Will The Market Explode?!

[Benton]

(11-25-2020, 01:39 AM)BFritz21 Wrote: I was losing money in the stock market at a pretty steady rate, but now that a vaccine looks to be on the way, I've made some nice gains in the past few days.

I figured that once a vaccine got developed, the market would take off, but, when Biden got elected, I started to fear a huge collapse and figured I'd lose all my money because people would start freaking out about his high tax plans on the wealthy and his instability.  

If Biden just keeps his hands off, will the market continue to grow and explode?

Hands off what? Presidents don't direct control the market. There are things they do have control over, but what may cause a dip on one end may cause a rise in another. 

Quote:I need this money for the rest of my life, and I'd be a HUGE burden on my family without it.


Will it continue to grow?  Do you think there's any possible way for Joe to screw it up?

To the first question: he'll most likely take a similar economic approach as Obama did. By and large, stocks went up from 2009 through 2016 at about the same rate as they did from 2016-2020 (pre-pandemic). The market doesn't really care who the POTUS is. 

To the second: sure. Personally, I don't think he will. I think we'll have the slow and steady economic growth we've had for the last decade at the cost of our ever increasing deficit. 

Quote:Will jobs come back?

Not without some significant reforms. Low wage jobs, sure. Service jobs, sure. 

But take the NAFTA reform. It wasn't bad, but it wasn't super beneficial for workers. Good for US farmers and Mexican auto workers (mandated a wage increase for them) but it didn't do a lot to bring jobs back here. It was reform, but it wasn't significant. 

You want to increase jobs, one of the easiest ways is tax reform. Close overseas loopholes and set tax rates high... but give companies breaks for employing US workers. The higher the percentage of US workers, the higher the break. You can still keep a number of the breaks in place and deferments, but it would effectively tie jobs to profits: the more US jobs a company has, the more money it gets to keep, as opposed to a system where companies are paying substandard wages or outsourcing labor overseas and taxpayers are subsidizing that.