The impact of government economic and monetary policies, such as taxes, interest rates, regulations, and tariffs, plays a critical role in shaping the economy and influencing stock market growth. For instance, low taxes for individuals and businesses can boost investment, innovation, and expansion, including increased hiring. This, in turn, creates more job opportunities and puts more disposable income into consumers’ hands, which can be reinvested into the economy.

Tariffs are another tool the government uses to influence the economy. By imposing higher tariffs on imported goods, the government raises the cost of these products, thereby providing a competitive advantage to domestic companies that can offer similar goods at lower prices, potentially boosting local industries.

Government regulations also have a significant impact on economic growth. While regulations can protect consumers and ensure safety, excessive or overly restrictive rules can hinder businesses from expanding or innovating, limiting their ability to grow sustainably.

Interest rates, set by central banks such as the Federal Reserve in the U.S. and the Bank of Canada, also affect the economy. High interest rates raise borrowing costs, making it more difficult for businesses to access capital and slowing down expansion. Conversely, low interest rates can stimulate economic growth by making borrowing cheaper, encouraging investment and business expansion. However, if kept too low for too long, they can lead to inflation or unsustainable growth.

**Trump’s Economic Promises for the Election**

• End inflation and make America affordable again
• Make America dominant energy producers in the world 
• Stop outsourcing and turn the U.S to a manufacturing superpower
• Large Tax cut for workers
• Reduce regulations 
• Tariffs for foreign made goods 
• Keep U.S dollars as the world reserve currency 

Here are the economic promises of Trump’s next Presidency agenda to make America great again: 

Trump policies: The Fundamentals  

Now that we’ve gained a deeper understanding of how the President can influence the economy through his policies, it’s clear to see how these policies can shape economic outcomes. No wonder Wall Street and many investors are optimistic about Trump’s second term, set to begin in January 2025. This optimism is shared by prominent retail investors such as Cathie Wood, Dan Ives, Kevin O’Leary, and others. As of this writing, the stock market is soaring, and the crypto market is on fire, with Bitcoin approaching $100K. The current trends speak for themselves, hinting at what may unfold in the next four years.

Reflecting on Trump’s first presidency, we witnessed significant economic growth and the stock market reaching all-time highs. You may have heard the saying, “Trump is good with the stock market.” I strongly believe that a second term for Trump, especially with Elon Musk—one of the greatest business minds of our time—having a role in his administration, could lead to a promising year for investors. However, it’s important to recognize that the market may experience high volatility. Staying focused on your investment strategy and taking profits when appropriate will be essential for safe investing.

I am bullish on Tesla and Trump Media stock, but especially on Musk’s Tesla. I believe that with the combined influence of Trump and Musk, they wouldn’t let anything happen to their ‘babies’ (businesses).

The stock market offers the potential for high returns, but it also involves substantial risk. Consult a financial advisor to assess your risk tolerance.

Sources

Platform | Donald J. Trump For President 2024. (2024). Donaldjtrump.com. https://www.donaldjtrump.com/platform

Nasdaq. (2023). What Does the Fed Do and How Does it Impact the Stock Market?Nasdaq.com. https://www.nasdaq.com/articles/what-does-the-fed-do-and-how-does-it-impact-the-stock-market

‌

• Finance
• News