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Trump, Biden spar over economy, workers in Labour Day blitz – CP24 Toronto's Breaking News

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Noreen Nasir, Alexandra Jaffe And Kathleen Ronayne, The Associated Press


Published Monday, September 7, 2020 2:27PM EDT


Last Updated Monday, September 7, 2020 6:38PM EDT

HARRISBURG, Pa. – Democratic presidential nominee Joe Biden and President Donald Trump spent Monday diminishing each other’s credentials on the economy and understanding of the American worker as the presidential campaign entered its final, post-labour Day stretch.

While workers live by an “American code,” Biden said Trump “lives by a code of lies, greed and selfishness” as he met with labour leaders in Harrisburg, Pennsylvania, a key swing state. Trump, meanwhile, tried to put the halting economic recovery under the best light in a White House press conference where he said Biden and his running mate, Sen. Kamala Harris, would “destroy this country and would destroy this economy.”

Labor Day typically marks the unofficial start to the fall campaign season as candidates accelerate their activity for the final sprint to Election Day. Both campaigns reflected that urgency Monday, as Harris and Vice-President Mike Pence each campaigned in Wisconsin, a state Trump narrowly won in 2016. The events played out against the background of the pandemic, which has upended campaigning and pushed Biden and Harris in particular to conduct much of the traditional election activity online.

While the health of the American economy and status of workers were dominant Labor Day themes, both campaigns also focused on recent protests that have roiled Wisconsin and the rest of the nation after police shot Jacob Blake, a Black man, in Kenosha last month.

Harris, the first Black woman on a major party presidential ticket, met privately with Blake’s family at the Milwaukee airport after arriving in the state, where she spoke with Blake by phone from his hospital bed. Harris told Blake she was proud of him and individually spoke to each of his family members, in person and on the phone, urging them to take care of their physical and mental health, Blake’s lawyers said in a statement.

Biden met with Blake’s family during a visit to Wisconsin last week. Trump did not during a trip of his own last week, instead meeting with law enforcement and business owners whose property had been damaged during protests. Nor did Pence, who touched on the protests during a speech in La Crosse, where he toured an energy facility.

“We will have law and order in every city in this country for every American of every race and creed,” Pence said.

Out on the trail, signs of the pandemic were evident. While Pence didn’t speak with a mask on, workers from the power company he toured did as they stood behind him. Harris was careful not to stray far from blue “X” marks taped on the floor to encourage social distancing as she toured an International Brotherhood of Electrical Workers training facility. While supporters gathered outside the candidates’ stops, they had minimal interaction with members of the public beyond the people invited to their events.

Harris also met with Black business owners in Milwaukee, while Biden spoke to a small group of labour leaders in a backyard in Lancaster, where he criticized Trump for “refusing to deal with the problems that affect ordinary people” and called for strengthening unions. His campaign announced endorsements from the Laborers’ International Union of North America, the International Union of Elevator Constructors and the National Federation of Federal Employees, collectively representing hundreds of thousands of union workers nationwide.

Later, at an AFL-CIO virtual town hall with union President Richard Trumka, Biden called Trump’s alleged remarks about fallen soldiers being “losers” and “suckers” un-American and said Trump would never understand why Americans serve. Trump has denied the remarks.

“He’ll never understand you, he’ll never understand us, he’ll never understand our cops, our firefighters, because he’s not made of the same stuff,” Biden said.

Earlier in the day, Trump painted Biden as a leader incapable of handling the coronavirus and reviving the economy and pledged his own “undying loyalty to the American worker.”

He boasted of adding more than 10 million jobs since May, without mentioning that’s only about half of the jobs lost since the pandemic began. He also said the unemployment rate “plunged” to 8.4%. It was a sharper decline than many economists expected from the prior month, but economists broadly view the latest report as evidence that further economic improvement will be sluggish.

He alleged Biden and Democrats would “immediately collapse the economy.”

The day marked Harris’ first solo foray onto the campaign trail for in-person events since she became Biden’s running mate nearly a month ago. Biden himself has stepped up his campaigning over the past week, travelling to Pittsburgh and Kenosha and holding two news conferences. Aides say to expect both Biden and Harris to increase their campaigning for the remaining weeks.

Polls consistently show the economy as an issue at the top of voters’ minds.

A strong economy that was Trump’s biggest asset for reelection has now become a potential liability, brought down by the coronavirus. Biden says Trump has had an inadequate response to the pandemic, resulting in more loss of life and jobs than necessary.

The U.S. economy has been steadily rebounding from its epic collapse in the spring as many businesses have reopened and rehired some laid-off employees. Yet the recovery is far from complete. Only about half the 22 million jobs that vanished in the pandemic have been recovered.

Economic inequalities also appear to have widened, with lower-income and minority workers suffering disproportionately while affluent Americans have lost fewer jobs and even benefited from rising stock and home prices.

Ronayne reported from Sacramento, California, and Nasir reported from Milwaukee. Associated Press writer Amy Forliti contributed from Minneapolis.

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31.4 per cent spring slide for a U.S. economy likely to shrink in 2020 – CTV News

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WASHINGTON —
The U.S. economy plunged at an unprecedented rate this spring and even with a record rebound expected in the just-ended third quarter, the U.S. economy will likely shrink this year, the first time that has happened since the Great Recession.

The gross domestic product, the economy’s total output of goods and services, fell at a rate of 31.4% in the April-June quarter, only slightly changed from the 31.7% drop estimated one month ago, the Commerce Department reported Wednesday.

The government’s last look at the second quarter showed a decline that was more than three times larger than the fall of 10% in the first quarter of 1958 when Dwight Eisenhower was president, which had been the largest decline in U.S. history.

Economists believe the economy will expand at an annual rate of 30% in the current quarter as businesses have re-opened and millions of people have gone back to work. That would shatter the old record for a quarterly GDP increase, a 16.7% surge in the first quarter of 1950 when Harry Truman was president.

The government will not release its July-September GDP report until Oct. 29, just five days before the presidential election.

While President Donald Trump is counting on an economic rebound to convince voters to give him a second term, economists said any such bounce back this year is a longshot.

Economists are forecasting that growth will slow significantly in the final three months of this year to a rate of around 4% and the U.S. could actually topple back into a recession if Congress fails to pass another stimulus measure or if there is a resurgence of COVID-19. There are upticks in infections occurring right now in some regions of the country, including New York.

“There are a lot of potential pitfalls out there,” said Gus Faucher, chief economist at PNC Financial Services. “We are still dealing with a number of significant reductions because of the pandemic.”

In 2020, economists expect GDP to fall by around 4% , which would mark the first annual decline in GDP since a drop of 2.5% in 2009 during the recession triggered by the 2008 financial crisis.

“With economic momentum cooling, fiscal stimulus expiring, flu season approaching and election uncertainty rising, the main question is how strong the labour market will be going into the fourth quarter,” said Gregory Daco, chief U.S. economist at Oxford Economics.

“With the prospect of additinal fiscal aid dwindling, consumers, businesses and local governments will have to fend for themselves in the coming months,” Daco said.

The Trump administration is forecasting solid growth in coming quarters that will restore all of the output lost to the pandemic. Yet most economists believe it could take some time for all the lost output to be restored and they don’t rule out a return to shrinking GDP if no further government support is forthcoming.

So far this year, the economy fell at a 5% rate in the first quarter, signalling an end to a nearly 11-year-long economic expansion, the longest in U.S. history. That drop was followed by the second quarter decline of 31.4%, which was initially estimated two months ago as a drop of 32.9%, and then revised to a decline of 31.7% last month.

The slight upward revision in this report reflected less of a plunge in consumer spending than had been estimated. It was still a record fall at a rate of 33.2%, but last month projections were for a decline of 34.1%. This improvement was offset somewhat by downward revisions to exports and to business investment.

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Economic rebound slows as Statistics Canada says economy grew 3.0 per cent in July – The Battlefords News-Optimist

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OTTAWA — The pace of Canada’s economic rebound from the COVID-19 pandemic slowed in July, and maybe even more in August, Statistics Canada says, suggesting the country is in what experts described as a long, choppy path to recovery.

Statistics Canada says real gross domestic product grew by three per cent in July, matching the agency’s preliminary estimate and economists’ expectations, but below the 6.5 per cent recorded in June, and May’s 4.8 per cent bump.

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Gains have been linked to the loosening of restrictions that forced non-essential businesses to close in March and April, but they haven’t been enough to haul the economy back to pre-pandemic levels.

Overall, Statistics Canada said the economy in July was about six per cent below its pre-pandemic level in February, even if some sectors like retail and real estate have recouped their losses and then some.

Looking at August, the statistics agency said growth likely continued albeit at a slower pace as it provided a preliminary estimate of a one per cent climb in GDP for the month.

“That’s suggesting the steam in the recovery is going away and so, this for me is suggesting that we might be moving from a quick rebound phase of the recovery to a more challenging phase,” said TD senior economist Sri Thanabalasingam.

The August figure will be finalized late next month.

The path of the recovery over the coming months will be tied to the path the pandemic takes, which could lead to rollbacks of reopening measures.

Rising case counts have prompted such calls as the country heads into what several public health officials say is a second wave of the novel coronavirus pandemic.

The increase in COVID-19 infections, coupled with the August figure suggests the sharp rebound in the third quarter won’t carry over to the final three months of the year, said CIBC chief economist Avery Shenfeld.

“Easing up on COVID-19 restraints fed into solid Canadian GDP gains in July and August, but the concerns now are whether we will pay for some of that greater openness,” Shenfeld wrote in a note.

The Conference Board of Canada said health measures and testing should prevent another full shutdown of economic activity earlier this year, but warned of localized lockdowns as one hurdle.

The pandemic is going to flatten the recovery curve for the next year at least, said Pedro Antunes, the organization’s chief economist.

“We’re going to be creating fewer jobs on a monthly basis going forward, we’re going to see the increases in economic activity or GDP being much more subdued in terms of their increases overall,” he said.

The Conference Board’s outlook expected the unemployment rate won’t fall back to its pre-pandemic levels until 2025.

Thanabalasingam said it could be early 2022 before before the economy gets back to where it was prior to COVID-19.

July’s GDP report from Statistics Canada noted that all 20 industrial sectors it tracks posted increases in July, with agriculture, utilities, finance, insurance and real estate sectors recouping losses suffered since the start the pandemic.

Manufacturing grew 5.9 per cent in July, following a 15.1 per cent expansion in June as more operations ramped up production, but still remained about six per cent below where it was pre-pandemic.

The hard-hit accommodations and food services sector posted a third consecutive month of double-digit increases, jumping 20.1 per cent in July.

Thanabalasingam said despite the bump, the amount of activity in the industry was about two-thirds of where it was in February, as more people went shopping and case numbers dropped.

“There’s still a very, very long way to go, even though they’re posting these strong growth rates,” he said.

“My worry is that as caseloads continue to rise and some of these provinces think about rolling back some of those reopening measures . . . then is this as good as it could get for these sectors?”

The health care and social assistance sector rose by 3.7 per cent in July, as more doctors, dentists and diagnostic laboratories reopened in line with the rollback of restrictions.

This report by The Canadian Press was first published Sept. 30, 2020.

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U.S. economy plunges 31.4 per cent in spring but big rebound expected – CTV News

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WASHINGTON —
The U.S. economy plunged at an unprecedented rate this spring and even with a record rebound expected in the just-ended third quarter, the U.S. economy will likely shrink this year, the first time that has happened since the Great Recession.

The gross domestic product, the economy’s total output of goods and services, fell at a rate of 31.4% in the April-June quarter, only slightly changed from the 31.7% drop estimated one month ago, the Commerce Department reported Wednesday.

The government’s last look at the second quarter showed a decline that was more than three times larger than the fall of 10% in the first quarter of 1958 when Dwight Eisenhower was president, which had been the largest decline in U.S. history.

Economists believe the economy will expand at an annual rate of 30% in the current quarter as businesses have re-opened and millions of people have gone back to work. That would shatter the old record for a quarterly GDP increase, a 16.7% surge in the first quarter of 1950 when Harry Truman was president.

The government will not release its July-September GDP report until Oct. 29, just five days before the presidential election.

While President Donald Trump is counting on an economic rebound to convince voters to give him a second term, economists said any such bounce back this year is a longshot.

Economists are forecasting that growth will slow significantly in the final three months of this year to a rate of around 4% and the U.S. could actually topple back into a recession if Congress fails to pass another stimulus measure or if there is a resurgence of COVID-19. There are upticks in infections occurring right now in some regions of the country, including New York.

“There are a lot of potential pitfalls out there,” said Gus Faucher, chief economist at PNC Financial Services. “We are still dealing with a number of significant reductions because of the pandemic.”

In 2020, economists expect GDP to fall by around 4% , which would mark the first annual decline in GDP since a drop of 2.5% in 2009 during the recession triggered by the 2008 financial crisis.

“With economic momentum cooling, fiscal stimulus expiring, flu season approaching and election uncertainty rising, the main question is how strong the labour market will be going into the fourth quarter,” said Gregory Daco, chief U.S. economist at Oxford Economics.

“With the prospect of additinal fiscal aid dwindling, consumers, businesses and local governments will have to fend for themselves in the coming months,” Daco said.

The Trump administration is forecasting solid growth in coming quarters that will restore all of the output lost to the pandemic. Yet most economists believe it could take some time for all the lost output to be restored and they don’t rule out a return to shrinking GDP if no further government support is forthcoming.

So far this year, the economy fell at a 5% rate in the first quarter, signalling an end to a nearly 11-year-long economic expansion, the longest in U.S. history. That drop was followed by the second quarter decline of 31.4%, which was initially estimated two months ago as a drop of 32.9%, and then revised to a decline of 31.7% last month.

The slight upward revision in this report reflected less of a plunge in consumer spending than had been estimated. It was still a record fall at a rate of 33.2%, but last month projections were for a decline of 34.1%. This improvement was offset somewhat by downward revisions to exports and to business investment.

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