The significant threat to the economy from China’s rapacious policies of restricted access to its markets, intellectual property theft, dumping and other practices long ignored by Washington, is finally being addressed by the White House. While this could result in some substantive temporary issues, the long-term result will be a significant boost for the U.S. economy.
Stephen Moore stated in a Heritage Foundation/Washington Times study that “Beijing’s abusive trade practices and theft of U.S. intellectual property ($300 billion stolen per year), are intolerable…”
His analysis explains that,
“The United States is simply a better place to invest in today than it was two years ago. If/when Mr. Trump prevails and gets the concessions from China, the market upside is gigantic and that’s what isn’t being discounted into the market today. There’s an old saying that Wall Street economists have predicted eight of the last two recessions. The bears in the economics profession keep getting paid a lot of money misreading the nation’s economic weather. […] The boom began on Nov. 8, 2016, not in 2009. The recovery was anemic in the Obama years.”
A biased media continues to overemphasize negative indicators. It’s more than just poor journalism. The type of fear generated by that incorrect reporting can lead to a lack of confidence that actually could spur a recession. In an analysis for the Federal Reserve, David S. Miller warns, “It’s hard to predict recessions. We haven’t had many, and we don’t fully understand the causes of the ones we’ve had. Nevertheless, we persist in trying.”
As Joseph Valle reported in Newsbusters that the leftist media hyped recession fears every single day in June and July.
“… At least one journalist openly sided with left-wing comedian Bill Maher who wants a recession to get rid of President Donald Trump. NBC’s Richard Engel chimed in “Short-term pain might be better… after Maher said ‘I really do’ want a recession on HBO’s Real Time with Bill Maher Aug. 9.
“A recession is generally considered two quarters or more of negative economic growth. That hasn’t stopped the media from pushing “dark clouds” and the likelihood of a recession coming soon, possibly even before the 2020 election. That could have serious consequences if economist Mohamed El-Erian was correct when he warned “we’ve got to be careful because we can talk ourselves into a recession.”
Gregory Daco, writing in The Hill warns that, “We must not turn recession fears into self-fulfilling prophecies.”
Frank Vernuccio serves as editor-in-chief of the New York Analysis of Policy and Government.