We’ve talked about it before: the only way that Bernie Sanders has a chance in this election is if the economy struggles enough for his anti-capitalist message to resonate with voters.
Sanders and his socialist pals are likely licking their chops at today’s latest news. The market plunged on Monday, as fears of the coronavirus and its economic impact hit investors hard.
The Dow was down more than 1000 points at the time of publication, and many stocks were at 52-week lows.
It’s too early to tell if this is a temporary “flight to safety” or the beginning of something bigger. Either way, Trump and his allies need to recognize the danger here.
Corrections are part of the free market system, and absent a mass panic, they are healthy for the economy. But the media has a vested interest in undermining the narrative of a strong Trump economy, and they won’t hesitate to incite fear in the electorate to further the Democrat party agenda. And Sanders will take any help he can get to bash the capitalist system. It’s a playbook that Barack Obama exploited in 2008 during the last crash.
So far, the White House response has been muted. CNBC reports:
“Our initial reaction is that the Dow is still above 28,000 and nobody thought it would even get that high,” a White House official told CNBC’s Eamon Javers. “We understand that the market is reacting to the news of the day, as it should, but the actual economy itself is very strong.”
Let’s hope that Trump has all hands on deck to weather this storm.