![]() He feels he has launched the great American comeback. Trump likes to credit himself with bringing about an economic boom the likes of which the world has never seen before. A 28.6% growth during Trump’s third year fell pale compared with Obama´s 32% when recovering from a financial crisis. Stocks grew faster after the reelection of both Clinton and Obama. His 2019 stock market gains are still minimal compared to his predecessors. When Trump started and introduced his tax cut, stocks were high but they have declined progressively since he started his trade war. Obama ended his presidency with one of the best gains of any president in modern history. The stock market was up 46% with Obama compared to the 25% under Trump. Leaving us to think that capitalism acts regardless of who is politically in charge. In essence the stock market was thriving under both presidents. ![]() While an updated analysis would have the gap narrowing, it would still be significant.) stocks returned an average of 1.71% under Republican administrations and 10.83% under Democratic administrations. We can track data over longer time periods and see that US stock performs better under democrats. But the market still did better with Obama as president for his first three years.Įven though as mentioned frequently before that it is not valid to attribute stock market performance to a person. ![]() We can observe a steady climb through most of Trump’s first two years. And how did the stock market perform under Trump’s leadership when compared to Obama´s? We are doing our best to keep this a data driven piece and not turn it into a political viewpoint.Īnd we want to point out again that no one can claim responsibility over the stock market, only slight influences can be observed. The tax cuts and the federal reserve that is keeping the interest rates low and flooding the markets with cash. It is possible that there are two reasons as to why the stock markets have risen. Well, my Machine Learning model basically thinks that the stock market kept growing just like the momentum that you gain when someone pushes you on a bike… you keep going because you got the right push. It did grow too with Trump I hear some people say that it is all because of how Obama provided a stable and drama free environment for companies to grow and thrive while other people say that the economy boomed (although I may say “kept booming”) because of Trump’s policies. The stock market more than doubled during his time. Regarding the stock market, here is a chart below. Obama added over 1.6 million more jobs in his last three years in office compared to Trump’s first three years. ![]() Monthly job growth was higher under Obama than in the first two years after Trump took office. ![]() Therefore, job creation under the Trump administration is merely a continuation of an improving job market and can´t be compared to the turnaround in the early years of the Obama administration. Even though 6.6 million jobs were created under the Trump administration, we shouldn’t forget that Obama inherited an economy during the worst financial crisis since the Great Depression. The unemployment rate pre-covid-19 was indeed at a half century low but this rate has been falling steadily since 2011, so we can’t really see a difference since he took office. With middle class income households getting a tax cut of about nine hundred thirty dollars and the top one percent really enjoying a cut of more than fifty thousand dollars. And the 2017 tax cut was only beneficial toward corporations and the rich. Referring to the stock market´s pre-covid-19 record highs, the wealthiest ten percent of the shareholders own more than ninety percent of all stocks. ![]()
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