ANALYST CLAIMS TRUMP BUSTED US ECONOMY
President Donald Trump said the stock market “will crash” if former Vice President Joe Biden were to replace him in the White House during the final presidential debate. Fact-checkers said this statement is false on its face. The stock market is not expected to dip if Biden is elected, let alone “crash,” although investors are worried about the specter of a contested election raised by Trump’s attacks on mail-in voting.
Recent analyses by independent financial experts of each candidate’s economic plan predicts that a Biden victory and a Democratic takeover of the Senate would produce up to 7.4 million more jobs and a faster economic recovery from pandemic recession than a victory for Trump and the GOP, Mike Ludwig said in his October 25, 2020 report for Truthout.
“Since his first run for office, Trump has billed himself as a boon for the economy, but his record is obscured by his rhetoric. Trump has consistently used the stock market as a barometer of the economy’s health, but economists say that view is out of touch with most of the population. The bottom 90 percent of households in terms of income hold only 12 percent of corporate equities and mutual fund shares, and the bottom 50 percent hold only 0.16 percent, according to federal data. That may be one reason why Biden responded to Trump’s attacks by highlighting the economic pain middle class families are feeling as a result of the coronavirus pandemic,” Ludwig added. “Where I come from in Scranton and Claymont, the people don’t live off of the stock market,” Biden said.
Business investment plummeted under the Trump administration even before COVID-19 hit and despite Trump’s massive tax cuts for corporations, according to EPI research director Josh Bivens. The administration also undercut labor rules and standards that degraded bargaining leverage for workers, sending more wealth toward upper class. “You don’t have to be an economist to know how the U.S. economy is doing today: It’s an utter shambles, with tens of millions of workers unable to find the work they need to get by, and with tens of millions of families facing extreme hardship and anxiety,” Economic Policy Institute (EPI) research director Josh Bivens wrote.