Press Release
For Immediate Release: 
January 31, 2020
Contact Info: 
Mariel Saez 202-225-3130
The Majority Leader’s Office is now sending a weekly e-mail highlighting economic statistics and news that Members can use as they discuss the state of the economy and how House Democrats are working to spur economic growth, support job creation, and raise wages for the people.

QUOTE OF THE WEEK: “… The [rising deficit] problem has been exacerbated by the large and irresponsible tax cuts Republicans pushed through in 2017. The cuts were sold as a way to trigger a sustained surge in economic growth; instead, GDP bumped up only briefly, held back in part by the tariffs President Trump slapped on a broad array of imports… Slashing programs such as Medicaid and food stamps to help pay for the GOP tax cuts would be redistributing wealth in the worst way — from the impoverished to the well-to-do...” [The Editorial Board, The LA Times,  1/29/20]

STAT OF THE WEEK:  The deficit will top $1 trillion annually for the next decade. “The Congressional Budget Office predicted on Tuesday that the United States deficit will top $1 trillion annually over the next 10 years, ultimately reaching $1.7 trillion in 2030... Mr. Trump promised to pay off the national debt as president, but in three years in office, he has instead added to it with big tax cuts and increased federal spending. Mr. Trump and Republican lawmakers have claimed the tax cuts will pay for themselves through increased economic growth, which would ostensibly produce higher tax revenues… But…federal revenues declined. The latest C.B.O. forecast shows no indication that officials there expect rapid growth will return any time soon, as Mr. Trump and his team have projected. [The New York Times, 1/28/20]

ECONOMIC NEWS YOU MAY HAVE MISSED
  • GDP growth slowed considerably. “The U.S. economy grew 2.3 percent in 2019, a solid pace that was boosted by strong consumer and government spending but fell short of President Trump’s promise to deliver at least 3 percent growth. Last year’s growth was the weakest since Trump took office, according to Commerce Department data released Thursday, as Trump’s escalating trade war with China triggered a major pullback in business spending and investment. From April through December, business investment contracted as corporate leaders preferred to sit on cash or return it to investors instead of using it to build factories or buy equipment. [Washington Post, 1/30/20]
  • Business investment remains low. “New orders for key U.S.-made capital goods dropped by the most in eight months in December and shipments were weak, suggesting business investment contracted further in the fourth quarter and remained a drag on economic growth… Weak business investment and the resulting slump in manufacturing have been on the radar of Fed officials who have blamed trade tensions, especially the White House’s 18-month trade war with China, and an uncertain global economic growth outlook for the malaise.” [Reuters, 1/28/20]
  • There was an uptick in farm bankruptcies in 2019. “While well below historical highs, Chapter 12 family farm bankruptcies in 2019 increased by nearly 20% from the previous year, according to recently released data from the U.S. Courts. Compared with figures from over the last decade, the 20% increase trails only 2010, the year following the Great Recession, when Chapter 12 bankruptcies rose 33%.” [Farm Bureau 1/29/20]