Billionaire businessman Donald Trump warns that the United States is in another recession, and the volatile "bubble" stock market only proves President Obama’s economic policies have failed.
"I hope I'm wrong, but I think we're in a big, fat, juicy bubble," the Republican presidential candidate told CNBC.
He also called the January U.S. jobs report released Friday a "phony deal," saying that the headline unemployment rate does not include those who have stopped looking for work. The U.S. economy created 151,000 jobs in January as the unemployment rate fell to 4.9 percent, but a broader measure of unemployment held steady at 9.9 percent, CNBC explained.
Trump said he would seek to curb so-called tax inversions, in which companies carry out an acquisition and change their tax address to potentially pay lower rates abroad, CNBC reported.
“I would cut taxes very substantially. Because we're losing our companies, they're moving out and leaving jobs behind by the thousands,” he said.
Trump said that it’s foreign nations like China, Japan, and Mexico — and Ireland, which is taking pharmaceutical giant Pfizer away from the United States now — that are to blame.
“We're the highest taxed nation in the world or very close. I would do a large tax cut for business and middle class and we have to keep our companies here. I would try to get the trillions of dollars outside of the country, I would get it back in,” he said.
“I think you’re sort of in a recession now, you’re certainly in a jobs recession now,” Trump recently told Breitbart News.
“We have millions of people out of work, and the jobs they have are bad jobs. We’re in a bubble. We’re in a bubble. The sad part is it may not pop now, it may pop two weeks into the new administration and the new administration will be blamed for it. One of those things, right? But we’re in a bubble and it’s going to be ugly,” he said.
But he vows to restore a healthy, flourishing employment market to what he now sees as a once great nation lingering on life support.
"We’re going to bring our jobs back, we have to bring our jobs back. We’re losing our jobs to Mexico and China and Japan and every country. Everybody is taking our jobs. We have an open policy on losing jobs. And we have to bring our jobs back—the jobs we have, that phony 5.2 percent, the jobs that we have are terrible jobs. They’re considered bad jobs," he said.
"We’re going to bring the jobs back, and it’s not even going to be hard. We’re going to lower taxes and get these companies to start coming back here. Many companies are leaving the United States—and I’m going to stop it. I will stop that very quickly," he told Breitbart.
As for prospective voters who doubt his promises, Trump says his record as a businessman speaks for itself.
“I’ve employed tens of thousands of people over the years,” Trump replied to Breitbart when asked why he’s better to fix the broken economy than anyone else in either political party. “I’ve built an unbelievable company. You saw how good it is when I did my filings. I built an unbelievable company. I have done an amazing job with employment, with healthcare, with education for my employees," he said.
"These politicians don’t know where to start. They don’t know about stopping companies from going out, leaving, like Pfizer. I will be the greatest jobs-producing president that God ever created. I’ll do a great job.”
Politics aside, Wall Street's nerves are on edge as talk of a recession dominates conversation as stock and oil prices continue to slide.
Growth in the U.S. decelerated to a 0.7 percent annualized rate in the fourth quarter as companies contended with a slower global economy. The median probability for a U.S. recession in the next 12 months jumped to 19 percent in last month’s Bloomberg
survey of economists, the highest since February 2013.
“While it’s always possible that a market correction becomes something more significant, we, at Blackstone, do not see a recession in the U.S.," Stephen Schwarzman, chairman and CEO, Blackstone Group LP, recently said. "We do believe that global GDP growth is slowing, and we’ve seen a slowdown within certain sectors and regions in our global portfolio as a result."
(Newsmax wire services contributed to this report).
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