Welcome Friends to another wolf response I want to call this one the Trump slump not my invention of a clever phrase it's already circulating in the financial press both of the United States and around the world after all the economy particularly after the stock market downturns of March 10 and 11 the stock market is suggesting what other indices are also suggesting that the American economy is in trouble and may be in very serious trouble and when investors particularly big ones get a whiff of that kind of thinking they start getting really nervous that it might
be time to get rid of the stocks before they tank and enough of them felt that way on March 10th and 11th that they gave the stock market a real shock of a downturn what I want to do here is explain three of the major reasons why the stock market crashed the way it did and why the whole situation deserves the name the Trump slump first of all crashes downturns the capitalist economy is highly unstable according to the National Bureau of economic research capitalist economies in this country and around the world turn down every four
to seven months excuse me years on average every four to seven years we have what can be called a crisis a crash a downturn a bump a bust a obession a depression I mean there's all kinds of language because we can't get rid of this cyclical disease that capitalism has it's had it for 300 years it's had it despite all kinds of efforts to get rid of it the capitalists are scared that every four to seven years on average millions of people suddenly lose their job tens of thousands of in uh Enterprises go belly up
it's really bad and some of them are terrible the Great Depression of the 1930s the so-called Great Recession of 2008 and n and even the last one we had in the year 2020 to which we gave the name the covid crash which was a bad one shows that we have not gotten rid of this disease it's very present and why is that important because last week the Federal Reserve Bank in Atlanta Georgia issued a report saying that its economic team believ that in the United States we would have a recession in the year 2025 this
year that our economy would drop 2% maybe three that's a trillion dollars worth of output we won't see because people are unemployed and businesses are Belly Up wow and then president Trump was asked on a television interview show on Sunday the 9th whether he could rule out a recession and he said he could not well that was all the investors needed to hear and they started bailing Monday morning 9:30 when the stock market opened and leading the pack big Tech and that's an interesting phenomena because that's usually considered one of the most profitable one of
the most productive industrial sectors still left in the US economy but their stocks Lost In some cases the most so the instability of capitalism the fact that we're due for a recession because if the last one was in 2020 and we get one on average every four to seven years well 2025 is five years from the last one 2020 in other words right on schedule and Mr Trump is not responsible for it but Mr Trump is not going to escape it apparently either this is a part of the system that Mr Trump is committed to
preserve so I guess we get the cycles and they deserve then the name the Trump slump but there's another reason two more in fact that I want to go over with you to put this stock market down turn in perspective Mr Trump has been an extreme ex L Herky jerky on again off again Economic Policy maker one day we're hitting uh Canada and Mexico with tariffs the next day we aren't two days later we're raising them then we're exempting some industries from them for a while maybe till the end of the month maybe long we're
going to hit Europe with steel and aluminum to who knows no company who's got say a factory in Mexico or Canada is gonna make the decision and spend the big bucks moving a a factory from that part of the world into the United States because there's a tariff because he doesn't know or she doesn't know whether the Tariff will be there next week next month next year and you don't want to go to all that expense if what you're going to be doing is is discovering you made a big mistake because Mr Herky jerky Trump
can't figure out what he's going to do or when he's going to do it or for how long it's going to last veterans on Wall Street will tell you worse than an economic downturn is an uncertain economic set of prospects because then the investors don't make a move they sit and when they sit they don't hire people they don't buy materials they don't open factories they don't do all that which keeps the economy going and so people are very worried we are going to have Herky jerky president for a while in economics and that's going
to make every big player hesitate and we're all going to suffer a recession because of it and there's one more aspect of our economic situation that's playing a role here it's one American leaders don't like to face don't like to talk about try to deny which only makes it worse it's the fact that the American Empire is declining as I have mentioned before we lost the war in Vietnam we lost the war in Afghanistan we lost the war in Iraq and we're losing the one in Ukraine that's the reality we can't do what we used
to be able to do for much of the postor War II period when the United States was the overwhelmingly dominant economic political military power we aren't anymore there simply is no way to fake it the People's Republic of China has not only equaled us it has bested us and it continues to do so it's growing two to three times faster than the United States and has been for the last 30 years without interruption including right to this minute China and its allies the bricks are a larger economic unit than the United States and its G7
allies the United States and the G7 used to be the dominant economic power in the world they aren't anymore China and the bricks are already bigger and the gap between them is getting larger and that's Weighing on investors not just American investors but all of the foreigners who invest in the stock market in the United States they've been doing that for 75 years because the United States was the center of this great Empire greater in it way than the British Empire that it replaced nobody else has 700 military bases around the world nobody else comes
close but we are not what we were we are in Decline and the growing economic power is somewhere else and that sits in the mind of all stock market investors worried how bad is that going to get how long long is it going to take how deep will the decline go am I at risk in holding stocks and the answer they re they reach is yep I am and if I see the first sign of a panic I'm gonna get out before the next guy and that's what happened Monday and even if it comes back
a little or for a while everything I just mentioned that went into the downturn sits there and it didn't go away and it's not about to and Mr Trump isn't doing anything anywhere at this point to change that and maybe he'll come in with big tax cuts for business and the rich hoping that by flooding them with money it will trickle down well I got news for him most of the trickle down prospects never pan out it doesn't trickle down it stays up there with the rich and the powerful who work overtime to keep it
there and that's likely to happen here too we are in times of big uncertainty big change and big decline the Trump slump is likely to last if in PH excuse me if interventions like this strike you as useful please share them with your friends your co-workers your family that's why we make these videos and if you can help defay the costs please know that by going to our website www democracy atwork.org thank you
