Yes, the Stock Market is Breaking Records because of Trump: A lesson on market forces

I continue to be amazed at the lack of knowledge that most people have. I mean most major malls have bookstores where people can buy and read books. The internet has voluminous amounts of information to sift through and we spend fortunes to send people through a public education system—yet still people are generally pretty stupid. It is baffling to me that they cannot make the direct correlation between the increase of the stock market gains and the Trump presidency—and that they don’t understand how 4 trillion dollars of extra investments into the American economy directly benefit every single person in our nation. Let me provide a little context of how much money that is—Russia, that country that supposedly has so much power over our elections has a GDP of 1.2 trillion dollars. Japan—one of the great economies of the world is only at 4.9 trillion. Canada has only 1.5 trillion in GDP and Germany is at 3.4 trillion dollars. When we talk about the gains in the stock market—specifically the Dow Jones average—since Donald Trump was elected we are seeing an infusion of wealth invested into our economy that exceeds most of the countries in the developed world. That is a significant achievement all by itself.

The next thing people wonder is whether or not Trump deserves any credit for it. Well, of course he does. Who else? If you do a little research into the history of stocks and investments you can clearly see a pattern for which the mob of buyers of stocks use to make their decisions. What investors love is optimism and deregulation and Trump has given them both right from the start of his election and that has caused investors to pour their money into opportunities created purely on sanguinity. It’s not very complicated and it certainly isn’t a mystery. Donald Trump gets the credit for the increases in the market based on his promise to get government out of the pockets of the movers and shakers and that has unleashed vast amounts of wealth that had been sitting around doing nothing. That’s how powerful optimism is and how limiting governments are on the happiness, and productivity of their citizens.

Venezuela is in trouble because they adopted socialism and the state runs everything leaving their markets overregulated and underperforming. They have great oil reserves that depended on artificially high prices to survive in a global economy. Once competition was once again opened up driving down the price of barrels of oil the socialist country couldn’t survive because they had provided no reason for any investors to bring money to their country. People with money are productive assets in a global economy because they have done things to earn that money. They aren’t villains as socialists and communists see them. Wealthy people are assets. Even politicians must admit as much because they need the money of wealthy people to run their campaigns. Without wealthy people any society is essentially an armpit of derelict behavior. The more wealthy people a society has—the higher quality that society will be. Venezuela made it so that wealthy people left and prevented more wealth from investing in their country leaving the people there struggling even to find a bar of soap to clean themselves with.

Wealth is created when something has a perceived value. For something to have such a value there must be a market demand for whatever that value represents—such as gold, cars, or old toys and cloths. EBay and can provide the proof of how joining market forces together can create wealth that wasn’t there before. Just by joining the consumer with a supplier those two companies have tremendously increased market value within America’s GDP. If there were some way in Zimbabwe to join together two villages which might otherwise be 30 miles apart so that they could sell rocks and animal bones to each other more easily, they would see an uptick in their economy as well. In places where individuals are freely able to exchange what they have to those who want it, you will see a more productive, and wealthy nation where the standard of living is much higher than places where personal freedoms are more tightly monitored.

This is why the communists of our present time have all put on the mask of the environmental movement because that way they could hide their hatred of production behind a well-intentioned cause—such as saving the planet. They have entirely made up the facts and figures. The government in the United States and around Europe who naturally always want more control use their power to issue grant money to scientific institutions who will make up phony global warming numbers to invoke their communist religion on the masses hoping ultimately to slow down production in develop countries so that undeveloped arm pit countries around the world can be propped up—the way Venezuela was. But all that value Venezuela had off oil money was artificially created by regulation—it wasn’t real—it was built off a lack of supply to meet a heavy demand.

Trump signed immediately legislation which put the Keystone Pipeline directly into use—at least the parts that could be. Trump immediately removed the federal restrictions so that local fights could hash out the details which had been the biggest barrier to implementing that very power delivery method of oil from Canada to the reserves along the Gulf of Mexico. Just that action alone sent the prices of oil down which was great for all market driven economies. While it might not have been great for Venezuela who depended on high prices to sustain their socialist government, oil is just one factor in a free economy. Cheap transportation can do much more to create many more aspects of wealth in any economy so it is far more important to a developing world to have access to cheap fuel and oil so that other markets can use transportation to develop new economic advances.

All Trump had to do to increase the stock market was promise optimism. The numbers are off lately from the record highs we had been seeing because of the obvious stand-off and war with North Korea. That creates market insecurity and makes people hang on to their money. If you really get to the gist of why so many senators have been coming out against Trump’s “optimism” its because they need the chaos of limitation to justify their do-nothing approach to everything productive. They, like Venezuela, need artificial regulations to justify their power. A free market means fewer people need government to redistribute wealth—and even Republicans have gotten used to that game. So long as people have no other options, their do-nothing game of pandering to lobbyists and getting rich off the results could continue. But Trump has not only deregulated the market and inspired great wealth which is reshaping our country as we speak—but he’s exposed those politicians with a value he has brought to politics that has redefined everything. So yes, they don’t like him. Just like Venezuela hates free and open markets. When people are allowed to do what they want and get what they need, all of society advances. But when they are limited and regulated society stagnates. All Trump did to increase the markets was show investors that he was willing to free them—and it is all just as simple as that. Just imagine what might happen if we really did have a free markets and politics were removed from the process altogether. Everyone could be unbelievably wealthy—everywhere in the world. If only……………………..

Rich Hoffman

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One thought on “Yes, the Stock Market is Breaking Records because of Trump: A lesson on market forces

  1. All I can say is this. Since Mr. Trump took over the VA has done a 360. Now when I go into the VA it’s     How can I help you. Hate to say it but in all the years past I had a real hard time getting past the little ladies at the front desk. One of my friends died because they wouldn’t let him see the doctor.   Right here in Middletown.Jack ChrismanVietnam    1967/1968


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