Shark Tank’s Kevin O’Leary claims Democrats should thank Trump for ‘saving’ American economic model
Shark Tank’s Kevin O’Leary has claimed that every Democrat owes Donald Trump a “thank you” for “saving” aspects of the American economic model.
Speaking Fox News during Tuesday night’s election coverage, the investor said Trump “saved entrepreneurship” and foreign investment in the US.
After being asked what US markets would do after a Trump victory, O’Leary said: ‘What has happened here is the system is correcting itself. If you try to break the American model, it will fix itself.”
He added: “He saved entrepreneurship, he saved the whole model of the S&P 500 because they raised taxes [companies at a higher rate] was a very bad idea and it corrected itself.”
The Democratic party had proposed raising the corporate tax from the current 21 percent to 28 percent, while Trump proposed lowering 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.
During Tuesday night’s election coverage on Fox News, the investor claimed that Trump has saved entrepreneurship and foreign investment in the US.
O’Leary celebrated Trump’s victory, saying, “I think people within the Democratic party need to give credit.
“Donald Trump also saved them tonight, because they’re going to have to take this policy with a spatula over the next four years and put it center stage again.and in a sense reset.”
The investor stated that he could now go abroad Geneva, Abu Dhabi and Riyadh – and say the US has corporate taxes of 21 percent and that this will not change under a Trump presidency.
“That’s very important for people like me who are bringing capital back to this country,” he asserted.
He added: ‘It fixed itself. I think that’s why America works. It’s been working for 200 years. If it gets too crazy, it will fix itself.
“Whether you love Trump or hate him, every Democrat owes him a ‘Thank you very much Mr. President.’
Stocks rose on Wednesday after the announcement that Trump would win a second term in the White House.
The S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite all rose to record highs on Wednesday as investor uncertainty surrounding the election eased.
Cryptocurrency Bitcoin also hit a record high and other so-called “Trump trade” stocks, including Trump Media, rose Wednesday morning.
Tesla, whose CEO Elon Musk is a strong supporter of Trump, rose 13 percent in late morning trading, increasing Musk’s wealth by about $15 billion.
Shares in banks, private prisons and gun manufacturers, which are likely to benefit from a Republican presidency, also rose.
But economists have warned that Trump’s economic proposals could reignite inflation.
The stock market rose Wednesday morning on Trump’s victory, with major benchmarks hitting record highs
“Whether you love Trump or 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 guest workers who work for low wages, and pressuring the Fed to cut interest rates.
“When you put them all together, these levers are moving more in an inflationary direction,” said former Republican Senate aide Brian Riedl. The Wall Street Journal last month.
“I am rightly concerned about a worsening of inflation in 2025.”
A study by the nonpartisan Peterson Institute for International Economics found that deporting immigrants would reduce economic output and increase inflation.
Because there are fewer workers available, companies would either have to raise wages, raise prices or accept smaller profits.
A separate study by University of Colorado economists found that for every million illegal 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 can earn more of the jobs currently performed by foreign workers.
But the research shows that migrant workers in sectors such as catering and agriculture often do not compete with native workers.
That means that if they are deported, companies will likely cut production rather than hire more American workers.
“If he does the things he says he will do, he will hit the American economy with a negative supply shock,” Adam Posen, president of the Peterson Institute, told The Wall Street Journal.
“Prices will rise and the economy’s ability to supply goods and services will decline,” he said.