By Ben Frederick
A few weeks ago, the global economy fell by large portions overnight. First, the United States dropped, and this caused almost every other country’s stocks to fall. Then it happened a second day and a third. The Dow Jones industrial average dropped by 1,175.21 points on Feb. 5, making it the largest drop in one day in history. This was only one bad day of many for the market.
Many people say that the market was merely correcting itself. With the passing of President Donald Trump’s new tax plan, the market quickly rose to record heights. However, within two months of passing of the tax plan, the market saw a record-breaking high and a record-breaking fall. Economists hope that this will be the end of it and the market will settle, but with Trump’s new plans for this country, they are very fearful.
Trump’s new tax plan will hurt the market in the long run. It decreases corporate tax, decreases the tax on the wealthy and increases the national debt by billions of dollars over the next 10 years. This will only cause the market to fall further as more of the wealth is collected by the upper-class.
Trump believes we should cut the corporate tax percentage from around 35 percent to below 15 percent. Trump believes if America taxes big companies less, their profits will increase and they will pay their employees more. Economists are in agreement that whenever this happens, the company does not share the wealth with the employees. The top people in the company will get raises and bonuses while the rest get an increase in taxes.
When we give all the money to the rich, they don’t share it. America has tried trickle-down economics, and it does not work. The wealth gap will only increase and make life harder for average working Americans. The average American will be hurt by this tax plan and will have to pay more in taxes within the next five years as the wealthy will continue to get tax cuts.
Adding to the problem, the market will crash, hurting the majority of the American population. Under Trump’s vision, he wants to cut the budget for relief programs and any government funded project that helps people in hard times. Without these funds, these programs will be overcrowded and underfunded when times get to their worst.
Trump and his friends will grow richer off the tears of others. The rest of us will suffer as they bask in wealth and prosperity. This cycle will take generations to undo. Trump’s new tax plan has cut the inheritance tax, so now the one percenters can pass their wealth onto their kids without worry.
Trump’s newest idea is to sell off the crumbling infrastructure of America to private companies, so the companies must pay to fix it. After these companies fix the roads and the highways, they will own them and can do with them as they please. However, the only thing they want is to make a profit.
Unfortunately, this comes at the expense of the American people as they will be charged to use these once public roads.
In the end, this new tax plan and Trump’s idea for America will only hurt the market more, and it will kill the American dream.