By Daily Mail (U.S.) | Created at 2024-11-07 04:11:56 | Updated at 2024-11-07 06:32:02
2 hours ago
Shark Tank's Kevin O'Leary has claimed every Democrat owes Donald Trump a 'thank you' for 'saving' aspects of the American economic model.
Speaking on Fox News during Tuesday night's election coverage, the investor said Trump 'saved entrepreneurship' and overseas investment in the US.
After being asked about what the US markets would do following a Trump victory, O'Leary said: 'What's happened here is the system self-corrected. When you try and break the American model, it fixes itself.'
He added: 'He saved entrepreneurship, he saved the entire model of the S&P 500 because taxing [companies at a higher rate] was a really bad idea and it self-corrected.'
The Democrat party had proposed boosting the corporate tax rate to 28 percent, from its current 21 percent, whereas Trump proposed cutting it to 15 percent.
It comes as economists from across the political spectrum have warned that Trump's economic proposals will trigger a new surge in inflation.
Speaking on Fox News during Tuesday night's election coverage, the investor claimed Trump 'saved entrepreneurship' and overseas investment in the US
Celebrating the Trump win, O'Leary said: 'I think people should give credit within the Democratic party.
'Donald Trump saved them tonight too because they're going to have to take a spatula to these policies and bring it back to the center over the next four years and in a way reset.'
The investor declared that he would now be able to go abroad - to Geneva, Abu Dhabi and Riyadh - and say that the US has corporate taxes of 21 percent and that is not going to change under a Trump presidency.
'That is very important for people like me that bring capital back to this country,' he claimed.
He added: 'It fixed itself. I think that's why America works. It has worked for 200 years. When it gets too crazy, it fixes itself.
'Whether you love Trump or you hate him, every Democrat owes him a "Thank you very much Mr. President."'
Stocks jumped Wednesday following the announcement of Trump winning a second term in the White House.
The S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite all jumped to record highs Wednesday, as investors' uncertainty around the election was alleviated.
Cryptocurrency Bitcoin also hit a record high and other so-called 'Trump trade' stocks, including Trump Media, were up Wednesday morning.
Tesla, whose CEO Elon Musk is a strong backer of Trump, rose 13 percent in late morning trading, boosting Musk’s wealth by roughly $15 billion.
Stocks in banks, private prisons and gun manufacturers, which are likely to benefit from a Republican presidency, also jumped.
But economists have warned that Trump's economic proposals could reignite inflation.
The stock market soared Wednesday morning off the back of Trump's win, with major benchmarks hitting record highs
'Whether you love Trump or you hate him, every Democrat owes him a "Thank you very much Mr. President,"' O'Leary said
His ideas include imposing sweeping tariffs on imports, deporting immigrant workers who work for low wages, and pressuring the Fed to cut interest rates.
'Put them all together, these levers are moving more in an inflationary direction,' Brian Riedl, a former Republican Senate aide, told The Wall Street Journal last month.
'I'm legitimately worried about inflation worsening in 2025.'
A study from the nonpartisan Peterson Institute for International Economics said that deporting immigrants would reduce economic output and increase the rate of inflation.
With fewer workers available, businesses would have to either raise wages, hike prices, or accept slimmer profits.
A separate study by economists at the University of Colorado found that for every one million unauthorized workers expelled from the US, 88,000 American workers lost their jobs during the Bush and Obama administrations.
Supporters of Trump's immigration proposals say the economy will be better off if Americans are able to earn more doing jobs which are currently being carried out by foreign workers.
But the research found that immigrant workers in industries including hospitality and agriculture often do not compete with native-born workers.
That means if they are expelled from the country, the businesses are likely to scale back production rather than hire more US workers.
'If he does the things he says he's going to do, straight up, he will be hitting the US economy with a negative supply shock,' Adam Posen, president of the Peterson Institute, told The Wall Street Journal.
'Prices will go up, and the capacity of the economy to supply goods and services will go down,' he said.
