If you’ve been watching the stock market and wondering why things feel shaky, you’re not alone. A lot of people are feeling uneasy right now. Prices are up, businesses are making changes, and the news keeps throwing around words like “market correction” and “recession.” But before you panic, let’s break this down in a way that makes sense.
Right now, Trump is working on shifting the economy away from government dependence and back to private businesses. That sounds good in theory, but in practice, it means undoing a lot of bad policies that kept things propped up artificially. And when you take away those crutches, there’s going to be a period where things feel unstable before they truly start to heal.
Why Is This Happening?
Think of the economy like a house that was built on a shaky foundation. Under Biden, the government was pumping trillions of dollars into the economy through stimulus checks, government contracts, and expanded welfare programs. This kept things afloat, but it also hid some serious structural problems—kind of like putting a fresh coat of paint on a house with a rotting foundation.
Now, Trump is coming in and saying, we can’t keep propping this up with government money. We need to let the private sector take over. That’s the right move long-term, but short-term? It’s going to cause some pain.
What Does "Deleveraging" Mean?
That’s a fancy way of saying the government is pulling back its involvement in the economy. Over the past few years, the government has been spending money like crazy, handing out loans, printing cash, and keeping certain industries afloat that probably shouldn’t be.
Now, that’s stopping. Trump is cutting unnecessary government jobs, ending wasteful spending, and letting businesses sink or swim on their own. That’s how a real economy works, but it’s also why things feel uncertain right now.
Why The Stock Market Might Look Bad (For Now)
A lot of businesses got used to easy money—cheap loans, government contracts, and safety nets that made it easier to take risks. Now that those things are being pulled back, some businesses will struggle. The stock market reacts to uncertainty, and right now, investors don’t like that they can’t count on government money to bail everything out.
But here’s the thing: that money was never real wealth. It was borrowed, printed, and inflated into the economy in ways that couldn’t last forever. The market isn’t crashing because of Trump’s policies—it’s correcting itself after years of artificial support.
What Trump Is Doing to Fix It
Cutting Government Waste – The federal government got too big. Trump is freezing hiring, cutting unnecessary programs, and making sure taxpayer money isn’t wasted on bloated bureaucracy.
Deregulation – Businesses were drowning in government red tape. He’s rolling back regulations so companies can operate more efficiently, which will help create jobs in the private sector.
Lowering Taxes – Businesses and individuals are going to keep more of their money, which means more investment, more hiring, and more economic growth in the long run.
Encouraging Private Investment – Instead of the government funding everything, Trump is creating incentives for private businesses to invest in infrastructure, manufacturing, and energy.
Reducing Welfare Dependency – The best way to fix the economy isn’t through bigger welfare checks—it’s through more jobs. Trump is making sure government programs help people get back to work instead of keeping them dependent on handouts.
Fixing Trade – Bad trade deals and reliance on foreign manufacturing weakened America’s economy. Trump is pushing for fairer trade and more domestic production.
How Long Will the Pain Last?
That depends. The economy isn’t going to collapse, but it is going through a necessary reset. Some businesses that relied too much on government help might fail. The stock market might be bumpy. Interest rates might stay high for a while. But once things stabilize, the economy will be stronger than it was before.
Think of it like ripping off a Band-Aid. It hurts at first, but in the long run, the wound heals properly. If we kept doing things the way Biden did—borrowing money, inflating the economy, and throwing cash at problems—the pain would have come later, but it would have been much worse.
Bottom Line
Trump’s plan is about long-term health, not short-term comfort. It’s going to feel rough for a while, but it’s necessary to fix the damage caused by reckless spending and overregulation. The government can’t be the driver of the economy forever—businesses and workers need to take back control.
If you’re feeling uneasy, remember this: short-term pain leads to long-term stability. The economy isn’t crashing—it’s adjusting. And once the dust settles, America will be in a much stronger position than before.
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Yes it’s a simply great explanation. People do feel uneasy and we have an over reactive stock market. The plan seems to be for the best long term. Time will tell but everyone needs to take a deep breath. We got to this point because of big government and too much spending. It won’t correct quickly. 😮💨🧘
People over... IDK, 55? 50? 60? have been hearing about the collapse of social security for all their lives. So it should not be a surprise to them that the current economy is a cluster****.
We were either going to get a war and bad economy (Democrats) or a bad economy and maybe war (Republicans.) There was no way out. Europe is in even worse shape.
Martin Armstrong has some pretty interesting views on this. Highly recommend.
Yes it’s a simply great explanation. People do feel uneasy and we have an over reactive stock market. The plan seems to be for the best long term. Time will tell but everyone needs to take a deep breath. We got to this point because of big government and too much spending. It won’t correct quickly. 😮💨🧘
People over... IDK, 55? 50? 60? have been hearing about the collapse of social security for all their lives. So it should not be a surprise to them that the current economy is a cluster****.
We were either going to get a war and bad economy (Democrats) or a bad economy and maybe war (Republicans.) There was no way out. Europe is in even worse shape.
Martin Armstrong has some pretty interesting views on this. Highly recommend.