fullspinzoo wrote:
Inherited from Obama? What a crock. Obama never set a record in the stock mkt during his first term. Obama never went above 2.9 GDP annually for all 8 years.
I'll assume the 2.9 figure is a reference to growth rate since the GDP is measured in dollars not ratios and I'm just going to laugh at how you say Obama never went beyond 2.9% and then fail to mention that Trump hasn't either.
And before you point to that graph in the CNBC article you linked to, have a closer look. It's very misleading. The numbers on the chart are not the actual growth rate numbers; they are expressions of the percentage increase from the previous quarter. So you can have a 1% growth rate but if in the next quarter it goes up to 1.25% that's a 25% increase. See how that works?
The stock market can't go from 0 to 60 in 2 seconds zoo. We are seeing higher numbers under Trump by virtue of the simple fact that Trump came AFTER Obama who started at ZERO where Bush left him. He had to pull the car out of the ditch, get in, start the engine back up again and shift into first gear, by the time Trump took over we were already in 5th gear and pushing 50. So even though Trump got to 60 and Obama didn't, doesn't mean that Trump deserves all the credit for getting there.
That being said, I will agree that Trump's deregulations MAY have had some additional influence on the stock market but then again, it also works the other way. Regulations also have a similar effect - it really depends on what stocks we're talking about. Regulations on Big Oil for instance will send g***n e****y stocks soaring.
On the other hand, I have no problem crediting the 2017 tax cuts for the current spike we see now. These tax cuts, which were sold on the idea that they will encourage companies to invest in jobs, resulted instead in a wave of stock buybacks, which pushed the index to these record breaking levels we see now. It is in effect a result of Trump's failure to create jobs with a corporate tax cut. But hey, you get lemons you make lemonade, right? So he fell short on the job creation promise, but look at that stock market, eh?
But here's why people like me aren't dancing in the streets about it.
The direct cost of this tax cut is a massive increase to the deficit. "In the two years since the Tax Cuts and Jobs Act of 2017 took effect on Jan. 1, 2018, the annual U.S. federal deficit has grown from $681 billion to a bit over $1 trillion, according to the Treasury Department."
https://www.bloomberg.com/opinion/articles/2020-01-23/blame-1-trillion-federal-deficit-on-trump-tax-cuts-and-spendingOf course this all gets added to the national debt, that Republicans, who were lighting themselves on fire with outrage over the national debt when Obama was in office, suddenly don't have a problem with anymore.
So here's the question... is the dribble-down from engorged companies worth the critical services of our republic. Is it worth our national security? 'Think I'm being dramatic? Well, the impact of the 2017 tax cuts have been projected over the next ten years and the impact on the national debt is THAT bad.
Also, (and this is more perspective than dispute) there is the inescapable fact that the 2017 tax cuts took money previously allocated to our republic and put in in a globalized stock market that can be manipulated by anyone in the world that has the financial leverage, including Russian oligarchs and Saudi sheiks. In other words, trading in federal revenue for an elevated stock market is the opposite of "putting America first"