Let’s first look at a comparison table
Everyone must pay attention❗️❗️❗️The US stock market has issued a plummeting alarm, because history is repeating itself. Many well-known American investors have recently issued frequent warnings⚠️that the US stock market is facing a major risk, because the United States is likely to experience an economic recession, and it is the economic recession that Trump needs. This view is by no means alarmist. Because there are three sets of key data that can be used to analyze and verify this plunge and the arrival of this recession.
Next, I will get straight to the point. The first set of key data is the 83% policy overlap rate. What is the policy overlap rate? He is talking about the 83% policy overlap between the main policies currently being implemented by Trump and the three-pronged policy implemented by US President Hoover in 1928. Hoover used this fatal three-pronged policy to accelerate the United States into the Great Depression. Let's compare and analyze it.
The first move is the tariff barrier. In 1930, President Hoover raised import tariffs to an average of 40%, which resulted in tariff retaliation from all over the world. The final result was a 66% drop in global trade volume. Now Trump has begun to impose tariffs on us, Canada, Europe and other countries and regions, with the tax rate basically above 25%. He also threatened that if any country dares to retaliate with tariffs, he will continue to raise tariffs. It can be said that he is even more aggressive than Hoover did back then. What consequences will this cause? Everyone can imagine it!
The second policy is the deportation of immigrants. In 1930, Hoover launched the deportation movement, which deported 1.8 million Mexican immigrants, which eventually caused a labor shortage in the entire society. Now Trump's team has also announced the most stringent immigration policy in history, preparing to deport more than 11 million illegal immigrants, which will definitely affect labor-intensive industries and companies that rely on immigrant labor.
The third trick is tax cuts to stimulate ❗️When Hoover was in office, he reduced the corporate tax rate from 14% to 12%, which resulted in a lot of capital flowing into the stock market for speculation. Trump had already cut taxes once during his first term in 2017. At that time, he reduced the corporate income tax from 35% to 20%. After he came back to power this time, he planned to further reduce the corporate income tax from 20% to 15%. At the same time, we have all seen that in the past few years, 37% of the companies in the S&P 500 have used the proceeds from tax cuts for stock repurchases. History is always surprisingly similar. So if we summarize and compare, it is not difficult for us to find that the three-pronged policy of the two presidents is exactly the same, which makes the whole world feel a dangerous signal of history repeating itself📶❗️❗️
