• tburkhol@lemmy.world
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    15 hours ago

    For small businesses, a president taking power can immediately affect business. Small business owners make decisions based on their expectations of future, colored by their emotional state, so if they believe that a Republican President will be good for business, then they’re more likely to order new machinery, hire an extra person, etc. In an ecosystem of small businesses, that optimism feeds on itself.

    Happens in big business, too. S&P500 gained 3+% the day after election, which (if you don’t believe the daily stock market is just gambling) presumably means that ‘the market’ expects 3% more growth out of all those companies, just by Trump’s win being formalized. Stock price up makes it easier for companies to raise capital to expand, buy out competitors, etc

    Neither of those things is “the economy,” but they can feel like it, if you’re close enough.

    • 14th_cylon@lemm.ee
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      13 hours ago

      S&P500 gained 3+% the day after election

      and considering that index gained 90% over the course of last 5 years and 700% over the last 30, that is a strong indication of… something. probably random variance 😆.

      which (if you don’t believe the daily stock market is just gambling) presumably means

      yeah, that is strong assumption 😂