Editorial | Donald Trump should put people before politics
- Many American households and businesses may face financial distress sooner rather than later if the president, focused on re-election, fails to compromise on a proposed US$2.4 trillion Democrat stimulus package
If any evidence were needed that US President Donald Trump’s political fortunes are closely tied to the stock market – leaving aside the Covid-19 factor – it is to be found in his negotiations with congressional Democrats on an economic stimulus package a few weeks before the next election.
The outcome, in the world’s biggest economy, is not just a domestic issue, but globally important, especially for the Asian and European economies.
News of negotiations on an offer by Trump of a US$1.6 trillion package buoyed American markets; news that he had shut them down until “I win [the election]”, after Democrat leader Nancy Pelosi demanded more generous aid for state and local governments, depressed them.
His attempt to shift the blame for failure of the negotiations to the Democrats had misfired.
Further news, in less than a day, that he was prepared to backtrack on his walkout and talk about some elements of the package perked them up again.
