How to crash the economy: The only “remedy” is higher taxes
The US economy is rapidly sliding toward a second Great Depression with no end in sight.
In a new video, economist and financial commentator Martin Armstrong calls on economists to “take back the economic narrative.” He argues that only higher taxes and spending by Washington will be able to save the US economy. He adds, “No one is asking us to just go back to the economy of the 1930s.”
On Friday, the US Bureau of Labor Statistics reported the US economy shrank at an annual rate of 2.3 percent in the fourth quarter of 2018, the worst economic performance since the end of World War II. There are now 1.2 million unfilled jobs, the lowest level since 1966. The number of laid off workers has reached the highest level since 1973.
In the fourth quarter of 2018, the US economy experienced its worst performance since President Herbert Hoover left office in 1929.
In fact, there have been many false predictions of a recession as the coronavirus pandemic began to spread.
In March, Fed Chair Jerome Powell said the Fed was done hiking rates. He said they were “at full speed” with the hope to gradually hike rates to “near-zero” come mid-2020, but have no further plan for rate hikes.
In early April, former Federal Reserve Bank of Dallas President Richard Fisher said the economic recovery has only “scratched the surface” and had not yet begun. Fisher called for the Federal Reserve to increase its balance sheet to $4.2 trillion by the end of this year.
Then last week, former Bank of England Governor Mark Carney said the recession is “far from over” and the UK economy is still on track to grow this year by 1.5 percent or more.
Then, as the virus spread, the US government and President Trump tried to get the economy to function without any real plan for the economy. Both the president and his economic advisor, Larry Kudlow, tried to claim that they could save the US economy by having the federal government run trillions in stimulus spending. This would be a massive expansion of the federal government, a move that most economists and voters despise. Neither approach worked.