Trump Is Creating An Economic Hard Landing

[Economy 52,879]

https://www.google.ca/amp/s/www.yahoo.com/amphtml/finance/news/risks-economic-hard-landing-rising-us-165403902.html

 

While the occasional cyclical recession is normal after a long expansion phase in the economic cycle, Trump is creating conditions that could cause the next recession to become more severe than it needs to be

 

Big business tax cuts and to a lesser degree more modest middle class tax cuts are going to heat up an economy that is close to full capacity creating a labor shortage

 

When an economy reaches full capacity and there isn't labor available, the economy can still grow, but companies must increase efficiency and invest in new technology to increase productivity per worker.

 

If companies cannot increase productivity per worker fast enough to keep up with demand when the economy reaches full capacity, you get high inflation, competition for limited resources, and distortions in economy creating imbalances that lead to bubbles

 

High inflationairy pressures will also force interest rates to rise sharply which could later cause a credit crunch both for businesses that need credit to expand needed productivity during labor shortage as well as lending for consumers such as the housing market

[Diamond Monster 299]

When the 2008 recession hit, my family lost our home, so i'm totally not here for that concept.

[shoful 13,304]

1 hour ago, Diamond Monster said:

When the 2008 recession hit, my family lost our home, so i'm totally not here for that concept.

Thats completely different. That was the Great Recession. Created by the anullnent of Glass-Steagull in the late 90s where banks were selling fake loans to home owners but in reality nobody had he money for the homes. Recessions are cyclical though just like expansion. Every couple of years you go through these phases. Many recessions have happened in our parents and grandparents lifetimes and theyre just natural. The one in 2008 was ENORMOUS and created by something that caused the Great Depression. So you don’t have to worry about that. 

[Economy 52,879]

16 hours ago, shoful said:

Thats completely different. That was the Great Recession. Created by the anullnent of Glass-Steagull in the late 90s where banks were selling fake loans to home owners but in reality nobody had he money for the homes. Recessions are cyclical though just like expansion. Every couple of years you go through these phases. Many recessions have happened in our parents and grandparents lifetimes and theyre just natural. The one in 2008 was ENORMOUS and created by something that caused the Great Depression. So you don’t have to worry about that. 

This. Canada had a "technical recession" in 2015 after oil crashed but the unemployment rate barely changed and after 2 quarters (6 months) it resumed growth 

 

So sometimes a recession is a mild pullback after a long cyclical expansion or something specific that caused GDP to shrink a little

 

But what Trump is doing could cause a harder knockout just cuz of timing. He's adding juice to the economy right when it's in the middle of a delicate moment of rising rates during full capacity