After the election, liberals predicted the end of the world. One specific prediction from some liberals was that the stock market would never recover. Paul Krugman of the New York Times was particularly gloom and doom about the economy.
Here’s what he wrote back in November:
The Economic Fallout
It really does now look like President Donald J. Trump, and markets are plunging. When might we expect them to recover?
Frankly, I find it hard to care much, even though this is my specialty. The disaster for America and the world has so many aspects that the economic ramifications are way down my list of things to fear.
Still, I guess people want an answer: If the question is when markets will recover, a first-pass answer is never.
Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news. What makes it especially bad right now, however, is the fundamentally fragile state much of the world is still in, eight years after the great financial crisis.
It’s true that we’ve been adding jobs at a pretty good pace and are quite close to full employment. But we’ve been doing O.K. only thanks to extremely low interest rates. There’s nothing wrong with that per se. But what if something bad happens and the economy needs a boost? The Fed and its counterparts abroad basically have very little room for further rate cuts, and therefore very little ability to respond to adverse events.
He couldn’t have been more wrong. Just look at this tweet from FOX Business:
Markets since election: pic.twitter.com/lkBZzX2A2b
— FOX Business (@FoxBusiness) June 19, 2017
Nothing is working out as the left had hoped.