Please don’t tell me that talk of “recession” is just Democrats and the “liberal media” hoping for an economic downturn to fuel their own political fortunes. Republican U.S. Senate candidate Scyller Borglum warns in her Wooden Nickel Plan announcement that financial “disaster” is coming:
Borglum believes the Wooden Nickel Plan is just one way to help mitigate the projected financial disaster making its way into the news cycle. She believes South Dakotans want to hold congress accountable and send someone to Washington who will work hard to address these real problems. Someone who will not be bought by special interest groups, but will truly listen and work for the people [Scyller Borglum for Senate, press release, 2019.08.22].
Hmm… maybe Borglum’s name for her budget-referendum plan deliberately harkens to the Depression, during which wooden nickels became popular as something like today’s Chamber Bucks.
Other bigger capitalists than Borglum see a downturn coming. They are investing in where the soon-to-be-whacked 99% will spend their remaining nickels—the dollar stores:
More investors are watching the shares of discount retailers like Dollar General Corp and Dollar Tree Inc , which perform better during economic downturns, in the hopes of gauging changes in consumer behavior, though higher tariffs may erode the companies’ ability to act as economic bellwethers.
Fund managers and analysts say that they are looking for signs of a so-called “trade-down trade”, in which consumers forgo shopping at higher-end department stores or supermarkets in favor of the more limited selection but lower prices at deep discounters. Between December 2008 and December 2011, for instance, shares of Dollar Tree soared nearly 200% as consumers pinched pennies during the Great Recession, while the benchmark S&P 500 gained just 39% over the same time.
For the year to date, shares of Dollar Tree are up 7.3% as it integrates its purchase of former competitor Family Dollar, while shares of Dollar General are up 28.4%. Both companies are scheduled to report earnings Aug. 29 [David Randall, “Investors Look at Dollar Stores as U.S. Recession Fears Increase,” Reuters via KELO Radio, 2019.08.23].
As investors and a Republican Senate candidate warn us that financial trouble looms, Borglum will have to reconcile how she can talk about the “common sense” of the White House occupant who himself has greatly increased the chances of a recession.
Yup. Walmart recently reported a good quarter and a good prospects in the next. That’s an indication that people may be willing to spend, but only on cheap items or low prices. That’s not an indicator of a thriving economy.
We’ve noticed significant price increases over the last year. Example: up to last year deals on paper towels for over 50 square feet for a dollar were common. Now you see those deals at 37 square feet per dollar. That’s not the normal price. That’s the deal price. That’s a 33 percent price increase.
Young Ms. Borglum, who is very pretty, is a liberal pretending to be a conservative. But she is right about a recession coming. I blame Hillary and Trump.
Facing financial hardships is not a liberal verse conservative matter. It’s a realistic matter. One that our country has seen time and time again. Correct me if I’m wrong, but liberals aren’t the only ones who struggle financially or live pay check to pay check or get laid off. And there is nothing MORE conservative than planning for those hardships and wanting to spend within our means.
I don’ t get it! How can she say Mike isn’t trumpy enough, and then a few weeks later she insults Trump’s beautiful economy? Does Trump know she said that? I didn’t know she was so nasty.
grudz,
Hillary has not worked in the federal government as Secretary of State in over 8 years, how could she possibly be causing the upcoming recession? Unless, you are willing to concede that Hillary is really the most powerful woman in the world, in or out of office.
The poor and working poor will have the $1 stores.
The hardworking middle class will have the $2 stores.
The rich snobbery will have the $3 stores.
I agree, Ms. Borglum, it’s not liberal v. conservative, but this economic downturn is on GOP shoulders. trump is responsible, but the Senate GOP, especially Moscow Mitch, shares that responsibility. The House wants to assert Congress’ trade authority, but the Senate refuses to act.
#2, Thin, apparently is fine with how this is playing out. Maybe he’s Moscow Johnny, since he did visit Pootie with Moscow Mitch, July 4, 2018. Doesn’t Roundy talk to Thin? Does neither SD senator represent South Dakotans?
How does it feel South Dakotans, to have zero representation in the US Senate?
Ms. Borglum, if you were in the Senate, would you be insisting that the Congress assert its trade authority?
The real question for Republicans as we approach 2020 is whether they will believe Borglum to be a true Trumpster or not, versus Rounds who works to stablize the ACA insurance pool, while at the same time votes to undercut it by supporting a tax bill, which destroyed the ACA’s enforcement mechanism.
But then again, that is classic Republican, which is trying to be all things to all people. So I guess we will all have to sit back in 2020 and watch this attempt by Borglum and Rounds to see who can be more Republican or more Trumpster, or at least act like it….. at times.
Secretaries of State don’t cause recessions, either while in office or eight years after their service… but I invite Grudz to explain his theory of diplomacy-recession linkage.
The absence of diplomacy in the Trump Administration is causing a global slowdown. One could argue that having an actual Secretary of State right now could stave off a recession.
I agree that the economic well-being of this nation should not be a partisan issue. I welcome candidates to lead honest conversations about solving economic problems and helping everyone brace for—or, preferably avoid—economic downturns.
But leading that conversation also requires honestly diagnosing our problems so that we can elect better people who will help us avoid those problems. One of the problems we need to be honest about is that the people in Washington aren’t all the same. Democrats support robust investment in public goods that have led to more national debt, but Democrats are at least honest about their philosophy and intent. Republicans support spending all sorts of money the government doesn’t have, but they lie about their philosophy and intent every time they campaign. Trump and Rounds have been profoundly dishonest with us; a candidate running against Rounds, especially one in the Republican primary, has an obligation to call out that dishonesty and call Republicans back to honest campaigning and fiscal responsibility.