Since Trump's inauguration, Dow Jones has had record closing highs 79 times, with constant and gradual growth during the past year. Analysts say that this is partly due to Trump's pro business policies that make it easier for companies and corporations to be successful. Dow Jones is one of the most used stock indexes in the world and it includes companies like Microsoft and Coca Cola. The Dow is often used as one of the indicators as to how well the economy is doing. Seeing that the Dow has been at record highs during Trump's presidency is a sign that his policies are helping businesses. I think that Trump is on the right track on decreasing business regulations because when businesses are less restricted, they tend to be more successful because they are free to run their companies how they want to and do what they want with their profits. Trump's plan to lower the corporate tax rate is an example of how Trump wants to make his policies more business friendly. I think that Trump's economic policies are showing signs that they are doing good for the economy and the performance of the stock market during his presidency is an indication of the success of his policies.
How do you guys think Trump is doing with the economy?
Do you think that decreasing regulations on businesses is a good idea?
What do you guys think about lowering the corporate tax rate, how will that effect the economy?
5 comments:
I believe this is just a result of a republican president. Most republican presidents leave the businesses to themselves, and have hands off approach to the economy. If you remember the economy was doing quite well in the first year of George W. Bush presidency. The problem with Bush though, was that he was too hands off, and let the banks go crazy leveraging AA and AAA with rundown homes. The lack of inspection may lead to other problems in the future. I believe that it is too early to tell whether Trump's approach is good.
I agree with Sid, and in a way with John, that the approach to business from a Republican president is certainly aiding the growth of the stock market. Dow Jones truly has soared, and that isn't an understatement. I think it's important to view this as a success, but as the Washington Post hints (https://www.washingtonpost.com/news/business/wp/2017/08/02/dow-jones-crosses-over-22000-for-first-time/?utm_term=.8d7098f05571), not everything that the president is doing has effected the market in a positive way. Korea, Venezuela, and the struggles in Washington have put a slight damper on the market. Of course not all of the world events are the president's doing, so please don't believe that's the perspective I'm offering. I'm merely mentioning the world events that have pulled the market in the opposite direction.
Despite this, you are right in saying that as of his first year, Trump has made it easier for larger companies, and those who have investments are certainly reaping the benefits.
I think lowering the corporate tax rate has several positives and negatives. The first benefit is that it can potentially increase the salaries of employees because companies can give a share of the money gained through the tax reduction, to the employees as a salary boost. This extra income for employees can result in employees spending more money and thus leading to economic growth. Decreasing corporate tax rates can also also increase mergers and acquisitions because companies have more cash on hand to spend for this purpose. Another benefit is that lower tax brackets are an incentive to start new businesses as they know that they won't have to give up a lot of what they earn, to taxes. The negatives about lowering corporate tax rate, are that this can potentially cause banks to increase interest rates because with more cash in the economy and amongst consumers, there will be a higher demand for loans. Another potential negative is that this may lead to inflation because when there is more money with the consumers, businesses may feel free to increase the prices of products as they know the consumers have enough money to pay.
This stock price increase is definitely the result of having a Republican as our president. The stock market might look good now but there is no guarantee that Dow Jones will continue to soar. Indeed, reducing corporate tax could potential raise the salaries for employes. Lowering corporate taxes could mean increased wages, employment and GDP. As far a regulations, we either need to keep it the same or have more. As we have seen in the past a lack of government regulations on business have only led to financial crises. In addition, keeping government regulations will give the best chance for many small businesses to survive.
It takes 12 to 18 months for new president’s policy to influence economic performance. Trump hasn’t even been in office for 11 months and, as people have complained, his administration has yet to gain a political “win” yet. The Trump administration has yet to pass any tax reforms that could have influenced the economy.
Post a Comment