Chamber hears economic analysis | Local company

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Reasons for concern could include current arguments regarding barriers to foreign trade, such as tariffs.

“It would be something of a concern if it were linked to consumer spending, if it makes products more expensive. It’s something economists have in mind, ”he said.

Yaskewich said another indicator of a faltering economy would be lower growth in other countries, especially Western Europe and China. Currently, Germany, the economic powerhouse of Western Europe, is seeing its economic pace starting to slow.

Another indicator of consumer confidence is business fixed investment, he said.

“It’s a term for buildings, machinery, tools, equipment, things that are tangible that businesses invest in when the outlook is good, it indicates optimism,” he said. “If there is pessimism about a future slowdown, business owners could not only cut back on these investments, but they could also start cutting in ways that weaken employment rates. “

Yaskewich also pointed out that the deficit is expected to reach $ 1.1 trillion in 2020, down from $ 666 billion in 2017.

“If we measure this as a share of our overall economy, it would be a 5% share of our overall income, a 5% share of our GDP. For a strong economy with less than 4% unemployment, that’s actually a pretty big deficit, ”he said. “If you think about where the federal government gets most of its money, the majority comes from federal income tax or payroll taxes. So if we have a strong economy but a large deficit, one wonders what will happen when the economy starts to weaken and unemployment increases. “


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