This week in Trumponomics: Mission unaccomplished

President Trump is getting his way, as many states begin to ease or entirely lift stay-at-home rules meant to stop the spread of the coronavirus. But a specter of doom hangs over the reopenings, as consumers remain fearful and public health experts predict new outbreaks that could force new waves of business closures.

“America is getting its life back!” Trump tweeted on May 14. In Wisconsin, revelers streamed into bars as the Republican-controlled Supreme Court invalidated the Democratic governor’s stay-home order. New Jersey said its famed beaches will open this summer, with restrictions. Florida entered “phase two” of its reopening, allowing gatherings of up to 50. Even hotspot states such as New York and Louisiana are beginning to open areas with low prevalence of the virus.

But it’s a long leap from gradual reopenings to a robust economic recovery that Trump can tout as Election Day approaches in November. Shutdowns have already done massive damage to the U.S. economy, with retail sales and industrial production both plunging by the biggest margin on record this week. Another 3 million Americans filed for unemployment insurance, bringing total unemployment claims to 37 million during the last two months. Total employment is back to 2011 levels and will probably regress further.

While some cooped-up Americans might be grateful for the chance to get out, public health experts are alarmed. Rick Bright, the government vaccine expert now demoted for criticizing Trump’s slow response to the virus, told Congress the United States faces “the darkest winter in modern history” if it doesn’t mount a comprehensive national assault on the virus. Trump keeps saying a vaccine is coming by the end of the year, but Bright said we could have a vaccine by 2021 at best, and then only if everything goes perfectly. He added that it will probably take much longer than a year.

Trump is setting expectations for a return to normal much faster than it’s likely to happen. In 2003, President George W. Bush declared “mission accomplished” in the U.S. invasion of Iraq. The war lasted another eight years, killing thousands more. Trump is probably making the same mistake, substituting wishful thinking for measured judgment. For that reason, this week’s Trump-o-meter reads FAILING, the second-lowest score.

Source: Yahoo Finance
Source: Yahoo Finance

Trump continues to dismiss one strategy that could actually help the economy recover faster: A muscular federal program to dramatically scale up testing for the coronavirus, along with an army of contact tracers to map the virus everywhere it goes and identify people newly at risk before they infect others. Many economists and public health experts, both Democrat and Republican, have said this is the best way to build confidence that people can move around safely.