CNBC host Jim Cramer, known mainly for being wrong about nearly everything, with X (formerly Twitter) loving joking about how the inverse of what he says seemingly always being the accurate prediction. But he might have finally been correct about something, as he said on Monday, August 5 that the stock market meltdown shows that Americans who care about their pocketbook and personal finances ought to vote for President Trump.
As background, the Japanese Nikkei index fell dramatically after a Japanese surprise rate hike of 0.25%, dragging down American indexes with them. The Dow Jones Industrial Average (DJIA) closed down 2.6% Monday, while the S&P 500 index dropped by 3%, and the NASDAQ fell by 3.43%. Adding to the selloff were fears of a recession and a disappointing jobs report that came out on Friday, August 2.
Cramer, reacting to the news and speaking about business people in the Trump and Biden Administrations, said, “I know Tony. He’s what I regard as a business person. There was no business person really that close to Biden, except for Gina Raimondo, so this is a nice change of paces.”
Continuing, he noted that people who worry about American markets and their own personal finances are Trump voters, saying, “A lot of business people surrounding Harris. If you’re — if you’re in the stock market, if you care about your paycheck, you go with — you go with Trump, if that’s what you do.”
Chiming in, fellow CNBC host David H. Faber asked, “You do?” Cramer, in response, noted that the Trump tax cuts will impact the markets positively, saying, “Yeah, well, he wants to cut your taxes.” Faber tried pushing back on that, noting that Trump’s State and Local Tax (SALT) deduction limits hurt him.
Making that point, Faber said, “My taxes got raised enormously, as you know, under the last Trump administration.” Cramer somewhat missed the point of Faber’s response, but pushed back by referring to the fact that Trump intends on further cutting taxes, saying, “Well, no, he wants to cut taxes.”
Watch them here:
The 2024 GOP platform indicates that Trump intends on cutting taxes further. The second platform item of “Chapter 1,” for example, provides, “Republicans will make permanent the provisions of the Trump Tax Cuts and Jobs Act that doubled the standard deduction, expanded the Child Tax Credit, and spurred Economic Growth for all Americans. We will eliminate Taxes on Tips for millions of Restaurant and Hospitality Workers, and pursue additional Tax Cuts.”
Another part of the document, Chapter 4, provides that Trump intends on using tax incentives to make housing more affordable. That part of the platform plank provides, “To help new home buyers, Republicans will reduce mortgage rates by slashing Inflation, open limited portions of Federal Lands to allow for new home construction, promote homeownership through Tax Incentives and support for first-time buyers, and cut unnecessary Regulations that raise housing costs.”
It also provides that tax incentives will be used to make elderly care more affordable, saying, “Republicans will shift resources back to at-home Senior Care, overturn disincentives that lead to Care Worker shortages, and support unpaid Family Caregivers through Tax Credits and reduced red tape.”
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