Economic Impact of Trump’s Election
By: Eric Rogowski
As everyone should know, Donald Trump has won the 2016 presidential election. This has led to massive protests and even riots in major metropolitan cities across the country. On the flip side, others are extremely happy to have a republican president in the oval office after eight years under a democratic president. Despite the opposing views within the nation, the stock market has increased to new all time highs. However, this rising stock market cannot continue its growth under President Trump.
Since the election, the stock market has had its best week in five years. It is unusual to have the stock market increase after election day. After only six of the last twenty-one elections, the market has gone up. Investors were able to weigh the opportunity cost of the uncertain stock market future, being bad or good, and believe the market was going in the right direction. This is due to Trump being a major business mogul himself and having a huge pro-business stance. Trump promises to cut corporate taxes from 35% down to 15%. Shares are moving higher based on Trump's’ campaign promises. In the short term, his ideals and promises have given investors confidence in his election. However the positivity will not last for long.
Trump’s own personal brands of clothing, hotels, and real estate have taken huge hits from his campaign. His estimated combined revenue has fallen 17% over the past year, due to his toxic and inappropriate behavior. Trump insulted minorities, women, veterans, and even the disabled; nobody is safe from Trump’s wrath. Historically, stock markets have risen and fallen due to the current president's comments and actions, and Trumps’ presidency will be all the same. One disgusting tweet could send the whole stock market tumbling down into another recession. Overall, the long term effects of having Trump as our president will have the stock market crashing down to the ground.
Works Cited
The Atlantic. Atlantic Media Company, n.d. Web. 14 Nov. 2016.
"The Economic Consequences of Donald Trump." The Economist. The Economist Newspaper, 09 Nov. 2016. Web. 14 Nov. 2016.
@MerrillLynch. "How Presidential Elections Affect the Markets." Merrill Lynch. N.p., n.d. Web. 14 Nov. 2016.
It's extremely interesting that the market went up after Trump won the election, even more so due to the controversial nature of this election. Furthermore, European markets actually went down for a time as it became more clear that Trump was going to secure the presidency. Also, it's been shown that markets respond cautiously to change. After the British exit from the European Union, known informally as Brexit, the stock market took a plummet as investors relinquished their shares. However, I think it is illogical to assume that the market will drop purely as a result of Trump's rhetoric. It's already been shown investors are willing to invest in a market when he's guaranteed more power, and the only thing that would change that is the actual policy produced from a Trump presidency, not the fiery rhetoric that spews forth from his mouth.
ReplyDeleteI think it's interesting that the stock market rose by that much after Trump won the election, especially considering the fact that he was projected to lose. However, it does make sense because Trump has a business sense built into him, that may help the rise of the stock market in the near future. All in all, Trump's election may be economically worth it.
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