No. of Recommendations: 7
My portfolio has not had a down month since Trump was elected. The last down month was October 2016, a really bad month when all the experts were convinced that Trump could not possibly win. It took three months to reverse the October loss.

The market might not be efficient but it "knows something!" Monster Beverage Corp. (MNST) is one of the biggest tax cut winners. MNST was up 4.6% over the election weekend and it is up 59.5% since the Friday before the election. A five year chart

Production might be the result of labor but it is capital that enables the higher level of productivity and efficiency. The business of business is to replace the low efficiency of manual labor with the higher output of labor saving tools and devices which are paid for with accumulated capital (or debt). Taxation reduces capital and reduces the rate of progress accordingly.

Capital has an apparent dark side, the substitution of labor with machines, or so it seems at first sight. One solution is to hobble the machines with taxation. What is not seen is that productivity and efficiency are deflationary, for the same dollar the worker can buy more goods and services. What is seen is the uneven distribution of wealth, the productive rich keep getting richer than the laboring classes because capital is more efficient than labor.

We have alternatives, to kill the goose that lays the golden eggs by high levels of taxation, wealth transfer, and redistribution or to get everyone to save to build up productive capital. The first seems the easier solution but it is destructive in the long run.

Social programs like Social Security should put emphasis on the accumulation of capital for the workers instead of just being tools of redistribution. By not allowing Social Security funds to accumulate and to generate dividends the legislature is shortchanging the contributing workers in the long run.

The government has the same problem as the destitute, it lives from hand to mouth! You can't get rich if you don't accumulate capital.

Denny Schlesinger
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