As #TrumpRecession trends on Twitter and the liberal media panic over a “coming economic meltdown,” economist Art Laffer took a different view.
The former economic adviser to President Ronald Reagan told Fox News that he wasn’t currently worried.
“I’m not at, right now, concerned about a recession,” Laffer told America’s Newsroom. “We have great policies in. This administration has done a great job on taxes, on monetary policy, on regulatory policy.”
In his view, the problem is the rest of the world was “having a tough time,” especially China. Laffer mentioned President Donald Trump’s sale of $2 billion worth of weapons to Taiwan and the ongoing protests in Hong Kong.
“Xi’s having a very, very bad day, and the sooner he gets his act together and does a trade deal with the U.S. the better off we’ll all be,” Laffer added.
But there was some good economic news on Aug. 15, according to CNBC. It reported that “key business activity indexes for New York and Philadelphia pointed to continued expansion in August amid worries that the U.S.-China trade war was dampening growth prospects.” Although lower than in July, CNBC found “they were solidly in growth territory.”
U.S. retail sales also rose 0.7% in July, beating expectations and “easing fears about economic growth at home and worldwide,” according to the Aug. 15, Investor’s Business Daily.
Surprisingly, left-wing Vox admitted on the same day that “Even though certain factors signal a recession might be coming, that doesn’t mean it’s a foregone conclusion — the stock market got extra rocky at the end of 2018, partly because of fears of a recession, and here we are more than six months later and it hasn’t happened yet.”
Even former Fed Chair Janet Yellen told Fox Business on Aug. 14, that the American economy was most likely not heading towards a recession.