It has been four years since the last presidential election in the United States of America in which Mr. Barrack Obama was elected for second times in a row as the 44th US president. The recent presidential election in 2016 has shocked many people in the US and the world. The result of the presidential election has brought a new era in the US and the world. A successful businessman, Mr. Donald Trump won the presidential election to be the 45th US president.
Many people in the US went down to the street to protest the result of the presidential election. They were worried about the promises of Mr. Trump during his presidential campaign. Some minority people in the US were reported getting violence after the presidential election. Other countries were afraid that the economic cooperation with the US will be discontinued. Trade protectionism is believed to negatively affect the global economic growth. Mr. Trump views the trade openness as a threat. He ignores the benefits of trade openness.
Trade can improve the productivity of a firm within the US because a firm should have high productivity to compete with foreign firms and do a trade. Trade can lower the price of the goods and the services in the US because the local price will converge with the global price. Trade can also increase the utility of the consumers in the US due to the variety of goods and services.
How about the reaction of the investors with the result of the presidential election in the US, do they dislike the result? Indeed, every investor has different reaction with the result. Supporters of the Mrs. Clinton, they must dislike with the result. Yet in general, do the investors dislike the result? To answer this question, let we see the movement of three top indexes in the US market, i.e. Nasdaq, Dow Jones, and S&P 500.
Based on the graph of Nasdaq, Dow Jones, and S&P 500 for past 3 months, there was a huge shock after the presidential election. All indexes showed a sharp drop to the lowest point in the past 3 months. Yet this event lasted shortly. Few days after the presidential election, all indexes moved up rapidly. Instead, the increase was higher than 3 months ago. Only S&P 500 showed a negative change, still, the change was not significant. According to the graphs, we can conclude that the investors are optimism that Mr. Trump is able to make America great again.
Due to his background as a businessman, I also believe that Mr. Trump has good managerial skills to make American economic to be great again. However, we ought to emphasize that country is not a firm. A country does not only think about profit. Too much obsession with making America great again will potentially lead to bad policy that can lower the welfare of the US citizen. A country should always think on how to improve the welfare of its citizen. Thus, I will say congratulation Mr. Trump for your victory. I do really hope that you are able to improve the welfare of people in the US, particularly, and in the world, generally. I do not hope that you see a minority people in your country as a threat but your people who should be taken care.
