As of Friday, February 2nd the Dow Jones has gone down 666 points, an economic decline hasn't been this severe since the 2008 market crash. The Dow Jones is the economic status of the 30 major companies in the United States. The condition of these companies usually determines the wellbeing of the entire economy. And as of late the Dow Jones, or the Dow 30, has reached an all time high of 26,000 points, which has been linked to Republican efforts to give life to the economy through tax relief. But, because of this sharp incline since the start of the Trump presidency, wages have risen too fast. Because of this it leads to inflation and eventually big businesses and companies see their profits decline as they spend more money on the workforce. Recent political events concerning the FBI and Republicans have also been speculated to be the cause of this decline, but many experts say it’s not relevant. However many stock experts say that a decline in the stock market is required to stop the economy from "overheating" and burning itself out. In conclusion, at the moment there is no cause for concern but it is something that we should check from time to time.
Are you concerned that this decrease will impact you in some way, and if so how does it worry you?
My Answer - As of right now the situation is rather new so not much can be pridicted. However, I am concerned that if it gets worse that many in big companies will suffer.
Do you think the increase in the Dow Jones prior to the decline is due to Republican tax cuts or another source?
My Answer - I do think the tax cuts have greatly helped the ecodomy, and for the most part are responsible for the incline.
Replies
Well done Jesse!
I am a little bit but however I dont know a whole lot about stocks and I honestly dont even know what Dow Jones is. I think that big companyies will suffer from the decrease in stocks. I think that it will because people get money back for doing there taxs and thats like an extra bonus most people go out and spend it on themselves with a new gadget.
As of right now the Dow Jones (The stock or value of the 30 most influential companies in the United States) has stabalized and is slowly crawling up, it was a rocky week but the drops most likely are behind us.
I am concerned with this decrease, though at this point in my life I don't think that it would affect me directly. To be completly honest I'm not sure how the Dow Jones rose so high. I would assume that this is due to the Republican tax cuts but there's really no way to know. If it is due to the taxs cuts why is it declining? The tax bill is still in effect so the Dow Jones still should be climbing.
Some economic experts say that the Dow Jones can burn out if it increases to fastly. So that may be the cause of the decline, or the fact that wages have risen too fast and have caused inflation which can impact companies some. We'll see the result soon enough either good or bad.
1) Yes I am very concernd becaus those are very big ompanies and if this gets any worse than that could be bad for us.
2)Yes I agree I do think that the taxes haven't helped much at all.
Since the election of Trump the Dow Jones has done nothing but increased so I believe that Trump's efforts are the cause of the incline. But, if there is another source it must be very hard to detect.
I am somewhat concerned with this, since it dropped even more yesterday. This could really make things harder for companies and for us to but things. I think it could be because of Reppublican cuts.. it was at an all-time high at the beginning of the school year and it was bound to drop at some point, but no probably expected it to go down this much.
As of right now they shut down the Dow Jones in hopes to improve or stabilize. THis is cause for concern, but compared to other crashes in history this crash is relatively small, so if its stops soon we'll still be in good shape.
It currently does not impact me. There is not much information out, so my answer can always change. Many of the companies part of the Dow 30 are common comapanies, some people need access to everyday. I agree the tax cuts ahve creatly helped the economy, but they might not completly responsible for the incline. Any information we have though in new.
-
1
-
2
-
3
-
4
-
5
of 6 Next