General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhy the stock market and economy continue to grow?
In my opinion, a large part has to do with the repatriation of profits of American corporations from foreign countries. It is likely in the trillions of dollars?
Much of this money, along with the huge taxcut, were spent on stock buybacks, creating a surge in the stock market. Also, the loosening of regulations and the taxcuts were a huge stimulus for the economy.
But there are opposing forces within all this stimulus. The trade policies, including tariffs, could have a huge drag on the economy in the near future. Along with bad-mouthing our trade partners, the policies of Donald Trump are a threat to the economy that has been growing for ten years.
lame54
(35,294 posts)The Obama economy is taking so long to tank
It's not from lack of effort
Doreen
(11,686 posts)It does not go up for the middle class and the poor. In fact for them it gets worse. At least that is what I have seen all of my adult and late teen life.
Wounded Bear
(58,670 posts)They finally de-coupled Wall Street from Main Street in the Clinton/Bush admins.
I think it is bubbling, and will droop someday soon. But I've been saying that for a while.
PoindexterOglethorpe
(25,862 posts)They buy things. Food, clothing, a new car, new appliances.
It's not just the rich, it's not just stock buybacks. It's everything.
The reason tax cuts for the rich don't stimulate the economy very much is that they're already spending as much as they want to on food, clothing, airplane tickets, and so on. When poorer people get a tax cut, they go out and buy a lot of things that they need, that maybe they've been putting off for a while. I know many people who always budget their tax refund for significant purchases.
What happened in the Great Depression was that a lot of people suddenly had essentially no money. They could just barely provide food and shelter for themselves or their families. That simply isn't the case right now. I'm not denying there are homeless people, I'm not denying that a lot of people are living very close to the edge, but I am pointing out that the bottom 90% is still spending money on things, and that's why the stock market and the economy continue to grow.
The people here who state that the market is in an unsustainable bubble, or that it's all a Ponzi scheme just don't get the underlying basics.
Wellstone ruled
(34,661 posts)are proof of what you speak.
Again,the Five Tech stocks that drive the Dow are all in buy back mode. As far as repatriation of foreign Profits,it is not happening as forecast,but the massive Tax break on US profits are fueling these buybacks thus driving the share price upwards. Oh and notice the amount of money flowing into Rethug campaigns by these same Companies.
PeeJ52
(1,588 posts)We buy food, clothing, paying for our kid's education, paying as much extra on the mortgage as we can, the utilities, a vacation, and that's about it. It's been that way for almost 20 years now. The middle class is stagnant and always will be until we start building the country's infrastructure back again. Once we start putting real money back into rebuilding our roads and bridges, the homes and cars will follow. I don't know why the politicians don't get it. Infrastructure is the only stimulus that can't be outsourced.