The US economy jumped 33.1% from July through September – the highest on record – following a COVID-induced shrinkage of 31.4% during the previous quarter. Consumer spending, which represents nearly 70% of economic activity, jumped by a record-breaking 40.7%.
While overall GDP for the year is expected to contract by 4%, the quick rebound validates some of Trump’s controversial policy decisions during the pandemic.
“The president built the world’s best economy once and he’s rapidly doing it again, proving that cutting taxes and reducing regulations and red tape clear the way for American ingenuity and our entrepreneurial spirit to thrive,” said Trump campaign communications director Tim Murtaugh.
Business investment is up 20.3% and housing construction/renovation is up nearly 60%. Unemployment has also improved, with jobless claims dropping to 751,000 for the week ending in October 24th after reaching a peak of 6.8 million in March.
“There’s a long way to go until the economy’s healed,” says economist James Knightley, noting the “squeeze on incomes coupled with anxiety about COVID coupled with election uncertainty.”
On average, Americans’ disposable income dropped by roughly 13.2% this quarter and personal savings dropped by nearly 50%. About half of the jobs lost during the pandemic remain unfulfilled, leaving more than 22 million Americans dependent on some form of unemployment benefits.
To compare, it took more than two years to regain half of the jobs lost during the recession that occurred while Joe Biden was VP.
“President Trump still has no plan to get our country through this crisis and move us forward,” argues Biden, adding that job gains are only helping “those at the top” but leaving behind “tens of millions of working families and small businesses.”
Perhaps Biden doesn’t know about President Trump’s repeated offers to sign another COVID relief package as long as it didn’t include a blue-state bailout, but Republicans are more than aware of Biden’s planned tax hike, $15 minimum wage, lockdowns, and other initiatives that threaten to reverse the progress our economy has made.
Author’s Note: The economic downturn was caused by intentional shutdowns, not systemic problems. We should expect a snapback of sorts but I am surprised that people think it will happen so fast. It hasn’t even been a year since this whole thing started.