Political Discussions for "Adults"

~~jwb~~ · 08-15-2019, 02:56 PM

I honestly think the president has less to do with the state of the economy than we think.

Specific **** you do can hurt the economy yes. And maybe if you're plunging downwards, something like the stimulus can soften the blow.

But as for genuine growth... I think that's largely outside their control.

Lucem Ferre · 08-15-2019, 03:04 PM

I think the economy is a very unstable thing but I do think the policies we pass have a significant impact. The last recession was directly linked to the deregulation of bank lending such as the affordable home act. Not every bounce in the Dow is directly related to how well the economy is (from what I understand). It's just noted that 9 times out of 10 huge drops in the Dow just like yesterday's has historically been followed by a recession. This time it was directly caused by the president.

~~jwb~~ · 08-15-2019, 03:18 PM

Quote:

Originally Posted by Lucem Ferre

I think the economy is a very unstable thing but I do think the policies we pass have a significant impact. The last recession was directly linked to the deregulation of bank lending such as the affordable home act. Not every bounce in the Dow is directly related to how well the economy is (from what I understand). It's just noted that 9 times out of 10 huge drops in the Dow just like yesterday's has historically been followed by a recession. This time it was directly caused by the president.

Yeh but that was a Clinton era policy. And Clinton was always credited with having a great economy. That's kinda exactly what I mean...

Lucem Ferre · 08-15-2019, 03:23 PM

Quote:

Originally Posted by jwb

Yeh but that was a Clinton era policy. And Clinton was always credited with having a great economy. That's kinda exactly what I mean...

I thought it was deregulated under Bush. That's kind of what we mean when we say it usually takes longer for somebody to put us in a recession. Policies typically don't have an immediate effect.

Edit: And that wasn't they only lending policy that added to the 2008 recession, it's just the most notable one.

Lucem Ferre · 08-15-2019, 03:29 PM

Quote:

Originally Posted by elphenor

Clinton did deregulate the banking industry in a way that's largely been credited to causing the fallout in the recession

They both did. I guess Bush actually wanted to add regulations but couldn't because they wanted to strike a deal to push it through.

*Wouldn't.

Edit: I'm reading an article about it that says Bush was really trying to push for getting as many home owners as possible especially for minorities and he didn't think it should be regulated. In regards to the act that Bill pushed he did want to add regulations because he foresaw what they'd do but wasn't willing to cut a deal to push it through. It's definitely both administrations.

Lucem Ferre · 08-15-2019, 03:49 PM

It's always annoying how hard it is just to get clear information on these things. I get it's not a simple issue and there are tons of different pieces to the puzzle but it's annoying how much you have to dig to learn things so you're not spewing misinformation around like a PragerU add.

**Frownland** · 08-15-2019, 05:26 PM

Quote:

Originally Posted by Lucem Ferre

From what I read the Dow drop happened because of China's retaliation to Trump's trade tariffs. People started pulling their stocks with uncertainty. They started going back up after China announced that they are going to try and reach a consensus with the US. So recession warning may have just been a precaution. A lot depends on this meeting though.

But from what I've found we've experienced some of the biggest Dow drops under Trump. We've also experienced some of the biggest rises under Trump too. I'm not sure what that means.

We've had the largest point drops under Trump because the Dow is at it's highest point in history and it would've happened under any president. All of the largest drops in points occurred under Bush, Obama, and Trump. In terms of greatest drops by percentage of the Dow, the largest ones occurred on Black Monday and during the Great Depression. Some of the highest percentile changes did occur under Clinton and Bush though.

https://en.m.wikipedia.org/wiki/List...strial_Average

Lucem Ferre · 08-15-2019, 05:33 PM

Quote:

Originally Posted by Frownland

We've had the largest point drops under Trump because the Dow is at it's highest point in history and it would've happened under any president. All of the largest drops in points occurred under Bush, Obama, and Trump. In terms of greatest drops by percentage of the Dow, the largest ones occurred on Black Monday and during the Great Depression. Some of the highest percentile changes did occur under Clinton and Bush though.

https://en.m.wikipedia.org/wiki/List...strial_Average

Okay, I assume that's why they never made that big of a deal the many other times the Dow dropped 800 points last year.

**Frownland** · 08-15-2019, 05:35 PM

The Dow is a pretty ****ty and archaic reflection of the economy anyways.

Lucem Ferre · 08-15-2019, 05:45 PM

Quote:

Originally Posted by Frownland

The Dow is a pretty ****ty and archaic reflection of the economy anyways.

Quote:

Originally Posted by Lucem Ferre

Not every bounce in the Dow is directly related to how well the economy is (from what I understand).

Ahh so taking faith that you understand better than I then I'm validated in my understanding of the Dow.

But bad trade is seriously a huge economy crippler. (Also from what I understand) It always seems to be the biggest thing that destroys socialist/communist countries.

08-15-2019, 05:35 PM	#3179 (permalink)
Frownland SOPHIE FOREVER Join Date: Aug 2011 Location: East of the Southern North American West Posts: 35,548	The Dow is a pretty ***ty and archaic reflection of the economy anyways. __________________ Studies show that when a given norm is changed in the face of the unchanging, the remaining contradictions will parallel the truth.* d e a f b o x

08-15-2019, 02:56 PM	#3171 (permalink)
~~jwb~~ Account Disabled Join Date: Jul 2019 Posts: 4,403	I honestly think the president has less to do with the state of the economy than we think. Specific **** you do can hurt the economy yes. And maybe if you're plunging downwards, something like the stimulus can soften the blow. But as for genuine growth... I think that's largely outside their control.