Reopened states revive economy as doomsday predictions don’t materialize

Vice President Mike Pence, left, and Florida gov. Ron DeSantis eat lunch at Beth’s Burger Bar Wednesday, May 20, 2020, in Orlando, Fla. Pence is also scheduled to participate in a roundtable discussion with hospitality and tourism industry leaders to discuss their plans for re-opening.

Positive economic news poured in from reopened states Wednesday as President Trump hosted the governors of Arkansas and Kansas at the White House, while Florida’s governor blasted the media for incorrectly predicting that he ended the state’s coronavirus shutdown too soon.

Arkansas Gov. Asa Hutchinson, a Republican, told the president in a White House meeting that his state is “back to work” and that the state’s sales tax revenue likely will bounce back faster than expected.

“All of our retail stores are open, all of our retail establishments totally are open, our gyms are open,” Mr. Hutchinson said. “Our barbers are open, our restaurants.”

Echoing the president’s prediction of “pent-up demand,” Mr. Hutchinson said he now projects the state’s sales tax revenue will be down only 5%, instead of the 10% he had projected.

The president said that prediction is more evidence of “a great transition period” in the third quarter.

“I think you’re going to have a very good fourth quarter,” Mr. Trump said. “States are opening up, some rapidly, safely.”
White House economic adviser Larry Kudlow, citing the Congressional Budget Office, said third-quarter growth could be 21.5% — “the biggest growth quarter in American history.”

Courtesy: The Washington Times