Trump made the comments during an interview with Fox Business Network on Monday, saying that he was “very worried” about what was happening in the economy. He pointed out that while it was not technically a recession yet, he had seen warning signs of what could be ahead.
The Collapse in Americans’ Real WagesThe former president singled out the collapse in Americans' real wages, a historically depressed labor force participation rate, and the Democrat push for the Green New Deal that he said would crush economic growth.
Trump's remarks came several days before the Bureau of Economic Analysis (BEA) released data showing that real U.S. GDP fell by an annualized 0.9 percent in the second quarter after contracting 1.6 percent in the first quarter.
The Current US Economy Is Not in a RecessionThe current U.S. economy is not in a recession, according to the NBER’s Business Cycle Dating Committee. The committee has not declared that a recession began in December 2007 or ended in November 2009, which means those dates cannot be used as starting and ending points for measuring downturns.
Vance Ginn, Chief Economist at the Texas Public Policy Foundation, told The Epoch Times' sister media NTD in an interview that, while officially it's NBER that calls recessions, the two-quarter rule is "usually how it's done by a rule of thumb."
"I think this is definitely recession that we're in now from these bad policies," Ginn added, blaming a series of "progressive policies" coming out of the White House and the Democrat-controlled House.
Stagflationary Winds BlowingIn his remarks, Trump also took aimed at President Joe Biden's handling of the economy, blaming him for soaring inflation.
"Biden created the worst inflation in 47 years. We’re at 9.1 percent, but the actual number is much, much higher than that," Trump said.
The US Economy Is Slowing DownTrump’s comments came amid a flurry of reports that the U.S. economy is slowing down. Earlier this week, the Federal Reserve cut its growth forecast for 2019, citing concerns about global trade tensions and rising interest rates as well as slower-than-expected labor market gains.
Trump also said that persistently high inflation combined with an economic slowdown has put the country "on the verge of a devastating" spell of stagflation, which is a combination of accelerating prices and slowing economic growth.
Inflation is "going higher and higher all the time," Trump said, adding that it's "costing families nearly $6,000 a year, bigger than any tax increase ever proposed other than the tax increase that they want to propose right now."
Trump said he thinks the Fed should be focused on the “real economy,” and that it should focus more on unemployment.
Under Biden, inflation has climbed steadily, soaring 9.1 percent year-over-year in June 2022, a figure not seen in more than 40 years.
'War on American Energy'Soaring energy prices have been one of the key contributing factors to inflation, accounting for around half of the headline inflation figure, according to the Bureau of Labor Statistics.
In his criticism of Biden's policies, Trump singled out what he called "Biden's war on American energy" and blamed it for pushing up gasoline prices.
Since taking office, Biden has taken a number of executive actions targeting the oil industry, including rescinding the Keystone XL pipeline permit, halting new oil and gas drilling leases on federal lands and waters, and ending fossil fuel subsidies by some agencies.
The price of gasoline is around double what it was when Biden took office, with the president blaming various factors, including a lack of refining capacity, the war in Ukraine, and corporate greed.
In his speech, Trump said this amounted to "begging" other countries to pump more oil instead of trying to ramp up domestic production.
"We have more liquid gold under our feet than any other country in the world. We are a nation that is consumed by the radical left’s Green New Deal, yet everyone knows that the Green New Deal will lead to our destruction."
"Just two years ago, we were energy-independent. We were even energy-dominant. The United States is now a beggar for energy."