Tags: Trump | Worst | Recovery | economy

Trump: This is the Worst Economic Recovery Since World War II

Tuesday, 08 May 2012 09:38 AM

The United States is stuck in its worst recovery from an economic downturn since World War II and probably won't see meaningful improvement this year as businesses put investing on hold to see how presidential elections unfold, says real estate magnate Donald Trump.

While emerging markets like Turkey and the country of Georgia are booming, the U.S. gross domestic product (GDP) is limping along.

"I think real GDP here is 1 percent, if that," Trump tells CNBC.

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video

"We're going very, very slowly, and we're probably getting a little bit better but it's certainly probably the slowest recovery since World War II," Trump says.

"I don't think optimism's great and perhaps we have to see what's going to happen with the presidential race. Perhaps people are waiting to see what's going to happen," he said.

Pointing to the country of Georgia as an example of how smaller government leads to prosperity, Trump says the U.S. needs to focus more on cutting spending if it wants to see better days return.

"A lot of people and a lot of the countries that are doing the best, they went to our system from years ago, and we're going to their system it seems more and more," Trump says.

To avoid going the path of Southern Europe, cutting spending must take priority.

Raising taxes and hiring teachers for example, may sound productive, but sooner or later the government will find a way to mishandle the money.

Take the Iraq War.

"You throw it into Iraq. Iraq, by the way, has the second largest oil reserves in the world and we spent $1.4 trillion and what do we have out of Iraq? We've left, it's gone, they have their oil, they're making a fortune, we get nothing," Trump says.

Furthermore, Iran will exert greater control over Iraq somehow now that the U.S. is withdrawing, which makes the entire military campaign in the oil-rich Middle Eastern nation even more pointless, Trump points out.

"When we spend the kind of money we spend in Iraq — people are wondering what are we going to do with the money? They raise our taxes and then they take it and throw it away on one of their many follies, because they are follies."

Meanwhile, cutting spending should take priority over raising taxes.

"What we do have to do is cut expenses," Trump says. "When we spend the money and we don't cut expenses, people are saying 'I don't want to pay more taxes' and that's understandable."

The economy and how to fix it will take center stage this election season, and President Barack Obama, who favors slapping taxes on wealthier Americans, has already admitted the country hasn't healed enough in a message to voters wondering why the economy remains mired in tepid recovery close to five years after the recession began.

"Instead of losing jobs, we're creating them. Over 4.2 million so far," an Obama ad says, before acknowledging that "we're not there yet…it's still too hard for too many," ABC News reports.

Former Governor Mitt Romney, the presumed Republican nominee, was quick to fire back at Obama's suggestions he inherited a sour economy, which polls reveal that many Americans see mired in recession and having never recovered at all.

"After a doubling of gas prices, declining incomes, millions of foreclosures, and record levels of unemployment, Americans know they're not better off than they were four years ago," Romney spokeswoman Amanda Henneberg tells ABC News in an emailed statement.

"Mitt Romney's pro-growth agenda will get America back on track and stop the middle-class squeeze of the Obama economy."

Other high-level Republicans agree that Obama's claims he inherited a mess won't work.

"President Obama spends a lot of time looking backward and blaming others for the state of the American economy," RNC Chairman Reince Priebus says, adding "Obama may want you to forget he's been president for the past three and a half years," according to ABC News.

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video

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