Townhall posted an article today about some of the economic indicators that show that the American economy is rapidly recovering from the self-inflicted recession.
The article reports:
Breaking news: The US economy is roaring! Over the last few months, we have witnessed the sharpest economic snapback in US history. While many are still out of work, the future looks increasingly promising for those seeking employment. One would think that we were still mired in the deepest throes of April’s COVID-19 crisis if you take heed of the media’s narrative in recent weeks. It is clear the Democrats and Joe Biden are making the pandemic their closing argument for the 2020 election. But why? The economy is a losing argument for the Left.
The article cites some of the economic indicators that signal a strong recovery:
The commodity market is a clear window into the cost of goods and the level of demand that exists. As the Coronavirus shut down economies all over the world, global goods demand collapsed. Most notably was the oil market, as energy fuels the economy as a whole. Supply was steady, but a massive collapse in activity that forms demand left producers with a supply glut. The supply/demand gap was so large that oil futures (commodities trade primarily in the futures market) actually went negative, a historic event.
Just 7 months later the market has not only stabilized, but also has rebounded significantly. Oil, itself, is up over 100% from levels seen this Spring. This is a sound indicator of the resumption of robust economic activity. We are now escaping from economic contraction and are closing in on expansion. As consumers travel more and demand comes back for finished goods, the oil market will continue to flourish. This is one of many reasons why the Third Quarter GDP measure, to be released at the end of October only days before the election, will show the most significant rise in US history. The commodities market isn’t limited to oil. There are other very useful economic gauges within the basic goods market.
One of the most important, in terms of assessing global activity, is copper. Copper is a basic material used throughout manufacturing. The copper market collapsed this Spring along with all other raw goods during the crisis. At its low, copper was trading down roughly 35%. As activity has roared back to life, copper has been on an absolute tear. As of this writing, copper is up over 50% above its COVID lows, and is, in fact, higher than the market was trading pre-COVID. That’s a very promising signal emanating from the commodity market.
Please follow the link above to read the entire article. There is a large body of indicators showing that the economy is on the path to full recovery. The majority of states still closed down are blue states, and the leaders of those states will have to answer to the voters. Meanwhile, the economic policies of the Trump administration are working their magic.