What happens to the stock market under a Democratic or Republican President?
Below is a wonderful chart that shows the stock market performance under a Democratic and Republican president. Your first reaction should be that the S&P 500 index doesn’t really care if a president is a Democrat or a Republican. The index keeps marching higher regardless of who is in the White House.
What happens to the stock market in a President’s third year?
The equity party continues well into a president’s third year in office when there’s a push to stimulate the economy ahead of the next election. It’s no coincidence that the best market returns come during that period; the S&P 500 rises an average 16% in that third year.
Does the President affect the stock market while in office?
Presidents get a lot of the blame, and take a lot of the credit, for the performance of the stock market while they are in office. However, the truth is that the president's ability to impact the economy and markets is generally indirect and marginal.
What are the characteristics of stock market socialism?
Stock Market Socialism. The government has no such check to its ability to direct resources. The government's source of revenue is from taxes, not from serving the customer. Therefore, it is not subject to market forces. It invests money (and thereby direct resources) according to its own bureaucratic rules.
How to phase out Social Security?
The best solution is to phase out the Social Security program by taking two steps. The first step is to stop enrolling new members into the system. The second is to allow anyone who is currently enrolled in the program the option of leaving the system and forfeit all that they have paid into the fund.
Why is the stock market important?
Mises said, "A stock market is crucial to the existence of capitalism and private property. For it means that there is a functioning market in the exchange of private titles to the means of production. There can be no genuine private ownership of capital without a stock market: there can be no true socialism if such a market is allowed to exist."
What is the second option for the Clinton administration?
The second option is to drastically reduce the "benefits" being paid out by the fund. This action is also politically unacceptable. The third alternative is to somehow increase the rate of return on the current surpluses to cover the future. The thinking in the Clinton administration is simplistic at best. The plan assumes (wagers) that the stock market will continue to increase (forever) at rates high enough to meet the projected needs.
What happens if a company does not align with the political climate?
Imagine the consequences if a company does something that is not aligned with the political climate. The result is that entrepreneurs will no longer listen to customers' needs , wants and desires . They will be stricken with fear by the implicit or imagined consequences of disobeying the politicians. In Fascist Germany and Italy, entrepreneurs owned their businesses, at least on paper, but in reality they became pawns of the politicians. Fear is a powerful motivator.
How high will Social Security taxes be in 40 years?
There have been some projections showing FICA taxes as high as 82% in forty years. The second option is to drastically reduce the "benefits" being paid out by the fund.
What is profit in economics?
Profits are the result of coordinating the market. Those who do not, suffer losses. A string of losses forces the entrepreneur from his position as entrepreneur and back to a position of a laborer. In other words, he must go to work for someone else.
Is the Social Security system unstable?
The justification for this argument is that the social security system is unstable and will face financial strains in about 2014 and will be exhausted by 2032. There are a few options that the Washington elite have deemed as "solutions." Most of these ideas are politically unpalatable. The first is an increase in tax collection. Over time, the needs of the social security fund will be so high that it will stifle the entire economy. There have been some projections showing FICA taxes as high as 82% in forty years.
Why do presidents like to lead during times of economic expansion and a rising stock market?
All presidents would like to lead during times of economic expansion and a rising stock market because those usually increase their likelihood of reelection. As President Bill Clinton's campaign manager, James Carville, once famously said, "It's the economy, stupid.". 6. This chart shows the S&P 500's price change over each four-year presidential ...
How does the President affect the economy?
However, the truth is that the president's ability to impact the economy and markets is generally indirect and marginal. It's Congress that sets tax rates, passes spending bills, and writes laws regulating the economy. 1 That said, there are some ways that the president can affect the economy and the market.
How much does a president make a year?
Relatively speaking, presidential salaries are pretty tame, currently $400,000 a year. 13 Presidents make their money when they leave the office with lucrative book deals and speaking fees.
What is the role of the President in the government?
Because the president is responsible for implementing and enforcing laws, they have some control over business and market regulation. This control can be direct or through the president's ability to appoint cabinet secretaries, such as the head of the Department of Commerce, as well as trade representatives. 2
Who sets monetary policy?
The president also nominates the Chair of the Federal Reserve, who sets monetary policy along with the other Fed governors and members of the Federal Open Market Committee. 3 4 The Fed is an independent government body with a mission to set monetary policy that ensures economic growth, low inflation, and low unemployment.
Why did the two presidents have two names?
Two of the terms have two names because President Kennedy was assassinated before the end of his term, and President Nixon resigned before the end of his second term. Their terms were finished by their vice presidents, Lyndon Johnson and Gerald Ford, respectively.
What did Karl Marx do when he took over the Russian stock market?
Karl Marx labeled publicly traded securities “fictitious capital,” and one of the first things the Bolsheviks did when they took over was to close the stock exchange as a case of the “vulgar” economy of the “reactionary” bourgeoi sie. Russian citizens, rich and poor, lost millions.
Who is the CEO of Whole Foods Market?
John Mackey, CEO of Whole Foods Market, has read my book three times! “I recommend it to all my friends as the best history of the great economic thinkers.” Milton Friedman has said of my book, “All histories of thought are BS — Before Skousen!”
Who was the foremost critic of “godless” communism?
Ezra Taft Benson was the foremost critic of “godless” communism, and I met and corresponded with him over the years. When he was Secretary of Agriculture under President Eisenhower in the 1950s, he traveled to the Soviet Union and filed this moving report at the end of his tour:
Who is Mark Skousen?
Mark Skousen. Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books. Look at the chart below.
What happens if taxes are raised in the future?
The pursuit of money can be very exhausting. Therefore, if and when taxes are raised in the future, it may help quell the desire to earn more money. If taxes are raised, all I ask is that more families get more healthcare relief.
Why do Democrats have control of both houses and the presidency?
Because the Democrats have control of both houses and the presidency, more taxes will be passed. There will also be more spending to help all citizens. As a result, I plan to take things down a notch once I get vaccinated or once taxes go up, whichever comes first. I’m tired of the hustle during the pandemic.
Which president had the worst annualized equities return?
Bush Junior was the worst performer with a -3% annualized equities return under his presidency. Bush Junior was unlucky because of 911 and the wars.
Why did Obama feel like a savior?
In a way, President Obama felt like a savior at the time because things were so bad in 2009. It was a very concerning time because I had lost 35% of my net worth in just six months and many of my friends and colleagues had lost their jobs. It was almost deja vu again in 1Q2020 until the Federal Reserve unleashed the largest economic stimulus package ever.
When did Donald Trump become president?
When Donald Trump officially became president starting January 20, 2017, I also noticed my financial outlook began to change.
Does a Republican president affect the S&P 500?
The main lesson of this article is that a Democrat or Republican president doesn’t really affect your investment returns. As there are so many variables that influence the S&P 500’s index performance, who is president is not a significant factor.
Does the S&P 500 care if the president is a Democrat or Republican?
Your first reaction should be that the S&P 500 index doesn’t really care if a president is a Democrat or a Republican. The index keeps marching higher regardless of who is in the White House.