Congressman Cohen Clarifies Misleading GDP Figures Touted by Trump White House

Statement

Congressman Steve Cohen (TN-09) today clarified misleading claims by the Trump White House about the high Gross Domestic Product (GDP) rate in the third quarter, explaining that the deceptive figure being touted days before the election follows the second quarter GDP's historic low. Expert opinion predicts real GDP for all of 2020 will be down 4 percent, the worst showing since 1946.

Congressman Cohen made the following statement:

"You know what they say about lies and statistics. Trump's third quarter looks high because of the second quarter's historic 31.4 percent drop, which was three times worse than the previous post-World War II decline of 10 percent in 1958. The economy would need to have made a stunning 53.4 percent increase in the third quarter to get even with pre-pandemic growth levels, and it came far short of that. Don't be misled.

"In fact, the dramatic decline in GDP this year is predicted to strip an estimated $1 trillion in economic output compared to pre-pandemic forecasts, or about $8,000 per household. Don't let the Trump snake oil salesmen spin you. Today's announcement is more evidence of a weakened economy suffering under incompetent management. Trump's failing efforts to deal with the ongoing health crisis are likely to weigh down growth well into 2021."

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