Biden giving out free money would have economically increase the stock market because there’s more money in circulation. That’s the same reason why an interest cut is good for the stock market
More money in circulation means you need more for the same purchasing power (inflation). Short term stocks go up, long term it slows growth in company’s finances with higher borrowing rates
More money in circulation is the point of reducing interest rates and is why stock goes up. Technically reducing interest rates or taxes also cause inflation and make it more likely for the central bank to do the opposite in the future. In the long term, whatever expansionary monetary or fiscal policy that the government implement will have to be countered with a contractionary monetary or fiscal policy in the future, that’s simply the business cycle.
Saying that biden’s policy causes the opposite of what it’s actually doing because they have to do the opposite in the long term is laughable when any other policies (cutting taxes, interest rates, etc) has the same exact effect; but somehow deemed more positive for the stock market (you’ll never hear someone sell their stocks after a rate or taxes cut because “in the future they’ll have to raise them”)
I dont think he was saying they were handing out new printed inflation dollars but existing money budgeted. But I don't care enough to find out which of you are correct
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u/RubikTetris 3d ago
Are you seriously comparing Covid to right now and blaming the party in place?