Tag Archives: market correction

Trump takes credit for the Obama economic recovery, but will not take the blame for the next market correction and recession when it comes

Over the weekend, Clad in pink and vowing to vote, activists around the globe flooded streets for another women’s march.

The serial sexual predator and misogynist Twitter-troll-in-chief couldn’t resist trolling the women marchers.

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Donald Trump, once again, is taking credit for the economic recovery that his predecessor, President Barack Obama, handed off to him.  Former Treasury Secretary Lawrence Summers explains at the Washington Post, Trump doesn’t deserve credit for all the economic good news:

President Trump will be attending the World Economic Forum in Davos, Switzerland, this week. Inevitably, attention will focus on whether the president projects a commitment to internationalist values or reiterates his truculent nationalism in the name of making America “great again.” Attention will also focus on the durability of the current economic and market upswing that has buoyed the spirits of businesses and investors around the world.

While Trump will probably try to take credit for all the economic good news, it is unlikely that he deserves it. He is president of the United States, not the world. And the economic surprises in the rest of the world have been more favorable than those in America. The scale of upward revisions of growth forecasts for 2017 and 2018 has been higher in Europe, Japan, China and emerging markets broadly than for the United States. Many other stock markets have outperformed those here. If Trump’s pro-business policies were driving the global economy, one would expect an increase in net capital flows into the United States, and so a stronger dollar. In fact, the dollar has weakened significantly in the past year, despite more Federal Reserve tightening than was anticipated at the beginning of 2017.

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