Khanoisseur 🐶🤦🏻‍♂️🌎 @Khanoisseur Nonpartisan fact-checks + analysis of news (+ 🐶 pics). *Turn notifications on* (Podcast coming). Stuff for @Google @Twitter @Uber @Facebook @Tesla Aug. 22, 2019 1 min read

People think trade war with China will cause a recession but trade with China is only 3% of GDP (US exports to China will decline by barely 0.1% of GDP); however consumer spending is 70% of GDP - so the key is to keep people consuming (phones, cars, houses) or else GDP collapses.

2. Relentless talk of a recession by various pundits will spook people into curbing their spending, prompting the public to save up for a rainy day (those scarred by the last recession are more likely to save up even more) which will trigger the recession.

3. As I have been saying 👇…we are now at a point where reckless talk of a recession will become a self-fulfilling prophecy…  https://www.cnbc.com/2019/08/21/former-omb-director-halt-in-us-consumer-spending-would-bring-recession.html 


You can follow @Khanoisseur.



Bookmark

____
Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.

Enjoy Threader? Become member.