How will Trump's Possible Impeachment Affect the Economy?

Recently, a phone call between the President of Ukraine and the President of the United States became public. This phone call has sparked a conversation on whether or not President Trump is fit to continue to be president because of possible illegal activity. If the rumors around there being a possible breach of presidency and the president becomes impeached, how do you believe this will affect the economy? Under Trump some could argue that we have flourished in our economy so will his possible departure destroy everything the economy is or will it have a lesser effect?

https://www.washingtonpost.com/politics/staring-down-impeachment-trump-sees-himself-as-a-victim-of-historic-proportions/2019/09/28/815fbbea-e14c-11e9-b199-f638bf2c340f_story.html

The Super Wealthy Are Preparing For A Potential Recession by 2020

With the trade war and the stock market decreasing by the day, a recession may come soon than expected. This is causing fear within the affluent community. The super wealthy are embracing themselves for a potential recession in 2020, by making financial moves. Yun Li mentioned some of the super rich adjusting their investing portfolios in order to prepare for the recession. She said "45% are already adjusting their portfolios, including shifting to bonds and real estate, while 42% are increasing their cash reserves." The trade war may have great impact on both the U.S and China's economy. If the rich are preparing for an economy decline, then I advise the public to start planning on doing the same thing. If there's a recession next year, that would be the best time to start investing into the market. 

https://www.cnbc.com/2019/09/24/a-majority-of-ultra-wealthy-expect-a-recession-and-are-hunkering-down.html

Income inequality in America is the highest it’s been since Census Bureau started tracking it, data shows

According to the U.S. Census Bureau, income inequality has risen significantly in recent history. Income inequality in the United States has increased to “its highest level since the Census Bureau started tracking it, more than five decades ago.” Even in a prolonged period of economic growth and expansion, the United States has seen dramatic spikes in the rate of income inequality. For example, in 2018, the Gini index (a measure for income inequality) rose to reach 0.485, and this variable has continued to increase even as the country’s unemployment and poverty rates have reached historic lows. Within the article, it argues that one potential reason for the increase in income inequality, despite the high economic performance, is the steady federal minimum wage rate which has not been adjusted in more than a decade. 

https://www.washingtonpost.com/business/2019/09/26/income-inequality-america-highest-its-been-since-census-started-tracking-it-data-show/

JUUL CEO, Kevin Burns, Steps Down

https://www.cnbc.com/2019/09/25/juul-ceo-kevin-burns-to-step-down-replaced-by-former-altria-exec-kc-crosthwaite.html


Over the past several months JUUL has been under constant scrutiny from the FDA and public eye. There have been nearly 1000 vaping related illnesses and 9 death, although hardly any of the illnesses can be linked to JUUL, the company is still the face of the vaping industry. In the heat of the battle against vaping, the JUUL CEO has decided to step down. On top of this several states have put a temporary ban on vaping products. JUUL officials estimate that they will lose 80% of their revenue if flavored pods are banned. A CEO stepping down and a potential 80% hit to revenue is a large concern for the private investors for JUUL. Do you think investors will start looking to the tobacco industry in the midst of this vaping controversy (will tobacco stocks soon rise)?

U.S. Stocks Edge Higher; Greenback Declines: Markets Wrap

This article addresses the concern consumer spending in the U.S economy has slowed down and that happening because this could cause the whole economy to go downhill very quickly. Other sources also address this concern due to the all of the things going on with the trade war and the fluctuations in oil prices. Yet this article does add a positive spin on the whole thing for the US because investment in the U.S is still growing more than other countries. Also, the fourth quarter tends to be the busiest in consumer spending so the consumer could put all the concerns to bed with a strong end to the year. With all that being said, how do you see the next couple of months panning out in regards to consumer spending and investment in the U.S?

Link to Article: https://www.bloomberg.com/news/articles/2019-09-26/asia-stocks-set-for-mixed-start-treasuries-rise-markets-wrap?srnd=premium

Slowing U.S. Consumer Spending

Consumer Confidence

Following a sharp increase in consumer spending in the second quarter, it has decelerated. Consumer spending surged at a 4.6% annualized rate in the second quarter, the fastest pace in 4-1/2 years. Succeeding this, only a 0.1% increase in consumer spending took place in August. This suggests that consumption, the American economy's main driver of growth, is slowing. With consumer confidence having the largest drop in nine months, consumer spending may continue to decelerate. As the trade war with China has endured, high consumer spending (as a result in high employment) has been able to counter some of the hit the economy has taken. If consumer spending follows projected trends of slowing down, what kind of policy can be implemented to counter such an issue?

US consumer spending slows in August, while incomes rise

U.S consumer spending barely rose in August suggesting that economic growth is the U.S. may be slowing down, but what's interesting is that income arose during August. Consumer spending makes up more than two-thirds of economic activity and it only increased 0.1% in August, while personal income rose 0.4%. According to the Commerce Department an "increase in outlays on recreational goods and motor vehicles was offset by a decrease in spending at restaurants and hotels." This 0.1% increase in consumer spending was no match compared to the previous ongoing growth of consumer spending in prior months to August showing that economic growth could possibly be slowing down. Another reason why consumer spending could still continue to slow down is because of the ongoing trade war with China, which is causing the price of most consumer goods that we import in the U.S. to increase. 

https://www.cnbc.com/2019/09/27/us-personal-income-and-spending---august-2019.html

India is experiencing a weakening trade market. With decreasing sales in markets like: clothing, food and automobiles, the country's economy is in danger of low economic growth. This trend could also lead to job loss as the demand of goods and services can effect the job market in the long run. With a recent history of excessive lending, profits and returns were notably low. If things are to continue in this route, the economy may experience losses in the future.

India Economy Trade