Why Do False Predictions About a Stock Market Crash Persist Post-Biden Victory?

During the election cycle, several figures and media outlets made sensational claims about the stock market's fate if Joe Biden were to win. These predictions were rooted in political motivations rather than economic realities, a narrative that persisted thanks to the repetition by right-wing media personalities like Tucker Carlson, Sean Hannity, and Laura Ingraham.

Trump's False Claims and Their Impact

Donald Trump, ever the master of spectacle and misinformation, fueled these fears by making fear-mongering statements that were designed to frighten people who were gullible enough to believe anything he said. Despite these claims, the stock market actually saw an upward trend, directly contradicting Trump's predictions. This stark contrast between the anticipated and the actual outcome led to a stark revelation about the underpinnings of such false prophecies.

The Impact of Misleading Information

These claims persist because there are individuals or groups who either lack a basic understanding of the economic mechanisms at play or who have vested interests in maintaining a particular political status quo. Their goal is to spread misinformation, often through fear and lies, to influence public opinion and political outcomes.

The Repeated Pattern Through History

The pattern of claiming a stock market crash with every Democratic victory is a recurring phenomenon. Yet, history shows that this feared outcome rarely materializes. Instead, the economy often thrives under Democratic administrations, as evidenced by the stock market's rise upon Biden's projected win.

The Role of Propaganda and Emotional Appeal

These false claims are often propagated through the use of emotional appeal and fear tactics rather than rational analysis. Propagandists like the figures mentioned earlier exploit the human tendency to believe information that aligns with our preconceived biases and fears. They ignore the evidence and the actual behavior of the market, focusing instead on instilling doubt and fear.

The Actual Reason Behind the Market's Performance

The stock market's performance is influenced by a myriad of factors, including fiscal policies, corporate earnings, and global economic trends. The rise of the Dow to over 30,000 points post-Biden victory cannot be solely attributed to Trump's influence. Instead, it reflects the broader economic confidence in stability and growth, as investors anticipate a more predictable and less politically volatile environment under a Democratic administration.

It is important to critically assess the information being presented to us, especially during election cycles, to avoid being swayed by emotional rhetoric and false promises. A stable and well-informed electorate plays a crucial role in ensuring a fair and accurate reflection of the public's will, not just in elections but also in the broader economic and social spheres.