(PresidentialWire.com)- Lockdown has crippled the American economy. Even President Donald Trump can’t save it at this rate, as data shows the United States economy shrinking by almost 33% for the April-June quarter. It is the biggest, most devastating contraction in the economy since records began in 1947.
Democrats are likely to use these numbers against President Trump, but will they recognize the fact that the economies hurt the most are the ones who have been forced into lockdown? Democrat-run states and cities have seen the most extensive lockdown measures put in place, stopping business owners from being able to make a living.
The United States’ gross domestic product, which measures the output of goods and services sold by the company, shrunk by some 32.9%. The worst shrinkage of GDP before this was in 1958, when GDP dropped by 10% in a quarter.
The economic impact of COVID lockdown is more than three times worse than the worst example in living memory.
Between January and March, the economy retracted by some 5% – which might seem manageable, but it included the loss of tens of millions of jobs. Again, this was a direct result of lockdown measures forced through by politicians on both sides of the aisle (but mostly Democrat) and not a result of the virus itself. Since then, many states have left and re-entered lockdown, with Democrat states barely having left lockdown at all.
According to the Centers for Disease Control and Prevention, the Dow has dropped by over 500 points.
Mark Zandi from Moody’s Analytics explained to CNBC that the new data shows “how deep and dark the hole is that the economy cratered into in Q2.”
“It’s a very deep and dark hole and we’re coming out of it, but it’s going to take a long time to get out,” he added.
President Trump could be hurt badly by these numbers, not because he’s responsible but because the Democrats will claim he is responsible. Tim Murtaugh, the communications director for the Trump reelection campaign, said that the data reflects “April through June, when much of the economy was essentially closed down to save millions of American lives.”
“The media is also grabbing onto the annualized number which supposes that the economic conditions will remain the same for an entire year, which it undoubtedly will not,” he added.
Let’s see how things go by the time the next lot of data is released. With many states reopening and people getting back to work, we could see some good numbers before November.