The Economic Performance in the United States
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Economic Growth
The United States is going through one of the worst economic crisis since the great depression and there are many factors that have contributed to the current situation in the country. Early this year, the Covid-19 pandemic was reported in the country. According to WHO, people were advised to limit their interaction and keep a social distance to limit the spread of the pandemic. Most of the regulations suggested by WHO meant that many companies were closing down to limit the spread of the pandemic. As a result, many people lost their jobs and the economy was drastically affected. There were also many directives that were issued by the government including locking down the country and this escalated the poor economic performance in the country. The president of the United States repeatedly insinuated that the economy of the country was doing well but, statistics from different bodies contradicts the statement of Donald Trump. Economic observers intimate that Donald Trump and his administration should take responsibility on the poor performance of the economy. Donald Trump and his administration made decisions that ended up isolating the country from the rest of the world. Many countries around the globe depend on each other to grow their economy. Therefore, it is important to have leaders who can make sound decisions that do not alienate the country from international community.
When Donald Trump took power in 2016, the country was on the right path of economic recovery. The former president Barack Obama had fostered good relationship with international trade partners and the country was doing well in terms of trade. Many companies were performing well and several people were investing in the country. However, when Donald Trump took power, he initiated unnecessary war of words with different international partners. The president’s first target was The People’s Republic of China. Donald Trump initiated trade tariffs on most of the products from China. According to New York Times post, “American tariffs on foreign goods had already climbed higher than any time since the 1960s before Sunday, when the United States imposed a new 15 percent tariff. The levies on food, clothing, lawn mowers and thousands of other “Made in China” products come as the president prepares to tax nearly everything China ships to America.” It is critical to note that China is one of the largest economies in the world and a very important trading partner to the United States. The president’s move to increase tariffs on foreign goods allowed businessmen who import products from China to increase the prices of their products and this ultimately affected ordinary citizens who purchase most of the products imported from China because of their affordability. Although the president may have taken this steps to cushion and protect domestic companies from competing with foreign companies, it is critical to note that with the advancement of technology and infrastructural development experienced by many countries, it is vital that the market is left to self-regulate with minimum interference from the government.
Looking at the history of the United States, Donald Trump undertook the steps that the Republican government took in 1861. In 1861, the Republican government increased tariffs with the pretext of shielding businesses from competition. Although the economy performed well for nearly a decade, there was another scare of depression towards the end of that century. This clearly indicates that raising tariffs is not a solution of solving economic problem in the country. During the First World War and the Second World War the country’s economy performed relatively well compared to other countries because the United States did not have much enemies and traded with most of the countries that were at war with each other. From the history of both World Wars, it is evident that when a country like the United States trades with other countries, the economy of the country is likely to improve tremendously. Therefore, the isolationism created by Donald Trump’s administration contributed a lot to the poor performance of the country’s economy since he took power.
President Trump’s economic policy has been cited by economic observers has one of the things that the president got it wrong from the beginning. For example, when he took office, the president wanted to repeal the Patient Protection and Affordable Care Act. This is an Act which was enacted during Obama’s tenure and which ensured that most Americans who could not access medical care because of lack of funds could afford to access medical services. It is estimated that close to thirty two million Americans benefited from the Act. It is critical to note that there is a correlation between a healthy nation and the economy. Another factor that is evident during Trump’s administration is the immigration restriction. Most of the people who have taken part in building America are immigrants. During industrialization, most of the people who were working in farms and railroads were immigrants. It is during industrialization era that America experienced one of the best economy in the history of the country. Therefore, the leadership of the country should come up with policies that guide and regulate how immigrants are allowed into the country without closing the boarders of the country. When Donald Trump issued immigration restriction policy, the country was isolated by most countries including the neighboring countries like Mexico. It is important to note that when a country is isolated, their economy gets affected drastically.
Another factor that contributed to the poor performance of the economy in 2020 is the Covid-19 pandemic. Most people in the country intimate that the president’s handling of the pandemic is one of the factors that contributed to the poor performance of the economy. According to a New York Times article, “Despite several months of large employment gains, America has only partly recovered from horrific job losses in the early months of the pandemic — and the pace of recovery has slowed to a relative crawl. All indications are that the economy will remain weak for many months, maybe even years.” Therefore, it is important that leaders come up with policies that will ensure the economy of the country recovers from the ruins of the pandemic. This can be achieved if there is the right leaders who can corporate with leaders from other countries.
In conclusion, the economy of the country has stagnated since Donald Trump took over from the former president. Economic observers posit that the poor economic policies initiated by the president is the major cause of the economic setbacks experienced by the country. Trade wars initiated by the president between the United States and the People’s Republic of China is another factor that derailed the economic performance in the country. Therefore, it is important that the country’s leadership comes up with policies that will improve the economic performance of the country.
