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March 12, 2025

Don’t get panicked by the dramatic stock market drops

By Andrea Widburg

Leftists are celebrating the drop in the stock market over the past few business days because they hope that a recession brings down Trump’s presidency. Conservatives who wish Trump well have the same view of the stock market risk, although they’re worried, not celebratory. I think the conservatives can stop worrying and the leftists can stop celebrating.

I happen to be one of those who believes that the stock market was seriously overvalued because, as happened during the Obama years, the Biden government was printing money like crazy and was churning out policies antithetical to innovation and creation. The best thing to do under those circumstances is to park all that cash in the market.

Trump’s policies aim to reverse that trend, getting the money back into the economy where it can grow. Call it the Dolly Levy economic principle, with individuals (not the government) creating wealth: “Money, pardon the expression, is like manure. It’s not worth a thing unless it's spread around, encouraging young things to grow.”

Image by Grok.

I’m not the only one who thinks that. Charles Gasparino has written what I consider to be a “must read” column regarding Trump’s approach to economic governance and its effect on the stock market. As far as Gasparino is concerned, the stock market has been a junkie getting its fix from all those stimulus checks. Trump isn’t making it go cold turkey, but the weaning process is painful:

Wall Street is puking big-time, and the Sell buttons are working overtime whenever the word “tariff” passes from Donald Trump’s lips. If you listen to the fat cat community long enough, you’d think Trump has been in office four years rather than four weeks, and that a small trade surcharge on a car from Mexico is leading us into economic Armageddon.

I’m no fan of tariffs for lots of reasons — including that I hate paying too much for stuff — but I’ve also taken enough econ and studied markets long enough to know that they’re not the end of the world as we know it. I also know that the Trump economic plan is much more than tariffs; it’s about tax cuts, deleveraging the federal government’s involvement in the private sector and allowing the private sector to thrive.

It’s about unleashing the animal spirits of the US entrepreneur through deregulation.

[snip]

Think of the current US economy as a junkie weaning himself off heroin, which is never easy. It’s been addicted to the heroin of government spending — both monetary and fiscal — for so long that we are running $2 trillion deficits when the economy is growing near 3% with low unemployment as sleepy Joe Biden spent money we didn’t have.

The Trump people tell me Biden injected as much as $250 billion into the economy in his final months to get Kamala Harris elected. Again, markets did well, but inflation remained high throughout his presidency, a tax on the working class. Rich people didn’t care because they can speculate their way around the high price for staples like eggs through stocks and other inflated financial assets.

Yeah, what he said! And there’s much more in the same vein at the link.

When you read the whole thing, you’ll realize that we’re not seeing the American economy collapse; we’re seeing it course correct, which is necessary if the economy is to survive as a viable entity, not a Chinese-style, propped-up economic chimera.

And speaking of eggs, one of the stories the mainstream media is not interested in highlighting is that, on Trump’s watch, egg prices have dropped sharply:

They’re still a luxury item (something I never thought I’d say), but they’re coming back to ground.

And just to put the Biden years in perspective, it turns out that the Biden administration was lying bigtime about the wonders of its economy in 2024. Now that the dust has settled and the real numbers are emerging, it turns out that Biden’s 2024 was a bad economic year for ordinary people, something we all knew, even if the media and the administration kept telling us otherwise:

Here’s the bottom line--tthe Trump economy, after only six weeks, is so good that even CNN has to admit it:

For more on how Trump is turning the economy around, not slowly, like a giant ship, but with the speed of a jet ski bouncing across the waves, check out Monica Showalter’s post about what’s happening with inflation.

Trump was right. For America, under his “America First” approach, the best is yet to come.

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