Obama Win Triggers Market Fall

by Sal on November 6, 2008

in Economy,Politics

Yesterday, the DOW dropped 500 points, signaling the biggest post-election day drop in the Dow’s history.  While the media is not mentioning the fact that this may be the result of the election of a socialist, I think it is highly possible.  The economic policies of Barack Obama and the Democrats are going to be disastrous for an already-flailing economy.  Already, the Democrats are pushing for a new demand-side Economic Stimulus Package, which, while in the short term may give a temporary boost, will do nothing to provide for the sustained, long-term growth that we have experienced for the better part of the last 28 years. 

With the election of Obama, I fully suspect the current economic situation to continue along its current path.  With a lack of supply-side pro-growth policies, along with Obama’s planned tax increases, we are likely due for a sustained recession.  Just when America needed Republican policies the most, they tossed them out.

{ 1 comment… read it below or add one }

Ryan November 6, 2008 at 10:52 am

I love how the Dems were initially against the first stimulus package, now they want a bigger, fatter one with plenty of pork I’m sure to buy allegiance from new Dem voters this year. All the first stimulus package did was help the Chinese economy, while padding bank accounts and shaky mortgages.

It didn’t stimluate the way it should have on “Keynesian” paper because in uncertain times people don’t have the confidence in their own financial future to buy big-ticket items. It’ didn’t work in the 1930s and it won’t work now.

Unemployment ticked up to 6.3% for October according to intial reports today, so I agree with you that the economy could use a dose of Reaganomics to oil the wheels of the economy, not Keynesian sludge to muck up the pump. Makes me wish the Republicans ran someone to clearly articulate that message this time around at the top of the ticket.

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