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c. tODAY
How to Keep the Economy Growing
Article by Thomas J. Donohue, Chief Executive Officer, U.S. Chamber of Commerce
Depending on whom you talk to, the economy is the impact of tariffs on business performance. The
either soaring or sinking. Which side is right? uncertainty stemming from deteriorating U.S.-China
Well, both ... relations is driving away business investment and
inching us closer to a recession. The solution? A détente
The consumer side of the economy remains strong. in the tit-for-tat trade war. President Trump and
The unemployment rate is at a generation low, and President Xi Jinping should lift the tariffs hurting both
take-home pay is steadily rising. In fact, we’re in economies and restart trade negotiations immediately.
the third straight year of wage growth. With greater
job security and more income, people are spending Second, approve the U.S.-Mexico-Canada Agreement
money. Retail sales beat expectations in June. (USCMA) as soon as possible. Updating North
American trade relations for the 21st century will grow
On the business side, however, the picture is less bright. the digital economy, protect intellectual property, and
Companies are taking stock of the uncertainty at home strengthen American agriculture. Most important, it
and abroad – most notably the escalating trade war with will protect 12 million U.S. jobs and boost business
China – and sitting on their cash. This has resulted in confidence at a critical time for our economy.
the first decline in business investment in three years.
The manufacturing sector has been in a downturn since Third, revitalize our nation’s infrastructure.
December, and farm incomes have plummeted. Wild Enactment of an infrastructure bill – such as the
swings in the stock market are amplifying concerns. bipartisan surface transportation proposal in the
And inverted yield curves in the bond market have some Senate – would support the economy in the short
warning that a recession is imminent. term and contribute to long-term growth. Moreover,
it would signal that Washington is capable of taking
Whether our economy expands or contracts depends necessary steps to tackle tough issues and support
largely on what our leaders do next. As Congress economic growth, which would go a long way in
reconvenes today and Washington officially gets down bolstering business optimism.
to business for the rest of the year, we are urging
leaders on both sides of Pennsylvania Avenue to focus Following through on these priorities will help restore
on three priorities. business certainty. If our leaders in Washington do
their jobs and make smart choices, businesses can keep
First, de-escalate trade tensions with China. U.S. doing what they do best: invest, grow, hire, and keep the
executives are overwhelmingly concerned with economy working for all Americans.■
17 AmCham South China
How to Keep the Economy Growing
Article by Thomas J. Donohue, Chief Executive Officer, U.S. Chamber of Commerce
Depending on whom you talk to, the economy is the impact of tariffs on business performance. The
either soaring or sinking. Which side is right? uncertainty stemming from deteriorating U.S.-China
Well, both ... relations is driving away business investment and
inching us closer to a recession. The solution? A détente
The consumer side of the economy remains strong. in the tit-for-tat trade war. President Trump and
The unemployment rate is at a generation low, and President Xi Jinping should lift the tariffs hurting both
take-home pay is steadily rising. In fact, we’re in economies and restart trade negotiations immediately.
the third straight year of wage growth. With greater
job security and more income, people are spending Second, approve the U.S.-Mexico-Canada Agreement
money. Retail sales beat expectations in June. (USCMA) as soon as possible. Updating North
American trade relations for the 21st century will grow
On the business side, however, the picture is less bright. the digital economy, protect intellectual property, and
Companies are taking stock of the uncertainty at home strengthen American agriculture. Most important, it
and abroad – most notably the escalating trade war with will protect 12 million U.S. jobs and boost business
China – and sitting on their cash. This has resulted in confidence at a critical time for our economy.
the first decline in business investment in three years.
The manufacturing sector has been in a downturn since Third, revitalize our nation’s infrastructure.
December, and farm incomes have plummeted. Wild Enactment of an infrastructure bill – such as the
swings in the stock market are amplifying concerns. bipartisan surface transportation proposal in the
And inverted yield curves in the bond market have some Senate – would support the economy in the short
warning that a recession is imminent. term and contribute to long-term growth. Moreover,
it would signal that Washington is capable of taking
Whether our economy expands or contracts depends necessary steps to tackle tough issues and support
largely on what our leaders do next. As Congress economic growth, which would go a long way in
reconvenes today and Washington officially gets down bolstering business optimism.
to business for the rest of the year, we are urging
leaders on both sides of Pennsylvania Avenue to focus Following through on these priorities will help restore
on three priorities. business certainty. If our leaders in Washington do
their jobs and make smart choices, businesses can keep
First, de-escalate trade tensions with China. U.S. doing what they do best: invest, grow, hire, and keep the
executives are overwhelmingly concerned with economy working for all Americans.■
17 AmCham South China
