Hoyer Highlights News on the Economy

House Majority Leader Steny H. Hoyer (D-MD) sends weekly economic reports to House members as concern with the economy grows. He says it’s news that members can use as they discuss the state of the economy and how House Democrats are working to spur economic growth, support job creation, and raise wages for the people.

• Business investment remains low. “New orders for key US-made capital goods dropped by the most in eight months in December and shipments were weak, suggesting business investment contracted further in the fourth quarter and remained a drag on economic growth … Weak business investment and the resulting slump in manufacturing have been on the radar of Fed officials who have blamed trade tensions, especially the White House’s 18-month trade war with China, and an uncertain global economic growth outlook for the malaise.” [Reuters, 1/28/20]
• There was an uptick in farm bankruptcies in 2019. “While well below historical highs, Chapter 12 family farm bankruptcies in 2019 increased by nearly 20% from the previous year, according to recently released data from the U.S. Courts. Compared with figures from over the last decade, the 20% increase trails only 2010, the year following the Great Recession, when Chapter 12 bankruptcies rose 33%.” [Farm Bureau 1/29/20]
• The deficit will top $1 trillion annually for the next decade. “The Congressional Budget Office predicted on Tuesday that the United States deficit will top $1 trillion annually over the next 10 years, ultimately reaching $1.7 trillion in 2030 … Mr. Trump promised to pay off the national debt as president, but in three years in office, he has instead added to it with big tax cuts and increased federal spending. Mr. Trump and Republican lawmakers have claimed the tax cuts will pay for themselves through increased economic growth, which would ostensibly produce higher tax revenues … But … federal revenues declined. The latest CBO forecast shows no indication that officials there expect rapid growth will return any time soon, as Mr. Trump and his team have projected. [The New York Times, 1/28/20]

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For more information about House Majority Leader Steny H. Hoyer, visit his Leader member page.