A listener to my show asked me two questions regarding Trump’s tariffs.
First, why should he care about the stock market dropping? He added that, like the majority of the middle and lower class, he had no stocks whatsoever.
Second, I previously stated that if President Trump laid out exactly what his goals were with the tariffs, his strategy might work. The listener asked how that could be true since Trump would be telling everyone he was basically bluffing, thereby losing all leverage.
To begin with, 62% of Americans own stocks in some way, shape, or form. You may not be in the stock market or own stocks at all. The truth is, however, that there has never been a time in American history where there was a massive drop in the stock market that did not have a spillover effect on Main Street.
Why?
Because one of the ways that capital markets work is the issuing of new stock. If you can’t…
