Dow plunges 2,200 points as tariff ignites global trade wars and rocks Wall Street, a tragic consequence when voters don't learn from mistakes. 

US stocks were battered by a steep sell-off Friday after China retaliated against the United States for President Donald Trump’s tariffs in a tit-for-tat that escalates a global trade war.

 

The Dow plunged by 2,231 points, or 5.5%. The broader S&P 500 was 5.97% lower. The tech-heavy Nasdaq Composite was 5.82% lower.

 

The Nasdaq closed in a bear market for the first time since 2022, down more than 20% from its record high in December.

 

The Dow closed in correction, down more than 10% from its record high in December. It is the first time the Dow has closed in correction since March 7, 2022, according to Sam Stovall, chief investment strategist at CFRA Research. The Dow posted its biggest back-to-back losses since March 2020, during the onset of the Covid-19 pandemic.

 

The S&P 500 shed $5.06 trillion in market value across the past two days, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. The benchmark index, which entered correction Thursday, sank more than 10% over the past two days.

 

Investors have been fearful that a dramatic escalation of a trade war could plunge the US and global economies into a recession. JPMorgan analysts said Thursday that America’s economy and the broader world economy both had a 60% chance of sinking into a recession this year. The analysts also said odds of a recession would rise if countries began to retaliate against the United States — and China did so Friday. Retaliation raises the risk of further escalation and could diminish hopes for negotiation.

 

“Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade,” said Matt Burdett, head of equities at Thornburg Investment Management. “The tariffs have injected a level of uncertainty and volatility we haven’t seen since the early days of the pandemic.”

Consequences of Practicing Blind Loyalty:

 

1. Lack of accountability: Blind loyalty can lead to politicians not being held accountable for their actions or decisions, as their supporters will defend them regardless of any wrongdoing.

 

2. Diminished critical thinking: Blind loyalty discourages followers from questioning the actions or policies of their chosen leaders, leading to a lack of critical thinking and independent judgment.

 

3. Polarization: Blind loyalty can contribute to increased polarization in society, as supporters become entrenched in their views and are less likely to engage in constructive dialogue with those who hold different opinions.

 

4. Corruption: When loyalty to a political figure or party becomes blind, it can create an environment where corruption may go unchecked, as supporters turn a blind eye to unethical behavior.

 

5. Erosion of democracy: In a healthy democracy, it is important for citizens to hold their leaders accountable and participate in informed decision-making. Blind loyalty undermines these principles and can erode the foundations of democracy.

 

It is essential for citizens or voting public to engage critically with politics, question authority, and hold leaders accountable for their actions in order to ensure a healthy and functioning democratic system.

 

Focusing on Policies:

Focusing on policies that elevate the quality of life of citizens and not fooled by schemes and strategies of corrupt politicians is paramount for the well-being of society for several reasons:

 

1. Genuine Progress: Policies aimed at improving the quality of life directly contribute to the well-being and prosperity of citizens. By prioritizing areas such as healthcare, education, employment, and social services, governments can make real and lasting improvements in the lives of their constituents.

 

2. Safeguarding Public Resources: Corrupt politicians often use schemes and strategies to divert public resources for personal gain, leading to inefficiency and inequality. By focusing on policies that benefit citizens, we ensure that resources are used effectively for the common good rather than for individual enrichment.

 

3. Building Trust and Integrity: Prioritizing policies that elevate the quality of life helps build trust between the government and the people. By resisting the temptations of corrupt politicians and focusing on the needs of citizens, leaders demonstrate integrity and a commitment to serving the public interest.

 

4. Sustainable Development: Policies that improve the quality of life contribute to sustainable development by investing in areas that promote long-term growth and stability. By focusing on education, healthcare, infrastructure, and social welfare, societies can build a strong foundation for a prosperous future.

 

5. Empowering Citizens: Prioritizing policies that elevate the quality of life empowers citizens by providing them with essential services, opportunities for advancement, and a higher standard of living. This empowerment enables individuals to actively participate in society, hold leaders accountable, and contribute to the well-being of their communities.

 

In conclusion, focusing on policies that elevate the quality of life of citizens is essential for creating a just, equitable, and thriving society. By remaining vigilant against the schemes of corrupt politicians and advocating for policies that benefit all members of society, we can foster a more prosperous and sustainable future for generations to come.

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