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Trump is prioritising the economy over the vulnerable – Al Jazeera English

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It is one thing to provide hope during a crisis – it is quite another to address people’s fears with empty promises. Unfortunately, US President Trump is engaging too much in the latter and not enough in the former as the coronavirus threatens to upend the United States healthcare system.

The latest development in the president’s critically flawed response to the pandemic is the false optimism that he has created by stating that the country “could open for business” by Easter.

What the US needs, right now, is leadership. Politicians who are true leaders in times of crisis provide well-conceived plans that prioritise the most vulnerable, while also issuing clear and calming statements when discussing matters with the public.

Is this what we receive from the White House? No, far from it – when we need clarity, we get confusion, and where facts and research should provide guidance, we are told that the economy takes precedence over everything else, people included.

So, what exactly are the facts?

On this front, many of us are in the dark. To know the actual extent of the coronavirus pandemic requires testing folks who may have it. That way, we would know who is sick and where they are.

Yet, the US lags significantly behind most other countries that have been administering tests, such as South Korea.

It is unclear what the administration’s efforts have been in this regard, for instance, whether the government turned down kits from the World Health Organization (WHO), or simply was slow to get the FDA to approve an alternative.

The result, however, is that the reported number of coronavirus cases is most likely an underestimate.

Yes, we can point fingers all we want, but we cannot change the past. We can plan with whatever information we do have.

We know from existing research that approximately 15 percent of the people who are infected will require hospitalisation. For every 1,000 people who have the virus, this means that about 150 people will need to be admitted to hospital.

We also know that people above the age of 65, individuals with underlying health conditions, such as heart disease or respiratory illnesses, as well as folks with weakened immune systems, are likely to fall seriously ill if they contract coronavirus.

It is also clear that the vast majority of those who catch the virus survive – studies place the death rate at 2 percent, perhaps even lower.

Research also shows that quarantine works. That much, at least according to the United Nations, has been made clear by analysing how China has successfully brought the spread of the virus under control.

Two clear action plans result from this information – first, the government needs to act swiftly and dedicate emergency resources for healthcare. Second, politicians should clearly tell people to stay at home.

Yet, where such steps need to be taken, Trump either drags his feet or misleads.

Consider the government’s slow action with respect to the Defense Production Act of 1950 which gives the president powers to compel businesses to follow orders deemed necessary for national defence. The president signed two decrees authorising the use of this Act which would make private companies prioritise carrying out government orders. However, he took days to issue any specific orders under the Act – only doing so on Friday to compel General Motors to produce ventilators. 

And why did it take so long? According to some reporting, Trump was worried about complaints from big business on how using the act would interfere with the market and private property.

There are others who would also prioritise the economy over everything else – the Lieutenant Governor of Texas, Daniel Patrick. In expressing fear over “economic collapse” and that we are “losing the whole country”, this week, he followed Trump in stating that perhaps in a few weeks people should get back to work.

Yet, it seems that the Lieutenant Governor may not be the best person to consult at times like these. He is a small businessperson – not a doctor or healthcare professional – so let’s listen to them before we open businesses and go back to living as usual.

More importantly, we are receiving mixed messages from across the country as a whole. Individual states, such as California, New York and, more recently, Minnesota, have ordered non-essential workers to stay at home. There is no expiry date set with these orders.

It seems that Trump and Patrick think that they should expire at a certain time, while state governments have a different opinion.

More importantly, what will people do? If the president and some of his supporters think it is ok to resume our typical daily routines in three weeks’ time, why not make it two? Hell, why stay home at all?

With cases rising by the thousands daily across the country, and as something like 30 percent of infected people show no symptoms according to the research, then this seed of doubt concerning the need to stay home could grow into a monster.

In effect, it could render null all attempts to contain the virus, granting the contagion fertile ground to continue to spread globally.

So, will the US be “open for business” by Easter? Is this possible? I cannot say one way or another. But really, opening or closing the US is not the issue. What is necessary is for our leaders to act cautiously, with the information that is available, to create well-thought-out plans that keep the most vulnerable among us safe.

For the sake our friends, families and also for all the other people we do not know who have heart disease, AIDS, cancer or who are our elders, the president needs to act as if their safety is the reason for his actions.

This is what a leader would do – the question is, will Trump?

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.

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Economy

Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

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TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

Canada’s inflation rate hits 2% target, reaches lowest level in more than three years

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OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.

The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.

Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.

The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.

“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.

Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.

“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.

The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.

The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.

A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.

Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.

Its key lending rate currently stands at 4.25 per cent.

CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.

The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.

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Economy

Federal money and sales taxes help pump up New Brunswick budget surplus

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FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.

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