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Tags: stephen moore | recession | economy | troubled waters

Stephen Moore: US Plunging Into 'Troubled Waters' and Another Recession

Tuesday, 07 June 2016 08:12 AM EDT

Newsmax Finance Insider Stephen Moore warns that the dismal jobs report is only one of the many signs that the nation is in true economic trouble and could plunge into yet another recession.

“America may be skidding into another recession and the latest abysmal jobs report is the latest sign of troubled waters ahead,” Moore, a distinguished visiting fellow at The Heritage Foundation and economics contributor to FreedomWorks, wrote for Forbes.com.

The Bureau of Labor Statistics said U.S. companies added just 38,000 nonfarm payrolls during the month. Economists were expecting 160,000. Meanwhile, the unemployment rate fell to 4.7% in May from 5.0% in April, but this was largely because 458,000 workers dropping out of the labor force.

“If these trends continue Obama will leave office with the lowest unemployment rate ever and the fewest Americans working,” Moore wrote for Forbes.com.

“What we are seeing right now is a soft business recession,” Moore wrote.

“But there are other signs of illness that can’t be ignored and augur poorly for future growth. Business investment has been negative now for six months. Business profits have fallen. And small business confidence measured by the NFIB is sagging at recession area lows,” he wrote.

Moore isn’t alone in his pessimistic view of the economy.

Larry Summers, the former Treasury secretary under President Bill Clinton, also sees the nation plunging into a recession, but not because of the jobs situation

Electing Donald Trump could also plunge the U.S. and the world into a recession, Summers argues.

"If he were elected, I would expect a protracted recession to begin within 18 months," Summers writes in the Washington Post. "The damage would in all likelihood be felt far beyond the United States."

Summers lists many reasons he fears that Trump could seriously damage the world economy. Trump is unpredictable and could easily create instability — and markets don't like uncertainty.

"Creating an environment where every tradition of the rule of law, internationalism and consistency in policy is up for grabs would be the best way to damage a still-fragile U.S. economy," writes Summers,  professor at and past president of Harvard University.

"In no election in my lifetime has a major-party candidate for president been so dangerous for the economy," Summers, who was treasury secretary from 1999 to 2001 and an economic adviser to President Barack Obama from 2009 through 2010.

(Newsmax wire services contributed to this report).

© 2024 Newsmax Finance. All rights reserved.


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Newsmax Finance Insider Stephen Moore warns that the dismal jobs report is only one of the many signs that the nation is in true economic trouble and could plunge into yet another recession.
stephen moore, recession, economy, troubled waters
399
2016-12-07
Tuesday, 07 June 2016 08:12 AM
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