“It’s a Great Day for Everybody!”
SIMPLE & QUICK: Desperate to drown out the dying and the dead, Trump toys with terrible numbers, tempting fate instead of trusting science
The President of the United States held an impromptu press briefing in the Rose Garden this morning. POTUS boasted that the “Greatest economy ever” has been reignited. In fact, the President insists that, “It’s a rocket ship! Far greater than a V!” He’s still sound on the stump, but sources report differently for the Commander in Chief.
Regardless, Donald Trump has found empowerment in the May jobs numbers— and even encouragement in the “improved” 13.3% unemployment rate. Prominent economists and investors alike assumed another disappointing jobs report was in the cards for May. But his critics were wrong. So, the 45th President takes his victory laps. But what do the numbers mean?
Hidden amidst the President’s morning showboating and bluster, there was no mention by the President of the Paycheck Protection Program. PPP injected $600 Billion of forgivable loans into the US economy as direct loans to American businesses. For the loans to businesses to be forgivable, employers are to recall workers and maintain 100% payroll.
By May, States also began their phased re-openings. Some as early as the last week of April. This meant for Georgia that salons and certain retail stores were back open. As were tattoo parlors and bowling alleys. For Tennessee, most business reopened in some capacity. Other states like Colorado, Minnesota, Mississippi, and Montana opened to a lesser extent, but still allowed workers to return. Did America’s job losses bottom out in April? Was May the month signaling the V-shaped economic return?
Unfortunately, no. Yes, the combined effects of The House of Representative’s Payroll Protection Program and States re-opening has provided a small and much welcomed bounce. But the terrain caused by the cratered economy, gives the economic ball an uncertain trajectory and direction. It is like dropping a football.
July 1st also marks States re-budgeting for the next fiscal year. Unless Congress and the President agree to a bailout package for the States, there will be a new wave of furloughs, layoffs, and terminations from State budget shortfalls in July. Many of these budget cuts will fall on first responders such as police, firefighters, and EMS. They will also effect teachers and vital community members in public transportation such as buss drivers.
Meanwhile, the first States to re-open in late April are now seeing a rise in their daily new coronavirus cases. America may be going back to work as the jobs numbers for May depict, but at what peril? The life-saving unemployment insurance payments extended to Americans are also about to expire. As will Cobra benefits. May data also includes a 48% rise in US bankruptcies as compared to May 2019.
What is duly noted at today’s Trump Administration Rose Garden presser, is an in-your-face-apparent disregard of CDC physical distancing measures. Neither in the staging nor the seating are precautions anywhere to be seen. And of course, there is this bizarre moment, followed by this unhelpful rerun.
To be continued . . .