The US economy could be detrimental to Mr. Trump’s reelection campaign
The US economy has shown signs of improvement recently, but the upcoming developments could be detrimental to President Donald Trump’s re-election campaign.
|Dark clouds still cover the US economy as tens of millions of people are still unemployed due to the effects of the Covid-19 epidemic. Photo: AFP|
The labor market is a sign reflect It is quite clear that the US economy is improving. The number of US jobs increased by 6.6 million in July, according to a market report released by the US Department of Labor this week.
In August, US inflation stabilized again, dispelling concerns that deflation would delay growth, while the frequency of customers visiting stores and restaurants in the country also increased. up.
However, the recent good signals of the US economy are being covered by dark clouds. Tens of millions of Americans are still unemployed due to the anti-Covid-19 blockade measures and the growing concern that the new economic bailout package has not yet closed.
At least 29.6 million Americans are still receiving unemployment benefits as of August 22, and the number of people applying for new unemployment benefits is still up, reaching 884,000, according to a market report released this week. .
Washington has not found a common voice for the new economic bailout bill. The US Senate on September 10 rejected the proposed Republican bill that would pump new aid of about $ 300 billion to the economy. While Democrats are pushing a bill of stimulus package up to 3 trillion USD.
Economic experts at the Bank of America multinational bank assessed that the US economy has recovered partly thanks to the strong fiscal stimulus policies over the past time, but now those policies have faded. “It is very likely that the new fiscal stimulus package will not be approved before the 2020 presidential election (November 3)”, predicted by Bank of America.
Each unemployed US worker is subsidized $ 600 / week under the government’s $ 2,300 billion government bailout package approved in March, but it ended in July. And yet, hundreds of billion USD to support businesses Small-scale workers under this stimulus package cannot disburse.
The above existence may weigh on the mentality of American voters. Michael Arone, an investment expert at State Street Global Advisors, is concerned that if the labor market does not improve, there will be “some trouble for the incumbent (US President Donald Trump)”.
Currently, the weekly subsidy of $ 300 for the unemployed, which Mr. Trump authorized to implement, is also effective, but this support only lasts for 6 weeks.
The number of new Covid-19 infections in the US has decreased since July, but the virus is still highly infectious, so many businesses are only allowed to operate at low capacity, while some other businesses are temporarily stop working. This hinders the rate of economic recovery of the United States.
Steven Englander, chief executive of Standard Chartered Bank, said that government aid is gradually decreasing as the US presidential election on November 3 is approaching, which could be a bad time for the president. Donald Trump.