Baltimore – The coronavirus threw the United States economy into a dangerous downward spiral, and the president’s re-election hopes Donald trump they are already caught in the sudden whirlwind.
For the next seven months, Trump could be campaigning in a country haunted by fear of job loss, bankruptcy, and illness. This will require a notable pivot for the president, who has relentlessly applauded the rise in the stock market and the strength of the economy as the central predicate for a second term.
Many economists say the expected federal stimulus will not prevent a recession. Lawmakers presented a $ 1.4 trillion emergency plan and said that, along with other Federal Reserve measures, the bailout could inject $ 2 trillion into the US economy.
The actions have already collapsed. Businesses and schools are closing to try to contain the spread of the virus. Unemployment insurance applications suggest that weekly layoffs may soon overshadow the worst of the previous economic crisis. Analysts at Goldman Sachs Bank estimate that 2.25 million Americans applied for unemployment aid last week, just over the total number of jobs created in all of 2019.
“Nothing can stop an economic recession now,” said Aaron Sojourner., a professor at the University of Minnesota and a former White House economist. The expert added that the main questions lawmakers face are how the country can weather a recession, when the widespread quarantines can end and how enough jobs can be preserved to fuel a recovery.
The economy and politics have collided in such a profound way that no one knows how the elections will unfold in November. Trump’s fate may depend on how long the recession lasts and whether Americans consider it to be an external impact caused by nature or the result of government negligence or incompetence.
“The situation is not good, that is different from saying that the president is responsible for it,” said Patrick Ruffini, a Republican strategist. “It is much easier to explain a deep recession as an act of God.”
However, voters may not feel as forgiving. The administration has repeatedly minimized the economic and health risks of the coronavirus. Just a month ago, the top White House economist suggested in a meeting with journalists that the pandemic would do little harm to growth.
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