What caused the largest decline in U.S. GDP in 73 years?

The real economy of the United States accounts for a small proportion of GDP, while the virtual economy of the United States accounts for a large proportion of GDP! In fact, the U.S. economy has long been out of balance, and the U.S. economy has long had structural problems!

Some economic scholars even believe that the U.S. economy was in an economic crisis as early as the Clinton and Bush eras.

The Clinton administration and the Bush administration successively made clever use of war to divert public attention; by destroying the investment environment in Europe and forcing European capital to flow to the United States, they effectively concealed the structure of the U.S. economy. Sexual issues have allowed the United States to temporarily avoid the economic crisis!

Because successive U.S. governments have chosen to deal with the structural problems of the U.S. economy in an opportunistic and temporary way, rather than seeking to carry out thorough reforms to address the structural problems of the U.S. economy. Therefore, the structural problems of the U.S. economy are becoming more and more serious, and it is becoming more and more difficult for the United States to cover up the structural problems of the U.S. economy, and the old U.S. tactics are becoming less and less effective!

At this time, the house leaked and it rained all night. The global new crown epidemic broke out, and the domestic new crown epidemic in the United States was completely out of control. This unexpected situation led to the Great Depression in the global economy, and also completely exposed the structural problems of the U.S. economy that had been accumulated for many years.

The U.S. government can no longer hide the structural problems of the U.S. economy. No matter how stupid the world is, they have clearly seen the reality that the U.S. economy has been hollowed out by capital predators, so the U.S. economic crisis finally broke out. , U.S. GDP suffered its largest decline in 73 years.

The U.S. government’s failure to respond to the COVID-19 epidemic was only the trigger for the collapse of the U.S. economy. Structural problems in the U.S. economy are the root cause of the U.S. economic collapse. No matter how well the Trump administration does its job, it cannot solve the structural problems of the U.S. economy. At most, it can only delay the collapse of the U.S. economy.

To sum up, it can be seen that the root cause of the largest decline in U.S. GDP in 73 years is the long-standing economic structural problems in the United States. The reason why this time bomb has exploded now is that the Trump administration is unlucky and fateful! Second, the Trump administration is lacking in ability to handle emergencies!

By the way, a few more words, the global COVID-19 epidemic will last for a long time. Now that the economic crisis in the United States has been detonated, the U.S. economy will not recover soon.

Judging from the length of time it takes for the U.S. economy to recover from previous major economic crises in the United States, it will take at least five years for the U.S. economy to fully recover!

The Trump administration’s policy mistakes led to the largest decline in U.S. GDP in 73 years!

1. Trump is the culprit, and the ineffective prevention and control of the new crown epidemic is one of the main reasons;

2. Trump’s foreign trade policy has created the highest GDP in the United States in 73 years The second main reason for the largest decline;

Third, blindly launching the resumption of work and production plan, leading to repeated outbreaks of the new crown epidemic, is the third main reason for the largest decline in Ddp in 73 years.

According to reports from the United States, in the first quarter of 2020, the U.S. economy fell by 4.8%; in the second quarter, on an annualized basis, it fell by 32.9%. This is the first time since 1947 that the United States began to collect GDP data on a quarterly basis. The biggest drop since 73 in a single quarter!

As the COVID-19 epidemic spreads around the world, China is the first victim country. China has worked closely with the World Health Organization to give the world and the United States enough time to prevent and control the COVID-19 epidemic, and provided valuable experience. However, Trump insists on going his own way. Instead of focusing on the prevention and control of the new crown epidemic in the United States, he is busy blaming China and the world health for the new crown epidemic that originated in the Americas and Europe. organization, blaming it on former U.S. President Obama, blaming it on the U.S. Centers for Disease Control and Prevention,…

Trump denies scientific prevention and control, calls on American people not to wear masks, and he himself refuses to wear a mask.

Trump did not take the early detection of the COVID-19 epidemic seriously. It was only when American citizens were severely infected that he ordered funds to be allocated to state governments to "prevent, control and detect" the COVID-19 epidemic. As a result, states in the United States have been unable to effectively prevent, control and treat the disease.

Trump has adopted an America-first policy in foreign trade policy and started trade wars with other countries around the world, seriously damaging the U.S. economy. As the saying goes: If you kill 1,000 enemies, you will suffer 800 losses. Trump's foreign trade policy has kept the U.S. economy in a weak state. The most important engine of U.S. economic growth is the sharp contraction of domestic national consumption. According to statistics from relevant U.S. departments, in the second quarter of 2020, U.S. domestic consumer spending shrank by 34.6%, a record high! The investment of the private sector in the United States encountered "Waterloo" and skyrocketed by 49! Restaurants, hotels, and shops are closed... Aviation and shipping companies have laid off employees drastically. As of June 30, 3,600 companies in the United States have filed for bankruptcy protection, 40 million people are unemployed, and more than 17.6 million people have applied for unemployment benefits.

Trump’s repeal of Obama’s health care bill has resulted in 13 million poor people being unable to receive health insurance subsidies; the United States is also the only country among developed countries in the world that does not have full health insurance coverage.

The unilateralism and protectionism implemented by Trump in the United States have directly impacted the global trade international market, disrupted the normal global production and trade value relationships, caused global investment to decline, slowed down economic growth, and also A direct impact on the US GDP plan.

Trump's "opening up the United States and resuming work and production" not only failed to reach the peak of economic growth, but also directly led to the widespread spread and repeated outbreaks of the new coronavirus, creating an uncontrollable situation. Most state governments in the United States have serious policy conflicts with the Trump federal government. Most state governments have intermittently rejected the Trump administration's "resumption of work and production" plan out of concern for the health and life safety of their citizens.

So far, the U.S. has a total of 4.72 million confirmed cases of COVID-19 and a total of 152,000 deaths. The number of cases in the U.S. is still increasing by more than 50,000 every day. U.S. medical experts predict that if prevention and control is not strengthened, the number of COVID-19 cases in the U.S. will decline. The number of confirmed cases and deaths from the virus will double.

According to the analysis of foreign experts, the United States has always regarded China as its main competitor and has ruthlessly suppressed and militarily suppressed China economically and technologically. If China were to buy and sell US$700 billion in US bonds, the US economy would be severely affected. There will be devastating consequences.

What is the reason? No need to say more, let me repeat a few words:

Epidemic, epidemic, ineffective epidemic;

Protests, protests, protests;

Unemployment, unemployment, unemployment Constantly;

Withdrawing from the group, quitting the group, quitting the group endlessly;

Provoking, provoking, provoking constantly;

Campaign, campaign, campaign to death! One is the epidemic!

The United States has led the world in the epidemic for a long time, but the epidemic first lowered consumption! How can the United States, a consumer-oriented country, endure this? Secondly, it restricts import and export, and thirdly, it suppresses manufacturing! In addition, it will also have a huge impact on other industries! The second is the big parade!

People are not thinking about economic development, but taking to the streets to demonstrate! Factories are shut down and stores are closed!

The beating, smashing, looting and burning during the parade also destroyed social productivity! All reasons, in the final analysis, are the "correct leadership" of the Trump administration!

Trump's vacillation between saving lives and saving the market, his incompetent response, weak leadership, and misdirection led to the collapse of the United States in the second quarter. The economy plummeted!

The question is, what caused this situation in the United States?

Two reasons.

The main reason: Of course it’s the epidemic

Since March, the epidemic in the United States has begun to surge. After 5 months, it is still not under control. The number of infected people has exceeded 4.86 million, and the number of deaths has also increased. It reached 159,000. During the epidemic, the U.S. economy has been affected as follows.

1. Consumption is greatly reduced.

Under normal circumstances, Americans' "consumption" contributes a lot to the economy. However, due to the epidemic, many people in the United States are isolated at home or choose not to go out as much as possible. This has caused the consumption in the United States to shrink by 34.6% in the second quarter, reaching a record high. This has a great impact on the US economy.

2. The unemployment rate has increased significantly.

Since the beginning of the epidemic, American companies and merchants have encountered huge challenges. Business has plummeted, and bankrupt companies have mushroomed. As a result, the unemployment rate in the United States has greatly increased. At the peak of unemployment, the number of people reached about 40 million. Later, under Trump's urging, many companies started operations one after another, and the unemployment rate dropped a bit. Even so, there are still 30 million people unemployed, accounting for 10 of the total number of people.

The increase in the number of unemployed people shows that consumption will be further affected.

3. Import and export trade has dropped significantly, and various investments have dropped significantly.

The global economy has suffered a substantial setback due to the epidemic, and due to various regulations and controls, the import and export trade of the United States has also been greatly affected.

At the same time, in the face of the recession, various investments in the United States have decreased significantly.

In view of this, the huge decline in the total volume of the "consumption, investment, and export" troika has led to a sharp decline in the overall U.S. economy in the second quarter.

So, is it just the epidemic that has caused the economic downturn? Not just. The "economic structure" and "unilateralism and trade protectionism" of the United States are another important factor

Although the recession of the U.S. economy obviously broke out during this period, this is only a huge factor , and there are deep-rooted reasons.

1. The negative effects brought about by the economic structure of the United States.

After the United States entered the new century, its focus was mainly on high-end manufacturing, high technology, finance, etc., which resulted in the hollowing out of the manufacturing industry.

The mid- to low-end manufacturing industry has been transferred out, but with it, the employment rate has been affected. After all, high-tech, finance, and high-end manufacturing require a large number of high-end talents.

As a result, the unemployment of the lower class people in the United States is destined to increase, which has become a huge social problem.

At the same time, because the United States lacks many manufacturing companies, while GDP is affected, risks are also increasing. For example, in this epidemic, the powerful United States cannot supply masks, ventilators, etc. This sounds like a joke.

Moreover, with the rise of high-tech and high-end manufacturing in countries such as China, the United States is a little panicked, because this is their lifeblood.

The "irrational" economic structure has begun to bite back the U.S. economy.

2. The unilateralism and trade protectionism implemented by the United States actually have a great impact on the U.S. economy.

It is true that Trump’s policies have helped some small and medium-sized enterprises in the United States, as well as the people at the bottom.

However, unilateralism is a double-edged sword. You can restrict the entry of other countries' products, you can increase tariffs, you can break various rules, and you can also "America First" everywhere. But at the same time, the influence of the United States is declining, and other countries will also make choices that are beneficial to their own countries.

In this way, the United States seems to have protected itself in the short term, but in fact, it has lost more support and recognition.

No one is an island. If you only think about yourself, you will definitely learn more lessons and receive countermeasures from more countries.

Now, the United States’ influence on the European Union has begun to decrease, and its influence on the Asia-Pacific has also begun to decrease. These will have a long-term impact on the U.S. economy.

Overall, the epidemic is the most important factor affecting the U.S. economic downturn. However, we must not ignore the impact of the U.S. economic structure and unilateralism on the United States.

In a word, the United States has passed the peak and started to decline. Next, the United States should consider how to slow down its downward trajectory, or stop where it is and make the most reasonable adjustments.

It is the epidemic, and it is also the policies and measures that ignore the epidemic. It is also the inevitable result of blindly returning to school and work, which leads to the epidemic getting out of control.

The annualized GDP of the United States in the second quarter was 19.41 trillion, a decrease of 2.15 trillion from the first quarter, or about 10. Among them, personal consumption accounts for about 13 trillion (or 67 of the total GDP). Personal consumption fell by 1.5 trillion compared with the first quarter. Among them, the service industry dropped by 43.5%.

Private investment fell by 50%. Imports and exports are in free fall, with exports -64 and imports -53. Not only has the trade deficit not decreased, but it has increased by 50.7 billion compared with Q1 (494.3 billion), and its contribution to GDP is negative.

The troika of consumption, investment, import and export has all stalled, so it would be strange if GDP does not fall. But if you think about it carefully, this result is not surprising. Thanks to the COVID-19 epidemic, all kinds of production - especially the service industry that consumes a lot of labor - have been completely suspended. The spread of the epidemic around the world has led to a severe foreign trade situation, and the economic prospects are worrying. Naturally, there is no motivation for investment, and several bad companies have Taking the news together, can GDP not decrease?

I am too big to give an answer at once. I only know that they did not control the coronavirus well and the economy cannot operate normally

What are the epidemic factors

What caused the largest decline in U.S. GDP in 73 years?

Hello everyone! I am your favorite Xizhilang Observer! Let’s talk about this hot topic today!

The epidemic caused me trouble. Everyone knows that the United States is a typical "consumption-oriented" country. This epidemic has caused Hollywood, NBA, etc. to almost close their doors. People have lost their jobs and have no ability to consume. The economic stagnation of American society has led to a sharp decline in GDP in the short term, which is reasonable.

Everyone knows that the death of Floyd, a black American boy, plunged the United States into chaos for a time. "Looting, smashing, and burning" caused most businesses in the United States to lose their money. Let's not discuss whether the death of "Floyd" is a problem with the American system or racial discrimination. But for business, Floyd's death is a heavy blow!

Pursuing unilateralism Since Trump came to power, the United States has either been "withdrawing" or on the road of "withdrawing" from the group, which means that it has taken "unilateralism" to the dark side. , and there is a "confrontational economy" everywhere. This is actually reversing the direction of history! Our ancients said: "Those who achieve great things must conform to the trend of the times, and those who go against the trend of the times will eventually be abandoned by the times." The current situation in the United States just reflects the correctness of this sentence...

I am Xizhilang Observation, a self-media person with an attitude, welcomes everyone to discuss this hot topic...