Thursday, 19 July, 2018

Trump Makes Puzzling Claim That Stock Market Gains Have Reduced The Debt

Former White House strategist Steve Bannon takes part in an interview with host Sean Hannity on the set of Fox News Channel's “Hannity” in New York on Monday. AP Trump Makes Puzzling Claim That Stock Market Gains Have Reduced The Debt
Melinda Barton | 13 October, 2017, 05:01

Economic policy: he tried to connect the surge in the stock market since his election to the growing federal debt, which recently passed $20 trillion. And yet we picked up $5.2 trillion just in the stock market.

"Russia was an excuse used by the Democrats when they lost the election", the USA leader said in an interview with Fox News. And maybe in a sense, we're reducing debt.

If the GOP wants to be on the right side of history, they will distance themselves from Trump immediately and starting putting country ahead of party. "We're very honored by it". "And we're very, very happy with what's happening on Wall Street".

A White House spokeswoman did not immediately respond to CNBC's request for additional information about the president's comments. "That means more money in the pocket of everyday citizens, and more circulating in our economy as a whole", the official argued.

"For evidence that the two metrics have little to no bearing on one another, look no further than the eight years of the Obama presidency: Between 2009 and 2017, the S&P 500 returned 235 percent while the national debt soared", CNBC's Christina Wilkie writes. Like families, nations accrue debt when they spend more money than they take in.

"A rise in the stock market does absolutely nothing to reduce the national debt directly", Kenneth Rogoff, a Harvard economics professor and former chief economist at the International Monetary Fund, told Fortune.

The national debt, which he correctly states is $20 trillion, is the result of the government spending more than it takes in. If the USA funds expansions of education or infrastructure that allows for better and more economic activity, then it's money not just well spent, but as Trump would say, in a sense reducing debt.

Also, more or less accurate - $9 trillion to be exact.

It is "one of the oldest traditions in the Army, which dates back to the Revolutionary War", according to the U.S. Army website. An analysis of Bloomberg data between November 8, 2016 and October 11, 2017, shows that the S&P 500 market cap increased by $3.5 trillion, from $19.2 trillion to $22.7 trillion.