As a financial writer in real life, I find it odd that the economy is not being ballyhooed by the Republicans more during this Midterm election. Or should I say not mentioned in the media more.
Stocks, as measured by the Dow Jones industrial average, are up 25% since President Trump was elected.
No the only focus the stock markets get nowadays is the recent gyrations in October, which also overshadowed the latest wage data showing a pay raise of more than 3% according toLabor Department data released Wednesday. The wage gains make sense since there is now a decades-low unemployment rate.
An argument could be made that the recent stock pullback story has much to do with a concern that the Democrats could possibly win the House of Representatives.
Certainly Wall Street has a growing concern that Rep. Maxine Waters could take over the leadership of the House Banking Committee. The same Maxine Waters who told protestors to go after Administration members of Republican members of Congress if you see them in a restaurant or the movie theater.
It’s not a question of impeachment, because that will never be in the cards, since the Democrats will never have enough votes to get charges brought and passed onto the Senate. No the real question is what do the Democrats stand for economically?
There’s very little evidence of any economic platform or any platform except being anti-Trump. But no one calls them out on this.
A perfect example of this is in San Francisco, where the Democratic Mayor and city council want to raise real estate and business taxes to stem the tide of growing homeless people defecating in the streets among other quality-of-life issues.
Left-leaning Silicon Valley firms like Google and Amazon among others are squawking over having to pay more taxes. Threatening to move out of the city if they are forced to pony up cash to alleviate a problem they caused by moving in and distorting the cost of housing in the Bay Area.
So where is the left’s economic thought? Clearly tax and spend doesn’t resonate with its biggest boosters — California tech companies.
And I would say it does not sit well with many institutional investors as well.