Indicators of a looming recession stare down the throats of all of us, but according to Moody’s Analytics economist Mark Zandi, some states feel the predicted recession has already hit them.
According to Zandi, the following states are in a recession:
Wyoming, Montana, Minnesota, Mississippi, Kansas, Massachusetts, Washington, Georgia, New Hampshire, Maryland, Rhode Island, Illinois, Delaware, Virginia, Oregon, Connecticut, South Dakota, New Jersey, Maine, Iowa, West Virginia and Washington, D.C.
Economist Michael Szanto told NewsNation that he believes the downturn can be blamed on….The Fascist Felon’s stupid tariffs,
“We’re in a challenging situation,” he said. “There’s a little bit of a lag in the pain and problems caused by the tariffs.”
“We have the highest tariff rate regime in over half a century that is going to prove a very tough challenge for the American consumer and for the economy overall.”
Why are some states in or near recession?
Most of the states in or near recession produce goods, Zandi said. Agriculture, mining and light manufacturing are frail, and a weak transportation sector is exacerbating that, he said.
But the “DC area stands out due to government job cuts,” Zandi said. The federal government is one of six industries he sees in recession. Others include transportation and distribution, agriculture, mining, manufacturing and construction.
“No surprise those industries struggling the most are most impacted by the higher tariffs, highly restrictive immigration policy, and the DOGE (Department of Government Efficiency) cuts,” he said.
Why are California and New York the states to watch?
California and New York have staved off recession but they’re walking the line, Zandi said. If either one falls into recession, Zandi predicts, it’ll take the rest of the nation with it.
Together, the two states account for more than a fifth of U.S. economic growth. “Their stability is crucial for the national economy to avoid a downturn,” he said.