I recently received a list of reasons which a childhood friend of mine now uses as justification for his continued, unwavering support of Trump. First in his list was “My 401K’s doing great.” Also on his list of things he admires about Trump is his admiration for Trump’s pursuit of policies which seek to restrict access to immigrants, and most specifically to Muslims … “because they will all eventually just vote Democratic anyway.” That should provide you with a pretty good insight as to the other items on his list of supposed Trump accomplishments.
Trump would have you believe just that, that he alone is responsible for the rise in the stock market. His “you could shoot someone in the middle of the street and I would still vote for you” crowd enthusiastically believes that, even though most signficant benefits from the rise in the market are realized by that very small percentage of large investors. But as with virtually everything else the man has either said or done, neither reality nor truth have been particular hallmarks of his Presidency … or his life.
Trump blithely takes credit for an economy that, other than the particularly surging stock market, is essentially the exact same one he was left with after eight years of Barack Obama. While certainly not yet in any kind of robust, full recovery for all segments for our society, the economy continues on the slow, steady recovery that was begun after the recession was turned around at the beginning of 2010 under Obama’s leadership. Jobs continue to be created and unemployment continues to fall just as they have done for the last six years. Nothing magical that the Donald, or the Republicans, have done has had any effect of this whatsoever. I mean, what amazing new legislation is supposedly responsible for this? All he has been able to do (thank God) is to sign a bunch of executive orders whose primary purpose has been to dismantle as much of Obama’s legacy as he thinks he can.
The stock market certainly, improbably, continues to rise to record levels. There is no doubt about that. But it too has been on a slow, steady rise since 2010. Perhaps the precipitous rise in the stock market since the election, can indeed be traced in some part to the Donald effect. But just exactly why is that? Because of his wonderful policies that have amazingly freed our economy from the chains imposed upon it? Hardly.
The stock market very likely has continued to rise because the people who control it – the large investors, certainly not the individual investors like you and me – are still pretty happy. Those large investors seem still to be convinced that the Donald’s policies will be a boon not only to him personally, but will also be a boon to all of the other wealthy individuals who control the vast percentage of the wealth in this society. When that bubble does burst, and you can be sure that it will, don’t hold your breath waiting for the Donald to accept any responsibility for it. He will blame anyone and everyone but himself.
Have you ever noticed that when the stock market goes down, when it goes back up you never quite make up what you lost when it went down, and more often than not, the regain is significantly less than what you lost? Granted, I only have anecdotal evidence of that from my own experience over the years. I do not have any hard and fast facts to back up that assertion. However, I wonder how many of you have experienced the same thing?
Someone is taking in that profit, and it sure is not the average investor. So like I say, the people who control the market seem to be quite happy right now. And why not? The prospect still is in the works for them to receive incredible tax breaks from the potential end of the taxes in the Affordable Care Act, as well as proposed lowering of the higher income tax rates with tax reform.
Setting aside for the moment Trump’s continuing sophomoric, and increasingly infantile behavior, both on Twitter and otherwise, his presumption of personal credit for a suddenly rebounding economy is just another of the lies that he has been peddling ever since he became a candidate … and well before.