Will The Market Explode?!

[BFritz21]

(11-25-2020, 02:20 PM)Benton Wrote: 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. 

Biden could remove tax cuts that allowed corporations to make record-setting gains (or close to), and that allowed for job creation and obviously money to be trickled back into the economy.

That also raised consumer sentiment, which is good because then people are spending their money and re-circulating it back into the economy.

(11-25-2020, 02:20 PM)Benton Wrote: 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. 

Which is what to the first question?  The market cares because things like taxes, regulations, trade restrictions, etc., all impact the bottom line.

The market took off under Trump pre-pandemic.

To the second, I think it just matters what the people pulling his strings do.  I don't think he has shown the ability to be mentally "with it" enough to propose anything that could strengthen things.  Hopefully, he'll just stay in the basement like he did for most of his campaign and won't make many changes.

(11-25-2020, 02:20 PM)Benton Wrote: 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. 

You think Biden has shown the mental ability to be creative enough to do all that?