Donald Trump has claimed that the US economy was likely to go into a “very massive recession.” His calculations are now questioned by economic experts.
The Republican frontrunner said in an interview on Saturday that the real unemployment rate in the United States was 20 percent. However, he said the number was “statistically devised” to be five percent to “make politicians — and in particular presidents — look good.”
According to Harm Bandholz, Trump’s claims are not valid. The chief economist at UniCredit Research in New York said that, contrary to Trump’s claims, the unemployment rate was not 20 percent. He also said the country was not heading for any recession, minor or major.
Rajeev Dhawan said nobody could predict a stock market crash. “I don’t see any of the reasons for a recession going forward unless there is a huge problem with the market or there is some catastrophic world event which is beyond the scope of economics,” the Huffington Post quoted the director of the Economic Forecasting Center at Georgia State University as saying.
When asked about a tip on how to proceed in the present state of the US economy, Trump said the country was “sitting on a big bubble.” “You have a situation where you have an inflated stock market,” Trumps said. “It started to deflate, but then it went back up again.”
The GOP presidential candidate said it was a sign of “things to come.”
Joel Naroff believes only a complete financial meltdown would cause a recession. “We can get by with Europe growing minimally,” the chief economist at Naroff Economic Advisors in Pennsylvania said. “We can get by with China growing modestly because the rest of the U.S. is still solid enough that we can handle weakness in the rest of the world.”
Economics professor Sung Won Sohn said the possibility of American heading toward a recession is less than 10 percent. However, he does not blame the US economy for that. He also thinks a recession in the country may only be triggered by an economic crisis in Europe and China.