite his frequent but baseless statements that it was "on the wrong path" and about to collapse.
Trump's first year in office had an average growth rate of 2.8%, falling to 2.5% in 2018, despite a large tax cut that allowed companies to cash in. Over the past four quarters, the rate has averaged just 2.03
These numbers are in stark contrast to what Trump promised, both as a candidate and then as incumbent president.
"We want in my opinion at least 4% growth," Trump told Fox News in October 2015 . ”And I think we could even see 6% growth. "
" We're going to have a huge GDP. It's going to be 4%, and it might even be higher than that, "he told an Ohio television station a year later.
And Trump returned to 6% in December 2017, "This is far beyond what anyone thought it would be," he said of recently released figures that showed a growth rate of 3.2% per quarter. "I see no reason why we don't go to 4, 5 and even by 6%. "
Jared Bernstein, once a top economist for Biden, said that 6% boasting was never remotely possible.
" It was pointless, Trumpian nonsense. More German is the administration's official financial estimate of 3% real GDP growth as far as the eye can see, Bernstein says. “It was also unfounded, as it was partly based on fantasies about the tax cuts that stimulated investment. In other words, worn out fairy dust that once again has failed to deliver. ”
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