Coming out of the global coronavirus pandemic has helped the American stock market soar, proof positive of American exceptionalism through capitalism, according to former Trump economic adviser Stephen Moore.
"The valuation of the American stock market is five times larger than it is in China," Moore told "The Cats Roundtable" on WABC 770 AM-N.Y. "We have become again the world's economic superpower. Nobody else is really close right now. China is trying to catch up. Europe is way behind.
"It's a tribute to America and our free-enterprise system."
Since the beginning of the Reagan administration, the stock market has enjoyed "an incredible expansion," Moore told host John Catsimatidis.
"This is a 40-year-old market like the world has never seen before," he said. "You go back to the early 1980s and the Dow Jones was at 1,000. Now it's nearly 35,000. Think about that: A 35-times increase in valuation."
Moore does hold some fears, including President Joe Biden's massive spending returning America to the 1970s and the Jimmy Carter administration's inflation, interest rates, energy shortage, and increased taxes.
"What could blow this up? I do worry about too much easy money," Moore said.
"We have to get back to sensible monetary policy to make sure we're not just building up another bubble like we had in 2008."
The housing market is already in "a bit of a bubble right now," according to Moore, who added warnings of the policies of tax-and-spend Democrat leadership.
"I also think we have to fight this tax increase; that's the thing that worries me the most," Moore said, adding "higher capital gains tax, the higher death tax, the higher investment taxes" are all "negative for the stock market and negative for jobs."
Wall Street remains bullish, though, Moore continued, because it does not believe Biden will prove effective in his goals.
"We just need the economy to recover over time, which it is doing big-time," he said. "We don't need more stimulus from the Fed. We don't need more stimulus from the federal government.
"I'm worried that people are getting addicted to these free [federal] checks.
"If we could just make sure that Biden’s most aggressive agenda doesn't happen, I think it will be a continued very nice recovery."
Eric Mack ✉
Eric Mack has been a writer and editor at Newsmax since 2016. He is a 1998 Syracuse University journalism graduate and a New York Press Association award-winning writer.
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