Trump claims victory over COVID-19, economic crisis

Trump claims victory over COVID-19, economic crisis

US president says major progress made against racial inequity; Biden says remarks despicable

Saturday, June 06, 2020

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WASHINGTON, DC (AP) — President Donald Trump yesterday effectively claimed victory over the economic crisis and COVID-19, as well as major progress against racial inequity, heartily embracing an unexpectedly good jobs report in hopes of convincing a discouraged nation he deserves another four years in office.

In lengthy White House remarks amid sweeping social unrest, a rising virus death toll and Depression-level unemployment, the Republican president suggested that even George Floyd, the black man who died last week when a white police officer knelt for minutes on his neck, would be pleased with the latest economic news.

“Hopefully George is looking down right now and saying this is a great thing that's happening for our country,” Trump said. “This is a great day for him. It's a great day for everybody.”

Putting words in the dead man's mouth drew quick criticism, including from likely presidential foe Joe Biden, who said it was “despicable”.

A few blocks away, city workers painted a huge “Black Lives Matter” sign on 16th Street leading to the White House.

On the economy, Trump said an economic rebound was the answer to racial inequality, calling it “the greatest thing that can happen for race relations.”

Trump was quick to seize the positive jobs report at a time when his political standing is at one of the weakest points of his presidency less than five months before the general election. Just two in 10 voters believe the country is headed in the right direction, a Monmouth University poll found earlier in the week.

Few things matter more to Trump's political future than the state of the US economy, which was all but shut down by state governments this spring to prevent greater spread of the deadly coronavirus. Defying health experts, the president has aggressively encouraged states to reopen and has assailed state leaders by name who resist.

At the same time, he's taken an uneven approach to explosive racial tensions in the wake of Floyd's death. As he has in recent days, Trump yesterday offered a sympathetic message to Floyd in one breath and lashed out at protests in his name the next.

Local governments “have to dominate the streets”, Trump said. “You can't let what's happening happen.”

The president spoke in the Rose Garden after the Labour Department said that US employers added 2.5 million workers to their payrolls last month. Economists had been expecting them instead to slash eight million jobs in continuing fallout from the pandemic.

The jobless rate, at 13.3 per cent, is still on par with what the nation witnessed during the Great Depression. And for the second-straight month, the Labour Department acknowledged making errors in counting the unemployed during the virus outbreak, saying the real figure is worse than the numbers indicate.

Still, after weeks of dire predictions by economists that unemployment in May could hit 20 per cent or more, the news was seen as evidence that the collapse may have bottomed out in April.

Yesterday's report made for some tricky reaction gymnastics for Trump's Democratic election opponent, Biden, who sought to contrast the improving figures with the fact that millions of Americans are still out of work. The high jobless rate, he said, is due to the Trump Administration mishandling the response to the pandemic.

“Let's be clear about something: The depth of this jobs crisis is not attributable to an act of God but to a failure of a president,” Biden declared in a Delaware speech shortly after Trump spoke.

The presumptive Democratic nominee said Trump was patting himself on the back as America faces some of its sternest challenges ever.

“It's time for him to step out of his own bunker, take a look around at the consequences,” Biden said.

It's unclear how many jobs that were lost as a result of the pandemic are permanently gone or whether the reopenings in states will create a second surge of COVID-19 deaths. In addition, the report from mid-May doesn't reflect the effect that protests across the nation have had on business.

Many economists digging into the jobs report saw a struggle ahead after the burst of hiring last month.

The report reflected the benefits of nearly $3 trillion in government aid instead of an organic return to normal. Only one of every nine jobs lost because of the pandemic has been recovered, and the specter of corporate bankruptcies hangs over the recovery.

Much of the growth came from 2.7 million workers who were temporarily laid-off going back to their jobs. This likely reflected $510 billion in forgivable loans from the Payroll Protection Programme (PPP) to nearly 4.5 million employers — an administration initiative that helped push the unemployment rate down to 13.3 per cent from 14.7 per cent in April. African American unemployment rose slightly to 16.8 per cent.

As the money from the PPP programme runs out, there could be another round of layoffs, warned Sung Won Sohn, an economist at Loyola Marymount University.

“There will be continuing residual fear and uncertainty,” Sohn said.

Trump defended his handling of the pandemic, contending that more than one million Americans would have died had he not acted. More than 108,000 people are confirmed to have lost their lives due to the coronavirus, according to a count from Johns Hopkins University.

Now, though, Trump said states and cities should be lifting remaining restrictions. “I don't know why they continue to lock down,” he said of some jurisdictions that have maintained closings.

Former South Carolina Governor and Representative Mark Sanford, a Republican who briefly mounted a primary challenge to Trump last year, dismissed any employment gain due to federal deficit spending.

“What we have right now is federal policy aimed solely at boosting numbers that obviously would help in a reelection effort,” Sanford said in an interview. “We're literally buying jobs.”

But there was little sign of concern among Trump and his Republican allies in Washington.

“This shows that what we've been doing is right,” Trump said of the jobs numbers. He added: “Today is probably the greatest comeback in American history.”

He pitched himself as key to a “rocket ship” rebound that would fail only if he doesn't win reelection.

“I'm telling you next year, unless something happens or the wrong people get in here, this will turn around,” Trump said.


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