by Daniel Carter
I’ve said it before and I’ll say it again: If you’re a Trump fan, I am not your enemy. I’d rather have Trump in office than the leftist/socialist alternatives. Unfortunately, Trump’s decision to take credit for the surge in stock prices is coming back to haunt him as we speak. I detailed why this was such a grave mistake in an article I wrote a few months ago.
In February alone, the stock market has lost $1 trillion in market value. With yesterday’s collapse of short volatility funds, the losses are set to go even deeper this week. After the stock market got off to its best start in 31 years, it’s now beginning to look downright scary. It’s hard to say what exactly will happen from here, but there could be a lot more stock market and economic pain to come.
If you’ve ever seen a long-term stock market chart, you know that recessions and stock market crashes are not that uncommon. Because we are going on the tenth year without a recession, the probability of a recession/stock crash in Trump’s first term is extremely high. Depending on how deep the economic loss is, Trump’s reputation may be badly damaged.
A bad economic event would be damaging because most people don’t know much about economics. The long-term cycle of expansions and contractions aren’t greatly influenced by presidents. Yes, presidents can influence short-term economic outcomes with tax and business regulation policy, but eventually the long-term trend will take hold. Because the average person does not understand this, they will be quick to blame the president. If you are looking for a rebuttal against people who are ready to blame Trump, use the Socratic method. Keep asking them questions about how Trump’s decisions influenced the economic outcome in question until it’s clear that they have no idea what they are talking about.
No matter what the truth is about who influences economic outcomes, this downturn is going to create a hellish political landscape. We can argue with individuals, but there is no arguing with angry mobs. People are already hysterical. Imagine how rabid they will be when retirement accounts dwindle, and jobs are lost. This will hardly be good for anyone; least of all for the people who want to keep tyrannical leftists from controlling government.
You may or may not know the story of Herbert Hoover, but he was a principled, small government conservative. He believed in free markets over government intervention. During his time as president, the stock market took the biggest dive on record and the Great Depression ensued. He was quickly voted out, and another Republican wouldn’t see the presidency for 20 years. We got the greatest expansion of government in history under FDR instead.
Let’s hope this isn’t a repeat of the past. If the Deep State and their leftist mobs can pin the next crash on conservative economic principles, it may result in a major loss of freedom. Arm yourselves with facts and figures on economic realities to try and stem the tide of big government propaganda.
by Daniel Carter