Thursday's stock market crash was a reminder of precedent that follow republican administrations. The DJIA closed at 21,220, down 2352 points or 10%. It was the worst day since Black Monday on 10/19/87 when the DJIA was down 22.6%. Last month the Dow closed at a record 29,500, so in less than a month the Dow lost over 8,000 points as of Thursday this past week. The Nasdaq and S&P 500 also plunged and all three fell into the zone of a bear market. And it all took place on Trump's watch.
So now the worst four stock market failures took place on the watch of four republican Presidents. Herbert Hoover during the great depression of 1928-29, Ronald Reagan on Black Monday in 1987, George W. Bush in 2008 that ushered in the great recession and now Trump in 2020. It follows a pattern and precedent on the republican watch and to top it off, the three greatest bank failures took place on the republican watch. Herbert Hoover during the great depression, the Savings and Loan failures during the Reagan Administration and the Wall Street banks and other financial institutions during the George W. Bush administration in 2008.
And as we all know the Reagan, Bush 43 and the Trump administration implemented a tax cut that favored the wealthy and corporate America and said would make business more competitive, invest more in plant and equipment and move America forward. But those tax cuts were never used for the purpose stated, instead, it was used to build more personal wealth. The Trump tax cuts should still be fresh in our minds because we know those tax cuts were used to buy back company stock that ran up the per share price of those stocks and as a result the stock market was over priced and due for a fall.
Its not the coronavirus that is driving the stock market decline or the deep drop in oil prices. Its the global economy slow down and the fall out from that, including the United States that is driving the markets. A lack of demand for energy due to the slow down has produced a glut of oil on the market and falling oil prices and the manipulation by OPEC and other producing countries also plays a role. Then you have Trump trying to manipulate the federal reserve to interfere with the economy. And you have the fact that the Trump administration governs by a tax ideology rather than a economic policy are also a large factor. And unless one forgets, job creation is not keeping up with the jobs created on President Obama's watch.
What is taking place in the stock market was predictable. Its been played out in the past and PolitiDose has been on the front lines for the past 9 years with commentary on the subject matter and how republican administrations have been a failure for years in every phase of governing and policy and the reasons why. So stay tuned to PolitiDose, your daily dose of political commentary because understanding the failures of the past are still the key to a better future.
This commentary written by Joe Lorio
