Commentary: Small Businesses Urge Federal and State Governments to Reopen America ASAP

Due in large part to government edicts, religious, social, and political gatherings, have been cancelled or drastically altered to meet government requirements. Schools and colleges have closed so there will be no proms or graduations to attend this spring. Restaurant dining rooms are closed, as are community centers, fitness centers, salons, barbershops, theaters, retail stores, and malls. Theme parks, beaches, and even some public parks are closed. Air travel and the use of public transportation has declined precipitously. Traffic on the roads is eerily light, and parking lots are nearly empty.

Of the businesses that have remained open, many have reduced their operating hours. While one can reasonably expect that stay-at-home orders will reduce Chinese coronavirus cases, it remains to be seen what the human and economic toll of these orders will be; but we do know that they are devastating to small businesses and their employees.

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Michigan Lawmaker Asks Governor to Allow Some Businesses to Reopen If They Adhere to Social Distancing Guidelines

State Rep. Triston Cole (R-Mancelona) asked Gov. Gretchen Whitmer to allow some nonessential businesses to reopen if they follow social distancing guidelines.

Cole sent a letter to Whitmer on Monday, claiming her stay-at-home order hurt small businesses, including those in the construction and landscaping industry. Both of those industries, said Cole, allowed workers to work safely while staying apart from each other.

“I certainly understand where our governor is coming from. Public safety must always be the main priority,” Cole said in a statement. “However, keeping people employed and businesses operating must also be a priority.”

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Leahy and Carmichael Discuss Coronavirus Induced Economic Trends and Speculate the Recovery Timeline and Numbers

Monday morning on The Tennessee Star Report with Michael Patrick Leahy – broadcast live from Music Row on Nashville’s Talk Radio 98.3 and 1510 WLAC weekdays from 5:00 a.m. to 8:00 a.m. – Leahy was joined on the newsmakers line by the all-star panelist Crom Carmichael.

During the second hour, Leahy and Carmichael discussed the recent announcement made by Dr. Fauci where he referenced models and how they expect to see a sharp decline on the V graph by end of the second quarter and then a gradual increase by third quarters end.

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Michigan Unemployment Claims Reach Record High

The economic fallout caused by the coronavirus pandemic includes massive unemployment caused by government-mandated shutdowns of businesses throughout Michigan.

The U.S. Department of Labor (DOL) reported 129,298 Michigan employees filed unemployment claims last week. Government figures indicate that number has increased from nearly 5,338 people filing unemployment claims reported March 14, a difference of more than 123,960.

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3.3 Million File Unemployment Claims in U.S. – a Record Number

Nearly 3.3 million Americans filed unemployment claims last week, a record number as businesses were forced to shut down to help slow the spread of the novel coronavirus.

The U.S. Department of Labor reported Thursday that 3.28 million claims were filed in the week that ended March 21. That marked an increase of more than 3 million claims over the week prior, when 282,000 claims were filed.

The previous high in a single week, according to the department, was in October 1982, when about 695,000 claims were filed. The nearly 3.3 million claims filed last week is nearly five times the prior record.

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Think Tank Calls for Ohio Government to Take Common-Sense Measures to Fight Coronavirus and Aid in Economic Recovery

A new policy brief lays out actions that Ohio policymakers can immediately implement so Ohio can fight and yet recover from the coronavirus pandemic, and it doesn’t involve unilaterally moving primaries or shutting down businesses.

The Buckeye Institute released the brief on Monday.

The brief, Policy Solutions for the Pandemic: How Ohio Can Fight the Impact of Coronavirus, is available here.

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Judson Phillips Commentary: Lessons in the Time of the Chinese Virus

The first quarter of the year is not yet over, and we have gone from an almost record stock market to a nation that is all but economically shut down.  Some alarmists warn that over two million Americans will die from the Chinese Virus.  Others say this will be less problematic than the flu.

Regardless, as of now, the country is mostly shutdown and the economy is in free fall.  Economists from Goldman Sachs predict that the economy will shrink by an unprecedented twenty four percent in the second quarter.  The good news is the economy is expected to grow by twelve percent and ten percent in the third and fourth quarters.

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New American Populist Founder Jeff Webb Proposes the ‘Temporary Income Replacement Act’ as a Bold Solution to Help Bolster American Families and the Economy

Live from Nashville, Tennessee Friday morning on The Tennessee Star Report with Michael Patrick Leahy – broadcast on Nashville’s Talk Radio 98.3 and 1510 WLAC weekdays from 5:00 a.m. to 8:00 a.m. Jeff Webb, founder, and chairman of The New American Populist (TNAP) joined Leahy on the newsmakers line.

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Commentary: China’s Post-Virus Plan to Destroy America’s Economy

The virus that originated in Wuhan, China poses a double threat to America.

The first is to our health as the virus spreads through the U.S. population. The second is to our economy as more businesses, schools, and events shut down to slow the spread of the contagion.

We must not underestimate the economic threat because the Chinese Communist Party is using the pandemic to achieve its goal of supplanting the United States as the world’s leading economic, diplomatic, and military power.

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Tennessee Applies for Economic Injury Disaster Loan Assistance

Tennessee has submitted a request for Economic Injury Disaster Loan assistance to the U.S. Small Business Administration, Gov. Bill Lee announced Wednesday.

The assistance allows small businesses and nonprofit organizations negatively impacted by the coronavirus to apply for loans of up to $2 million.

“For most of my life, I’ve been a small business owner and understand the unique challenges each of you face,” Lee said in a statement. “While I am pleased with our progress on targeted relief for small businesses, we know this is just a first step from our federal partners to provide liquidity to our businesses. We are in constant dialogue with our delegation members to ensure that federal aid is responsive to our concerns and needs.”

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Commentary: After the Coronavirus Outbreak, We Don’t Need Universal Income, We Need a Rehiring Tax Credit to Get Back to Work

Congress is passing plans to provide for long-term paid sick leave and family medical leave to tens of millions of Americans, actively encouraging people to stay home, and essentially telling employers to lay off employees while brick and mortar businesses, schools and government offices are all closed, all in a bid to slow down the spread of the Chinese coronavirus.

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Commentary: The U.S. Economy Will Weather the Chinese Coronavirus

American Spirit

President Donald Trump praised the Federal Reserve for cutting the federal funds rate to a range of 0 percent to 0.25 percent, and restarting quantitative easing with $500 billion of U.S. treasuries purchases and $200 billion of mortgage purchases in response to the Chinese coronavirus global pandemic.

“It makes me very happy and I want to congratulate the Federal Reserve,” he said. “That’s a big step and I’m very happy they did it.” Trump has been hounding the Fed for years to cut interest rates to make the dollar more competitive against trading partners’ currencies including the yuan, euro and peso. Now he gets his wish.

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President Trump Praises Fed as Interest Rates Are Slashed to Near Zero

The Federal Reserve slashed interest rates to near zero on Sunday as part of a series of measures intended to combat the economic downturn caused by the coronavirus pandemic.

The central bank cut rates to 0% to 0.25%, the central bank announced in a statement. The Fed will also purchase $700 billion worth of Treasury and mortgage-backed securities through quantitative easing, a measure previously used during the Great Recession to get money flowing back into the markets, The Washington Post reported.

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Commentary: Millennials and Generation Z Voters Will Decide Our Economic Future this November

For young voters, this coming election isn’t just about strengthening our retirement accounts — though that’s been one of the highlights of the Trump era, with the stock market repeatedly setting new record highs. More importantly, the next election is about keeping this booming economy going through our prime earning years. It’s about having the opportunity to make the most of ourselves and start healthy, secure families. For us, re-electing President Trump isn’t just a good idea, it’s an economic imperative.

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Iowa Officials Laud Landmark Trade Deal Expected to Generate $200 Billion in U.S. Exports to China

Local and national government officials and agricultural advocates are expressing their respective pleasure over Wednesday’s signing of the first phase of a sweeping trade deal between China and the United States.

Among the provisions of the deal are agreements from China to import an additional $32 billion in agricultural products; $80 billion in manufactured goods; $50 billion in energy products; and $35 billion in other services.

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Commentary: The Good Economic News No One Heard About

A few weeks ago, the Census Bureau released the 2018 Income and Poverty in the United States report, but you probably didn’t see anything about it because it received scant attention in the establishment media because it reported such positive results mostly attributable to President Trump’s economic policies. Instead, what little media attention that the report received focused on a meaningless measure of income “inequality.”

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Forgotten Founder Pelatiah Webster: America’s First Economist

by Lawrence Reed   Everybody knows who America’s first president was, but can you identify the country’s first economist? If any man or woman deserves that description, it is surely the one who wrote this and so much more: I propose . . . to take off every restraint and limitation from our commerce. Let trade be as free as air. Let every man make the most of his goods in his own way and then he will be satisfied. His name was Pelatiah Webster. Largely forgotten today, he was regarded as “the American Adam Smith” after his death in 1795 at the age of 68. His wisdom, especially on trade and money matters, deserves a renewed appreciation today. Webster was born in Lebanon, Connecticut, in 1726. Twenty years later, he graduated from Yale and became a minister in Massachusetts. By 1755, however, the lure of entrepreneurial opportunities took him to the business world of Pennsylvania. He was an almost instant success as a merchant, amassing a small fortune in the process. His reputation as an authority on matters of trade, finance, and currency was unmatched by anyone in the 13 colonies on the eve of the American Revolution. The…

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White House: Trade Agreement with China Not Close

by Ken Bredemeier   White House economic adviser Larry Kudlow said Sunday resumption of trade talks between the U.S. and China “is a very big deal,” but acknowledged there is no immediate prospect for an agreement between the world’s two largest economies. “The talks will go on for quite some time,” Kudlow told the Fox News Sunday interview show. He said the countries had reached agreement on 90 percent of a new deal by early May, before talks broke down in what has turned out to be a seven-week stalemate. U.S. President Donald Trump and Chinese President Xi Jinping agreed Saturday on the sidelines of the Group of 20 economic summit in Japan to restart negotiations. Watch the latest video at foxnews.com But Kudlow assessed that “the last 10 percent could be the toughest,” with such unresolved issues as cyberattacks, Chinese demands that U.S. companies turn over proprietary technology they use, Chinese government support for its companies and the sale of U.S. technology components to the giant Chinese multinational technology giant Huawei. Trump agreed in his meeting with Xi to ease sales of some U.S.-made components to Huawei, a policy change that some of Trump’s Republican colleagues in the U.S. disagree with because…

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US-China Trade Dispute Triggering Production Exodus

by Joyce Huang   U.S. tech giant Apple has reportedly asked its major suppliers, mainly China-based manufacturers from Taiwan, to consider moving 15 to 30% of their production outside of China to avoid higher tariffs imposed on U.S.-bound exports. The production migration, which analysts say is already ongoing,will hurt the tech giant’s profit margin, but also lead to massive job losses in China. They add that such shifts have also occurred over the past year among other China-based tech suppliers and the trend will continue if the trade war between the world’s two biggest economies keeps escalating. “Over the past year, to my understanding, manufacturers in the information [technology] sector, for example, [China-based Taiwanese] suppliers of personal computers or consumer electronics have moved faster than handset makers and relocated [part of] their assembly lines outside China,” says Sean Kao, senior research manager at IDC Taiwan on worldwide hardware assembly research. Caught in the Crossfire Tech companies such as Apple are caught in the crossfire of U.S.-China trade frictions and face the threat of heavy punitive taxes on their China-made, U.S.-bound products. Earlier this month, U.S. President Trump said he would decide whether to slap Beijing with further tariffs on another…

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India Hikes Tariffs on U.S. Goods Amid Deepening Trade Friction

  India has hiked tariffs on 28 goods imported from the United States as a trade spat between the two countries intensifies. The retaliatory move came days after Washington removed New Delhi from a list of countries that have preferential access to its market. “India has put its cards on the table,” says trade expert Biswajit Dhar at Jawaharlal Nehru University in New Delhi. “The U.S. has upped the ante and it is also threatening to take further action. This required India to respond.” The trade spat has escalated ahead of a visit later this month to New Delhi by U.S. Secretary of State Mike Pompeo who has pushed India to allow American companies more access to its markets and to lower barriers. Experts fear the growing tensions could cast a shadow over a deepening India-U.S. strategic partnership that aims at countering China’s growing influence. The American goods that attract higher tariffs beginning Sunday include almonds, apples, walnuts, chickpeas and lentils, as well as some stainless steel products. New Delhi is the largest importer of U.S. almonds and the second largest buyer of apples. The total impact of the Indian tariffs is estimated to be about $240 million. Increased deferred…

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May Jobs Report: 75,000 Jobs Added, Unemployment Remains at 3.6 Percent

by Mary Margaret Olohan   The U.S. economy added 75,000 jobs in May, while the unemployment rate remained at 3.6 percent, according to Department of Labor data released Friday. Economists predicted 180,000 jobs would be added and that wage growth would rise to about 3.2%, according to The Wall Street Journal. Jobs numbers for April were 263,000 jobs added, according to the Bureau of Labor Statistics report. After a decline in April, the number of persons unemployed for less than five weeks increased by 243,000 up to 2.1 million. The May jobs report comes on the heels of April’s job report that showed the lowest unemployment numbers in 50 years. The U.S. economy added 263,000 jobs in April, while the unemployment rate fell to 3.6 percent. Economists had predicted only 190,000 jobs added and a continued unemployment rate of 3.8 percent. Jobs growth has come back strong after February when just 33,000 jobs were added. The unemployment rate has held steady between 4 percent and 3.7 percent for more than a year before the April jobs report showed it drop to 3.6 percent. Prior to April’s report, the consistent unemployment rate suggested that workers are jumping back into the workforce…

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Experts: Tariffs in the Offing for India as President Trump Wages War on ‘Unfair Trade’

by Michael Bastach   The Trump administration’s decision to rescind trade preferences with India could be a sign that more tariffs are on the horizon, experts say. U.S. trade officials announced Friday the end of special trade treatment on $6 billion worth of goods from India because the country has “not assured the United States that India will provide equitable and reasonable access to its markets.” Those Indian goods were exempted from tariffs under what’s called the Generalized System of Preferences (GSP). Special trade treatment will end Wednesday, suggesting to trade experts President Donald Trump is expanding war against the U.S. trade deficit. “This could potentially presage a new trade investigation and, possibly, tariffs,” analysts ClearView Energy Partners wrote in a report released Monday morning. ClearView analysts said the Trump administration may be weighing a Section 301 investigation, which could lead to retaliatory tariffs if trade officials find India’s trade policies hurt U.S. commerce. Trump has criticized India’s “unfair” trade practices, which he says hurts U.S. companies and workers. “As we discussed in March, the termination of India’s duty exemptions – and especially the imposition of new tariffs – could potentially draw retaliation against U.S. coal exports, a nontrivial risk for U.S. producers,”…

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China, Tariffs, Trade, Cost and Prices: An Explainer

by Rick Manning   Stock markets go up and down based upon the latest trade rumors. Predictions of price hikes make headlines, yet the inflation rate remains at the levels, 2.0 percent at last count, desired by the Federal Reserve. What is going on?  And is this even really a trade war with China at all, or is it part of something much bigger?  These are questions that should be asked but are often lost to click-bait headlines.  So, here are a few thumbnail answers that will hopefully help you understand what is going on. Question: Are President Trump’s use of tariffs against China part of a trade war? Those who try to put tariffs on goods made in China into this context are deliberately narrowing the real challenge in the economic relations between the U.S. and China. The tariffs are designed to restructure America’s trade relations with China, but when you examine the key demands from the recent attempts to create a new economic partnership with China, they are mostly focused upon protecting patents, ending forced technology transfers to the Chinese government and stopping Chinese currency manipulation which always puts U.S. goods at a competitive disadvantage with Chinese goods. Traditional trade deals…

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Commentary: The Win-Win Scenario of Further ‘Retaliation’ by China

by Robert Romano   On May 10, the South China Morning Post published a report, “Will China use its US$1.2 trillion of US debt as firepower to fight the trade war?” speculating that China might have potential leverage against the U.S. after President Donald Trump levied 25 percent tariffs on a total of now $250 billion of Chinese goods. But that’s all it is: speculation. Nothing more. China is in no danger of dumping its treasuries holdings, and even if it were, it would gain no trade advantage from doing so. Why, you ask? Because they’re a paper dragon. For starters, if you look at the $16.2 trillion public treasuries market (excluding the $5.8 trillion the U.S. government holds), China has about $1.13 trillion of that, or about 7 percent of the total. The South China Morning Post’s Karen Yeung  warns, “China could strike back by dumping its vast holdings of US government debt. Flooding the market with Treasuries would push down U.S. bond prices and cause the yields to spike. That would make it more costly for US companies and consumers to borrow, in turn depressing America’s economic growth.” So, if Beijing were to start dumping treasuries, flooding the open market, interest rates…

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