Trump Blames Harris for Stock Market Plunge, Ignites Political Backlash

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ICARO Media Group
Politics
05/08/2024 19h57

Republican presidential nominee Donald Trump has once again targeted Vice President Kamala Harris, this time blaming her for the recent dramatic plunge in the stock market. In a post on his social media platform Truth Social, Trump accused Harris of worsening the market downturn and criticized President Joe Biden's leadership.

The stock market faced a significant drop on Monday amid concerns of a potential recession, partially triggered by a weaker-than-expected jobs report released last Friday. Seizing the opportunity, Trump took to social media to point fingers at Harris, referring to her as "even worse than Crooked Joe." He further claimed that the decline was a direct result of the ineptitude of U.S. leadership.

This accusation follows Trump's previous claims of taking credit for the stock market's record-breaking surge earlier this year. In January, during his term as president, he boasted that the market's success was due to his high polling numbers against Biden. Trump expressed his confidence that investors believed he would secure victory in the presidential race.

However, Moody's chief economist Mark Zandi cautioned against tying a candidate's triumphs or failures to the volatile nature of the stock market. Zandi emphasized that historical political wisdom has discouraged such associations, as market fluctuations can occur independently of policy decisions or leadership effectiveness. Trump's decision to link his campaign to the market's performance is unprecedented and perplexing.

Notably, Trump himself faced significant stock market downturns during his presidency, particularly in March 2020 amid the escalating COVID-19 pandemic. The S&P 500 experienced a steep 12% drop, one of the worst in its history, as concerns over the virus's impact on the United States grew.

Since Biden dropped out of the election in July and endorsed Harris as the Democratic nominee, Trump has lost his polling lead. A recent CBS News/YouGov poll revealed that Harris holds a slim one percentage point advantage over Trump among likely voters. However, this lead falls within the survey's margin of error, demonstrating a highly competitive political landscape.

As Harris gains early momentum in her campaign, Trump aims to tie her candidacy to Biden's track record, which some voters blame for their rising living costs. Trump seeks to spin the recent market downturn and the resulting recession fears as evidence against Harris' economic credentials. Nevertheless, Zandi argues that the market's fluctuations do not necessarily reflect the broader economic decline asserted by Trump. He states that the market could rebound and end the day in positive territory, highlighting that it is still showing positive performance for the year.

In response to Trump's posts, the Harris campaign redirected attention to a recent speech in Atlanta, where the vice president criticized Trump's proposed tax breaks for billionaires and corporations, as well as his intention to dismantle the Affordable Care Act. Harris vowed not to return to a time when insurance companies could deny coverage to individuals with preexisting conditions, emphasizing the need to move forward with progressive policies.

Trump's choice to tie his campaign to the unpredictable stock market has drawn criticism from experts who warn of the political risks associated with such a strategy. With the election campaign intensifying, it remains to be seen how this discourse will resonate with the electorate and impact the race for the presidency.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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