Will The Market Explode?!

[Benton]

(11-25-2020, 06:33 PM)BFritz21 Wrote: 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.

Trickle down economics has been debunked at just about every turn. When companies receive tax cuts, there's no indicator they return that to the labor pool. It's good for the bottom line and shareholders, but that doesn't equate to more jobs.
Think about it.
If your employee comes to you and says "Hey, we can have $1 million in profit or we can have $2 million in profit" which are you going to pick? Are you going to ask "How do we save that million?" Are you going to care if it means outsourcing but you get a six figure bonus?
The job creation that existed under Trump was the same job creation that existed under Obama: record setting deficits. We're employing more people based off taxpayers, predominantly from the middle and upper middle classes.

Quote:[quote pid='956426' dateline='1606340024']
That also raised consumer sentiment, which is good because then people are spending their money and re-circulating it back into the economy.


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.

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

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The market didn't "take off" during Trump pre-pandemic. It continued the same rise as it had after the first couple years of the Obama administration. Dow, GDP, average wage, unemployment, etc., the Trump years were basically just a continuation of the Obama years.
The difference, down the road, is likely the tax breaks. Up until top earners got bigger breaks under Trump, we were borrowing less money to pump into the economy; the tax breaks, boiled down, mean we're borrowing more money to pump into the economy. 
As far as Biden's mental ability, that isn't really how it works. It's more about the people he puts into place. It's not like Biden (or Trump or Obama) sat down and said estimated what raising interest rates in the same year as lowering taxes would do (or vice versa). He has people for that. Basically, Biden (as Trump and Obama did before him) says what he wants to happen and his advisors try to make it so.
The stock market isn't going to collapse. Are we headed for a cooling off period? Probably. Are we going to keep borrowing at an unhealthy rate to offset that? Probably. Are we going to institute real reforms to change that? Probably not.