Kerby Anderson
Donald Trump won, and Kamala Harris lost, for many reasons. Certainly, the economy was one of the major reasons. Pundits and economists tried to tell the voters that the economy was doing just fine. The voters didn’t agree. Neither did the financial markets. Stocks rose immediately the moment it was obvious that Trump won.
The editors of The Wall Street Journal argued that the stock market rally suggested “a groundswell of growth optimism. Voters have taken off the table a big tax increase and continued regulatory barrage.” Voters and investors were fearful of looming higher taxes and had already seen enough of a regulatory assault that took place under Biden-Harris.
The editors do warn that stocks could fall in the future if the Trump policies turn out to be a disappointment. Concern over tariffs might be the next concern on Wall Street and on main street. But those concerns pale in comparison to the last few years of the highest inflation in 40 years and lower real wages. If you run the numbers, inflation-adjusted weekly earnings remain lower than when President Biden took office.
Inflation wasn’t the only issue; so were interest rates. High interest rates made it even more difficult to buy a home or to afford a new car. The average mortgage payment doubled over the last four years. “The bottom 40 percent of earners accounted for 6 percent of new auto purchases last year, compared to 18 percent in 2019.”
Millions of voters who didn’t vote for Trump in 2016 or 2020 voted for him this time. A significant percentage of them “never voted for a Republican for President in their lives.” They were ready to say bye to Bidenomics.