The Goldilocks president says he wants to keep the boom alive: Don Pittis

CBC News
U.S. President Donald Trump channelling Goldilocks CBC News | James Alexander Michie

Is U.S. President Donald Trump channelling Goldilocks to help keep the economy from falling into recession? If so, critics aren't sure it's working. (Carlos Barria/Reuters)

It is important to clarify that a recession is a generalized decrease or loss of the economic activity of a country or region. This reduction in economic activity is measured through the decrease, in interannual rate, of the real Gross Domestic Product (GDP), and must occur in a generalized manner for a significant period of time. There is no agreement in the doctrine about what this period is, although, over time the opinion issued by Julius Shiskin has been extended in an article published in the New York Times in 1975 around two consecutive quarters of fall as Definitive term for the term.

Without a doubt, there are many who are holding the collective breath waiting for the next recession, while for his part, US President Donald Trump says he wants to do everything possible to avoid it.

In reference to this, it is already well known that Europe and China are also looking for correct ways to avoid recession.

Inevitable aspect

It should be noted that while most economists accept that periodic recessions are inevitable, some even think they are useful, Trump is fervent in his determination to stop the recession and maintain the right economy. The European Central Bank and China seem to be on the same page, especially for fear of political consequences once the music stops.

Likewise, Trump who has repeatedly asked the Federal Reserve president, Jerome Powell, to reduce rates to help boost the economy, criticized him on Friday as an “enemy” and similarly imposed confusion when ordering companies Americans who stop buying from China, which puts the markets in a new spiral. Meanwhile, Powell was concerned that rate cuts were not the solution to a continuing trade war.

Certainly, a certain type of conservative economist sees economic recessions as an unpleasant medicine that kills companies of over-borrowed zombies and restores wages. While at the other extreme, some Marxists have anticipated the fall of capitalism so that it can be replaced by a communist paradise.

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Source: Don Pittis | CBC News

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