What’s ahead for the U.S. economy in 2019? Genesis10 CEO Harley Lippman addressed the question in a recent interview on the i24News show, Spin Room.
Host Ami Kaufman asked whether the economy will be President Trump’s ‘Achilles heel’ if there is a downturn in the stock market and in the broader economy, Lippman said that “If (the economy) tumbles, he may not even run for re-election. Historically, the impact of the economy has a huge bearing on the ability of a president to be re-elected.”
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He added that presidents often “ get too much credit for the market’s success and too much blame when it goes down.”
Kaufman also asked Lippman to comment on the potential impact of tariffs and whether these trade measures will come back to haunt the President.
“No one wins in a trade war,” Lippman said “Trump is about to take a huge gamble. He’s literally lecturing to the Chinese that if they don’t have a deal by March 1, he’s going to increase tariffs. He’s mentioned everything to about 25% or higher. Right now, it hovers around 10% and it’s only a fraction of the Chinese goods that are taxed. But if (he raises tariffs to 25%) obviously the Chinese will retaliate and it’ll be extremely bad for everyone.”
Delving further into the nascent trade war and the possibility that the U.S. comes out on top, Lippman added, “If Trump doesn’t make an agreement with China, who may need an agreement more than the United States – given that their economy is slowing – I believe the stock market will crash,” adding that if President Trump can finalize an agreement “he’ll be a hero and we’ll all be better off. The economy will improve not just in the United States but around the world.”
The Spin Room with Ami Kaufman provides in-depth interviews and debates on hot button issues driving the week’s political agenda.