Donald Trump praised growing Walmart profits, which is precisely what happened just before the arrival of the Great Recession.
Walmart announces great numbers. No impact from Tariffs (which are contributing $Billions to our Treasury). Inflation low (do you hear that Powell?)!
— Donald J. Trump (@realDonaldTrump) November 14, 2019
As Slate wrote in a 2008 article explaining Walmart’s rising profits as the economy tanked, “Wal-Mart’s cheapo reputation is serving it well. For much of this decade, Trading Up has been the governing retail paradigm. In an age of easy credit and expanding consumer choices, masses of consumers took to shopping for staples at cheap outlets while indulging their passions at boutiques. Underwear from Wal-Mart, but chocolates from Godiva. Mac and cheese in bulk at Costco, but Starbucks for caffeine jolts. But that mentality is so 2005. As the latte era grinds down and credit tightens, Americans have stopped trading up and started trading down. That plays right into the hands of Wal-Mart, whose brand identity is all about saving people money.”
When the economy tightens, and people need to save money, they shop at Walmart more. What Trump views as a clear blue sky is actually a storm cloud looming above his head.
Trump’s claims about the tariffs are absolute nonsense. The president is sticking to the false belief that China is paying the tariffs. Walmart has raised prices due to the tariffs, but due to their overwhelming size, they have been able to put the squeeze on suppliers to keep the price increases lower.
Trump’s tariffs have caused a manufacturing recession and a farming depression.
The Walmart profits are a warning sign on the road ahead that this economy is going off the rails.
href=”https://www.facebook.com/groups/1944900445770755/”>Rachel Maddow and MSNBC group.