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Many Remember Solid Economy Under Trump, But His Record Also Full Of Tax Cut Hype, Debt And Disease

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Trump | AP News Image

Washington — Four years ago, there was a lot of dread and chaos.

The death toll was rising as COVID-19 spread. Financial markets were in a panic. Oil prices briefly fell to negative territory. The Federal Reserve cut its benchmark interest rates to address the abrupt recession. The US government embarked on an unprecedented borrowing spree to keep families and companies viable, adding trillions of dollars to the national debt.

However, as Donald Trump recounted that event at a recent rally, the former president oozed pride.

“We had the greatest economy in history,” the Republican told the Wisconsin crowd. “The 30-year mortgage rate was at a record low, the lowest ever recorded … 2.65%, that’s what your mortgage rates were.”

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Trump | Britannica Image

Many Remember Solid Economy Under Trump, But His Record Also Full Of Tax Cut Hype, Debt And Disease

The question of who can best guide the U.S. economy could determine who wins this November’s presidential election. According to an April Gallup poll, Americans are most inclined to say that immigration is the country’s most serious concern, but the economy as a whole and inflation were also on the list.

According to an April poll by The Associated Press-NORC Center for Public Affairs, Trump may have a lead over President Joe Biden on key economic issues. The survey found that Americans were more likely to believe that Trump’s presidency benefitted the country with job creation and lower living costs. Almost six in ten Americans believed Biden’s presidency raised the country’s cost of living.

However, the economic data reveal a much more nuanced reality throughout Trump’s presidency. His tax cuts never produced the expected growth. His budget deficits increased and remained reasonably substantial under Biden. His tariffs and trade agreements never restored all of the lost factory employment.

And then there was the pandemic, which resulted in massive job losses for which Trump bears no responsibility, as well as low inflation, for which Trump takes full credit.

If anything, the economy under Trump’s administration should have lived up to his expectations.

In 2017, Trump told the public that his tax cuts would boost the US economy by “3%,” but he added, “I think it could go to 4, 5, and maybe even 6%, ultimately.”

If the 2020 pandemic is removed, the Bureau of Economic Analysis reports that growth after inflation averaged 2.67% under Trump. With the pandemic-induced recession, the average falls to an anemic 1.45%.

In contrast, growth during then-President Obama’s second term averaged 2.33%. So far under Biden, annual growth has averaged 3.4%.

More government debt

Trump also guaranteed that the people would pay for themselves with his tax cuts due to increased GDP. The cutbacks were broad, yet they disproportionately benefited corporations and those with extreme wealth.

The 2017 tax cuts failed to meet Trump’s promises to reduce the deficit.

According to the Office of Management and Budget, the deficit widened to $779 billion in 2018. The Congressional Budget Office predicted a $563 billion deficit before the tax cuts, implying that borrowing climbed by $216 billion in the first year. 2019, the deficit reached $984 billion, about $300 billion more than the CBO had predicted.

Then the epidemic struck, and with a frenzy of government aid, the ensuing deficit surpassed $3.1 trillion. This borrowing allowed the government to send direct payments to individuals and small businesses during the shutdown, often raising bank accounts and making many people feel better off despite the recession.

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Trump | NBC News Image

Many Remember Solid Economy Under Trump, But His Record Also Full Of Tax Cut Hype, Debt And Disease

Deficits have also been high under Biden, who signed into law a third round of pandemic aid and other efforts to combat climate change, construct infrastructure, and invest in American industry. His budget deficits include $2.8 trillion (2021), $1.38 trillion (2022), and $1.7 trillion (2023).

In a Wednesday study, the CBO calculated that extending elements of Trump’s tax cuts slated to expire after 2025 would add $4.6 trillion to the national debt through 2034.

Low inflation (albeit not always for good reasons)

According to the Bureau of Labor Statistics, inflation was never higher than 2.4% per year under Trump. The annual rate peaked at 8% in 2022 under Biden and is now at 3.4%

During Trump’s presidency, inflation was low due to three factors: the 2008 financial crisis, Federal Reserve initiatives, and the coronavirus epidemic.

Trump took office with low inflation, largely due to the long recovery from the Great Recession, during which financial markets crashed, and millions lost their homes to foreclosure

During Obama’s second term, inflation averaged scarcely more than 1% as the Fed battled to stimulate growth. Nonetheless, the economy was growing without overheating.

However, in the first three years of Trump’s presidency, inflation averaged 2.1%, which was near the Fed’s target. Nonetheless, the Fed began raising its own benchmark rate to keep inflation under the central bank’s 2% objective. Trump repeatedly chastised the Fed for trying to boost growth despite the consequences of rising prices.

Then the pandemic struck

Inflation fell, and the Fed cut rates to keep the economy running during lockdowns.

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Trump | Forbes Image

Many Remember Solid Economy Under Trump, But His Record Also Full Of Tax Cut Hype, Debt And Disease

When Trump hails historically low mortgage rates, he does so because the pandemic has hurt the economy. Similarly, gasoline prices plummeted below $2 per gallon in April 2020 since no one drove due to the pandemic.

The Bureau of Labor Statistics reports that the United States lost 2.7 million jobs during Trump’s administration. If the pandemic months are omitted, he created 6.7 million employment.

In contrast, 15.4 million jobs were created during Biden’s presidency. That’s 5.1 million more jobs than the CBO predicted he’d create before his coronavirus treatment and other initiatives became law, demonstrating how much he strengthened the labor market.

Both politicians have regularly promised to restore factory jobs. Between 2017 and mid-2019, Trump created 461,000 manufacturing jobs. However, during the epidemic, the increases stalled and ultimately turned into layoffs, with the Republican Party reporting a 178,000 job loss.

During Biden’s presidency, the U.S. economy has created 773,000 manufacturing jobs.

SOURCE – (AP)

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Howard Schultz Violated Labor Law By Telling Employee ‘If You’re Not Happy At Starbucks, You Can Go Work For Another Company’

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Starbucks’ interim CEO, Howard Schultz, violated federal labor law in 2022 by telling a California barista who expressed concerns about unionization that “if you’re not happy at Starbucks, you can go work for another company.”

The National Labor Relations Board ruled on Wednesday that Schultz’s statement constituted an unconstitutional, coercive threat.

The decision highlights Starbucks’ difficult relationship with organized labor, as more and more employees at its outlets unionize.

Howard Schultz Violated Labor Law By Telling Employee ‘If You’re Not Happy At Starbucks, You Can Go Work For Another Company’

In 2022, as interim CEO, Schultz visited a business event in Long Beach, California, to address and improve working conditions at Starbucks locations. According to the NLRB, Barista Madison Hall attempted to discuss the benefits of unionization as well as Starbucks’ claimed history of unfair labor practices.

“Why are you angry at Starbucks?” Schultz inquired. He stated that the occasion was not the appropriate forum for discussing union problems before remarking on working elsewhere. The administrative law decision states that he “had an angry expression on his face.” The NLRB ruling maintains an administrative law judge’s decision from October 2023.

Starbucks issued a statement expressing its disagreement with the board’s decision. “Our focus remains on training and supporting our managers to ensure respect for our partners’ right to organize, and we are making progress in our discussions with Workers United,” a business representative said in a statement Thursday.

Though Schultz stepped down from his third term as CEO in March 2023, he remains involved with the company. When he retired from Starbucks’ board of directors in September, the business named him “lifelong chairman emeritus.”

“We note that the judge identified the Respondent’s highest official, interim CEO Schultz, as a ‘legendary leader,’ a status that would exacerbate the coercive nature of Schultz’s statement,” the ruling read.

Since the first Starbucks branch in Buffalo, New York, unionized in 2021, the coffee business has been embroiled in hundreds of labor battles over alleged union-busting practices. In June, the Supreme Court heard Starbucks v. McKinney, a case involving seven employees who were fired after attempting to form a union. The Supreme Court agreed with Starbucks.

An NLRB administrative law judge earlier stated that Starbucks had engaged in “egregious and widespread misconduct” in its dealings with employees involved in unionization efforts at Buffalo outlets, including the first site to unionize. Starbucks dispatched high-level executives into Buffalo-area stores on a “relentless” campaign, according to the judge, which “likely left a lasting impact as to the importance of voting against representation.”

Starbucks stated at the time that it is “considering all options to obtain further legal review,” and that “we believe the decision and remedies ordered are inappropriate given the record in this matter.”

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Howard Schultz Violated Labor Law By Telling Employee ‘If You’re Not Happy At Starbucks, You Can Go Work For Another Company’

The union reports that on October 1, the 500th Starbucks location in Washington state decided to unionize.

The NLRB ordered Starbucks on Wednesday to stop threatening to terminate employees for unionizing and to post a notice of employee rights in all of its Long Beach outlets.

“We are pleased to see the NLRB continuing to advocate for workers and their legal right to organize. At the same time, we’re looking ahead and proud to be on a new journey with the firm,” said Michelle Eisen, co-chair of Starbucks Workers United’s national organizing committee and bargaining delegate, in a statement to CNN on Thursday.

SOURCE | CNN

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Tesla Recalls 27,000 Cybertrucks Due To A Rearview Camera Issue

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CNN | Tesla

Tesla is recalling around 27,000 Cybertrucks due to a rearview camera issue that delays the image being presented on the dashboard, increasing the danger of a collision.

According to a National Highway Traffic Safety Administration (NHTSA) report, the rearview display may appear blank for up to 8 seconds when the Cybertruck is in reverse. That is far over the two seconds required by US federal safety regulations.

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Tesla Recalls 27,000 Cybertrucks Due To A Rearview Camera Issue

Tesla has issued a free, over-the-air software update to address the issue. Drivers can also reverse the Cybertruck by “performing a shoulder check and using their mirrors,” according to the NHTSA.

This is the fifth recall for the electric vehicle, which was released last year. The most recent recall, in June, concerns the truck’s large single windshield wiper and a piece of plastic trim along the edge of the truck bed that might become loose and detach from the vehicle while driving.

In April, the trucks were recalled because the accelerator pedal could become stuck when depressed. Tesla launched a software recall in January for 2.2 million of its cars, including Cybertrucks, due to warning light letters that were too small to read. That issue was likewise resolved with an over-the-air software upgrade.

Tesla Recalls 27,000 Cybertrucks Due To A Rearview Camera Issue

Tesla announced a rise in sales this week for the first time this year, however, year-to-date sales still trail the same period in 2023.

The company delivered approximately 463,000 automobiles worldwide in the third quarter, rising 6% from the previous year’s sales number and 4% from the second quarter of this year.

SOURCE | CNN

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The Biden Administration can go Ahead With Student Loan Forgiveness, Says a Federal Judge.

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Student Loan

(VOR News) – A temporary restraining order that was obtained against the expansive new student loan forgiveness system that was planned by the administration of Vice President Joe Biden will be allowed to expire by a federal judge.

Injunction was issued against the program that was being proposed. It is possible that the execution of this strategy may reduce the suffering of tens of millions of people in the United States of America.

There is a possibility that the idea might be beneficial to as many as three out of every four people who are now in possession of federal student loans, as stated by an estimate that was provided by the Center for American Progress.

This happens because the student loan plan takes into account government initiatives.

A victory was granted to the administration of Vice President Joe Biden, according to an announcement made by United States District Judge Randal Hall in Georgia before the close of the day on Wednesday. The previous Republican president, George W. Bush, was the one who appointed Hall to his current post. Hall now serves in that capacity.

In the next few weeks leading up to the election that will take place in November, it is quite likely that Vice President Joe Biden will press forward with the proposition that his administration has offered to cancel student loans. There is a chance that this will occur given the verdict.

A new condition has emerged as a result of a lawsuit that was filed against the aid package by seven states that are run by Republicans. This lawsuit was filed against the aid package after it was submitted.

There are a number of states that have ruled that the debt cancellation scheme that is now being carried out by the United States Department of Education is illegal. These states include Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio, amongst others.

The conclusions of Hall, on the other hand, indicate that Georgia did not have the legal jurisdiction to launch a legal action against the relief plan. As a result, the state was unable to fulfill the duty of the forum for the application.

The judge made an order that the case be relocated to Missouri because the states argue that the notion that was proposed by Biden would be most detrimental to Mohela, which is the Missouri Higher Education Loan Authority.

Which is responsible for servicing student loans?

The judge issued the order as a result. The United States Department of Education’s spokesman applauded the judge’s finding that Georgia had “no legal basis” to pursue the action; yet, the spokesperson also criticized the Republican drive to prevent relief from being granted. The verdict made by the judge was lauded by the authorized spokesperson.

This case is the outcome of an ongoing campaign by Republican elected officials who, according to what they claimed, seek to prevent millions of their own people from having breathing room on their student loans. This campaign is the cause of this complaint.

That campaign is reflected in this lawsuit that has been filed. “The fact remains that this lawsuit reflects an ongoing effort.”

Our efforts to improve the flawed student loan system and to provide support and relief to borrowers all throughout the country are not going to be abandoned, and we are not going to stop up on providing these services. We have declared our intention to carry on with our work.

Under the plan that was proposed by Vice President Joe Biden, student debt would be forgiven for four different groups of borrowers:

Those who owe more than they initially took out; those who have been in repayment already for decades; students who attend schools with a low financial value; and those who are eligible for loan forgiveness under an existing program but have not yet implemented the program.

SOURCE: CNBC

SEE ALSO:

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Donald Trump Withdraws from the ’60 Minutes’ Election Interview.

The Rupee Versus The US Dollar is Still Mainly Constant.

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