During his latest interview with Fox News’ Sean Hannity, President Trump went on a confused rant about the economy, at one point falsely suggesting that stock market gains are helping pay down the national debt.
“I’m so proud of the $5.2 trillion dollars of increase in the stock market,” Trump said, referring to the bull market that began as the economy pulled out of the Great Recession during the months after President Obama took office.
“Now, if you look at the stock market, that’s one element, but then we have many other elements. The country — we took it over, it owed $20 trillion, as you know, the last eight years they borrowed more than it did in the whole history of our country, so they borrowed more than $10 trillion — and yet, we picked up $5.2 trillion in the stock market, possibly picked up the whole things in terms of the first nine months in terms of value.”
“So, you could say in one sense we are really increasing values, and maybe in a sense we are reducing debt,” Trump added, before Hannity quickly moved on to another topic.
But it just doesn’t work like that. As CNBC details, to see why this doesn’t make sense, consider the relationship (or lack thereof) between the stock market and debt during the Obama administration. Between 2009 and 2017, the S&P 500 returned 235 percent while the national debt soared.