Why the Market Crash? Downgrade or Threat of Tax Increase?
Thursday, August 4: Senate votes to pass House bill that will raise taxes. Dow Jones Industrial Average loses 513.
Friday, August 5: Standard & Poor’s downgrades U.S. sovereign debt from AAA to AA+. Dow Jones Industrial Average gains 61.
Monday, August 8: President Obama repeats threat to raise taxes as a part of a “balanced” plan to reduce the national debt. Dow Jones Industrial Average loses 635.
Jim Johnston (email@example.com) is an economic advisor to The Heartland Institute.