Why does the Stock Market improve when Democrats are in control of the government? Why does the Stock Market decline when Republicans are in control of the government?
This is my opinion based on the Axioms of Economics.
When Republicans are in control money tends to be concentrated into the hands of fewer and fewer individuals. This slows money velocity (movement of money through the hands of the citizens.) This gives people the sense of less money in circulation. With a slower money velocity (money circulating slower) the Stock Market declines.
When Democrats are in control money tends to be less concentrated in the hands of a few individuals. There is more money in circulation for the general population. This increases money velocity (money circulating faster) the stock market improves.
The demand for commodities, trades, goods and services is directly related to the money velocity in a society. With increased money velocity, sales of commodities, trades, goods and services increase. The stock market does better. This results in increased prosperity for the greatest number of people.
With decreased money velocity, sales of commodities, trades, goods and services decrease. The stock market declines. This results in recessions.
Producer Rewarded Open Market Economics
The Science of Economics
Feb. 19, 2017
By RP Obrigewitsch
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Axioms of Economics
Constant Money Supply
Money Velocity and Prosperity
- 1.0 Money Velocity and Prosperity
- 1.1 The Money Velocity Cycle
- 1.2 Capital Producing Economics
- 1.3 Vampire Economics
- 1.4 The Goal of a Society
- 1.5 Production Efficiency
- 1.6 Why Money Velocity Slows
- 1.7 Capital Destroying Economics
- 1.8 Producer, Non-producer or Counter-producer
- 1.9 Razor Thin Path
- 2.0 Stock Market
Open Market Economics
Producer Rewarded Economics
- 1. What is money?
- 1.1 What is a Product?
- 1.2 The Four Basic Laws of Economics
- 1.3 Who are the Producers?
- 1.4 All Producers are Workers
- 1.5 Workers and Producers Create Money
- 1.6 Government Products and Services
- 1.7 Non-productive & Counter-productive Activities
- 1.8 Work, Energy and Money
- 1.9 Production Creates Futures
- 1.95 Producers, Non-producers and Counter-producers
- 2.0 Attention and Money
- 2.01 Attention Vacuum and Producers
- 2.02 Attention Vacuum and Producers
- 2.1 Banks Don’t Create Money
- 2.2 Capitalism Without Rules
- 2.4 True Wealth!
- 2.5 True Wealth! Part 1
- 2.6 True Wealth! Part 2
- 2.7 True Wealth! Part 3
- 3.0 Socialism
- 3.1 Political Economic Systems
- 3.2 Producers, Non-producers and Counter-producers
- 3.3 Overt and Hidden Socialism
- 3.4 Capital Destroying; Capitalism and Socialism
- 3.5 Economics is a Group Activity
- 3.6 Capital Producing Capitalism and Capital Producing Socialism
- 3.7 Private Forms of Socialism
- 3.8 Capitalist Socialist Economics
- 3.9 Government Socialism
- 4.0 Types of Socialism
- 4.1 Interfacing in Groups
- 4.2 Correlated Pay
- 4.3 System of Measuring Production
- 4.4 Systems of Pay
- 4.5 State of Action
- 4.6 Capital Destroying Capitalism
- 4.7 Capital Destroying Socialism
- 4.8 Use of the Word Capital
- 4.9 Producer Rewarded Open Market Economics
- 5.0 Prosperity Thrusts
- 5.1 Pure Capitalism
- 5.2 Right Wing Socialism
- 5.21 Three Types of Capitalism
- 5.3 Left Wing Socialism
- 5.4 Foundation Socialism
- 5.9 Deus ex Machina