Trump’s speech reveals serious risks for US, global economy
Illustration: Luo Xuan/GT
After the coronavirus quickly unfold throughout his nation, US President Donald Trump on Wednesday night time delivered a uncommon nationwide tackle to reassure the US public and calm skittish monetary markets. However the roughly 10-minute speech was something however reassuring and calming.
What it revealed was that the US authorities continues to downplay the general public well being disaster and its financial fallout and wouldn’t change its present bungled response. Whatever the motivations behind this method, whether or not it is a deliberate transfer for political expediency throughout a heated presidential election or only a full miscalculation, it poses severe dangers for not simply the US financial system however the international financial system as a complete.
Within the televised speech, Trump largely resorted to previous ways – downplaying the dangers, boasting concerning the US financial system, blaming international nations for issues within the US and shutting borders. He declared that the danger of catching the virus was “very, very low” for the overwhelming majority of Individuals, asserted that US banks and monetary establishments had been “extremely sturdy,” labelled the coronavirus “a international virus” began in China, and criticized the EU for failing to limit journey from China just like the US did.
Most of those claims are grossly deceptive, if not flat-out improper. It is true that the primary confirmed case of coronavirus was reported in China however the authentic supply of the virus remains to be not scientifically clear. As Trump famous, the US restricted journey to and from China very early on. Nevertheless, the variety of confirmed circumstances and deaths are nonetheless rising within the US and huge gatherings are being canceled. It is truthful to say the danger remains to be excessive. The US inventory market is in bear territory and companies exercise is being disrupted, so the financial system just isn’t as sturdy as Trump claimed.
COPYRIGHT_BP: Published on https://bingepost.com/trumps-speech-reveals-serious-risks-for-us-global-economy/61326/ by Cecilia Jones on 2020-03-14T01:52:47.000Z
Nonetheless primarily based on these flawed assessments, the US president introduced some measures, together with suspending “all journey from Europe” to the US for a month, “discussing” restrictions on “something” coming from Europe together with commerce and cargo, waiving “all co-payments for coronavirus remedy,” potential suspension of payroll taxes and offering $50 billion in further loans for small companies.
Possibly all these steps are essential, however they don’t tackle the core situation that began all this. What’s noticeably lacking was a concrete plan to include the outbreak inside the US. As many have famous, a China-style mass quarantine is unattainable within the US as a result of it is simply not the “American approach” and, extra importantly, it might hinder financial exercise and that will not be superb for Trump’s reelection marketing campaign.
This could be true. In spite of everything, restrictive measures might have an enormous financial value within the quick time period. Nevertheless, with out containing the virus, the basis trigger, the associated fee could possibly be a lot larger and lasting. Certainly that won’t assist Trump’s reelection, the US financial system or the worldwide financial system.
The writer is a reporter with the World Instances. bizopinion@globaltimes.com.cn
Newspaper headline: Trump’s speech reveals severe dangers for US financial system
