As state economists warn that the economy is slowing, Gov. Ron DeSantis believes Florida is better positioned for a recession than it was a decade ago.
Speaking at the Florida League of Cities’ annual conference on Friday, the Republican governor pointed to the state continuing to hold top-line credit ratings and receiving positive media comparisons to Northeastern states for its “fiscal plans,” and for having amassed a sizeable reserve amid a record $90.3 billion spending plan for the current fiscal year.
“I think we are much better positioned to weather an economic downturn then we were in 2008, 2009, when we really took it on the chin there,” DeSantis said in a speech his aides posted on Facebook. “I think we’ve been able to expand the base and build better economic resiliency here.”
DeSantis’ outlook was more restrained than that of White House officials, when they were asked about the national economy while making the rounds on Sunday morning news programs.
President Donald Trump’s economic advisor Larry Kudlow insisted on “Fox News Sunday” that he didn’t “see a recession at all.”
“The Trump pro-growth program, which I believe has been succeeding, lower tax rates, big rollback of regulations, energy opening, trade reform, we’re going to stay with that,” said Kudlow.
Kudlow also praised a proposal floated by U.S. Sen. Rick Scott, a Florida Republican who is close to Trump, that would return money collected from tariffs on China to Americans, in the form of tax reductions.
Meanwhile, White House trade advisor Peter Navarro on ABC’s “This Week” was also bullish on the U.S. economy.
“I spent the better part of 20 years forecasting the business cycle and stock market trends, and what I can tell you with certainty is that we’re going to have a strong economy through 2020 and beyond with a bull market.”
Questions have been raised about the economy as the nation’s manufacturing sector contracted 1.9 percent in the first quarter and by 1.2 percent in the second quarter, due to increased trade tensions and reductions in foreign markets. The U.S. stock market suffered its worst losses of the year last week.
DeSantis’ comments also came on the heels of another positive jobs report for the state, with the Department of Economic Opportunity on Friday estimating a 3.3 percent jobless rate, down from 3.4 percent in June.
Having an unemployment rate “just a hair over 3 percent” is a “great problem to have,” DeSantis said.
But, echoing what he’s said before, the governor acknowledged that the economy is “naturally cyclical” and the state needs to prepare for when the unemployment rate goes up.
“We don’t want anything bad to happen, but the reality is what it is,” DeSantis said.
The state estimate reflects 344,000 jobless Floridians out of a workforce of 10.35 million, well down from a decade ago when Florida’s unemployment rate approached 12 percent. In December 2009, there were an estimated 1.087 million jobless Floridians from a labor force of 9.2 million.
Friday’s Florida jobless report was released two days after government economists projected the state will take in about $867 million less in revenue over the next two years than anticipated.
The forecast is based in part upon a slowing economy and reverberations of financial decisions, including the loss of approximately $350 million in annual payments from the Seminole Tribe of Florida and a $543.2 million reduction in corporate income tax revenues.
Business-backed nonprofit organization Florida TaxWatch, however, wasn’t as dire as the economists, noting that collections for the fiscal year that ended June 30 exceeded expectations by $507.2 million, “mitigating the estimate reductions.”
–Jim Turner, News Service of Florida
Anyone who thinks this is a republican or democrat sole cause is a moron. That’s not how economies work. They ebb and flow over time no matter what. It’s how we respond to the ebbs and flows that dictate what works and what doesn’t.
Ron DeSantis also said the tax cuts would pay for themselves and would fuel 5% GDP growth! (What a joke for Gov)
Alphonse Abonte says
I survived the one day #TrumpRecession of 2019… Wow, that was a rough one!
Trump knows that he won’t win the next election, and he will face jail time. He is now working on hid insanity plea so he doesn’t do time.
Protect your 401K while you can!!!
Economy will fall because 1) Mexico is the largest importer of agricultural USA goods.2) Hispanic of all kinds are the most productive people in USA, business owners etc as far as new businesses., labor etc. Now you attack those economies that impact ours. 3) china not buying USA agriculture goods anymore they were 4th largest importers 5) trump also dividing USA, a house divided won’t stand. Many businesses failing,and taxpayers have to pay more taxes due not being able to write deductions off..thus these consumers have lost disposable income,thus less consumption, thus less demand, thus less jobs. Recession is guaranteed.
Alphonse Abonte says
Trump is a business man not a politician, he understands the market, this event will not hurt his reelection win!
FWIW the market goes up and down, sometimes a big move.
Gets Western European Allies on board to pay their share of NATO expenses: nothing to offer to liberals.
Is seriously challenging China’s trade practices, and their aggressive domination of the ocean: nothing to offer to liberals.
Stopped the need for Obamacare: nothing to offer to liberals.
Good dialogue established with North Korea, that other administrations had relegated to China (not a friendly nation): nothing to offer liberals.
Did not scold American workers and saw productivity rise: nothing to offer liberals.
Negotiated the return of an American prisoner: nothing to offer liberals.
Tax break for working Americans: nothing to offer liberals.
Lowest unemployment percentages ever: nothing to offer liberals.
Amped up veteran care: nothing to offer liberals.
Supreme court nominations that respect the constitution: nothing to offer liberals.
Has safeguarded 2nd Amendment rights so far (we will see): nothing to offer liberals.
Has a large base of working male and female supporters of all races: nothing to offer liberals.
Sincerely desires America to be the land of opportunity for all citizens: nothing to offer liberals.
Respect men and women of law enforcement, including those assigned to guard the borders: nothing to offer liberals.
Makes many international visits, and doesn’t bow or grab shoulders inappropriately: nothing to offer liberals.
Got us out of an insane Paris accord and not willing to spend trillions on unfounded global warming taxes: nothing to offer liberals.
Compared to a couple dozen failed liberal candidates that offer to spend my money for someone else to graze on: “Oh the insight, the sensitivity, the intelligence, the international awareness
If you want to see a Stock Market swan dive, watch what happens if one of the socialist Dems get elected.
The Dow Jones has gone up about 50% Trump was elected. Notice that now every stock market dip is trumpeted by the MSM as a RECESSION
Just the facts!
2015 annual GDP: 2.9%.
2018 annual GDP: 2.5%
Last quarter GDP: 2.1%
Highest debt and deficit in history
Auto manufacturing down.
Coal production down.
Steel jobs lost.
Farm loan delinquencies up.
Real wages down.
Yield curve inverted.
DOW lower than it was 12 months ago!
here we go again