At a recent segment on CNBC’s “Mad Money,” host Jim Cramer delved into the market’s reaction to the significant political shake-up that saw Joe Biden drop out of the 2024 presidential election race. According to Cramer, Vice President Kamala Harris, now the almost certain Democratic nominee, represents a promising figure for global business and market stability.
Market Dynamics: Mega vs. MAGA
Cramer opened his segment by highlighting the immediate market response to Biden’s withdrawal, noting the distinct contrast between Harris’s pro-business stance and the protectionist policies of Donald Trump. “From the stock market’s perspective, the selections have become Mega versus MAGA,” he stated, emphasizing that Wall Street is keenly evaluating the implications of this shift. The tech-heavy NASDAQ’s significant rise of 1.58% following the news indicates a preference for Harris’s approach.
Harris and Big Business
One of Cramer’s central points was Harris’s favorable stance toward big business, particularly in the technology sector. He asserted, “I think Harris would be way better for big business than Biden, and certainly better than Trump.” Cramer argued that Harris’s deep understanding and support for globalization could prove beneficial for major corporations, particularly those in Silicon Valley.
Historical Context and Harris’s Pro-Business Ethos
Cramer provided a historical context, explaining how Trump’s protectionist policies have overshadowed traditional Republicans who supported free markets. “Old free market Republicans have been obliterated,” he noted, contrasting this with Harris’s sophisticated understanding of global business dynamics. According to Cramer, Harris’s background as an elected official from California, a state synonymous with technological innovation, positions her as a knowledgeable and supportive ally for the tech industry.
The Influence of Tony West
A notable insight from Cramer was the influence of Kamala Harris’s brother-in-law, Tony West. West, the current general counsel of Uber and former general counsel of PepsiCo, brings a wealth of experience in both the tech and corporate sectors. “Through the help of West, who I hope would be a close adviser, there could be a conversation between the people who run these companies and the President of the United States,” Cramer suggested, indicating a potential bridge between big business and the White House under Harris.
Regulatory Environment
Cramer also highlighted the differences in regulatory attitudes between Biden and Harris. While Biden has adopted a more adversarial stance towards big business, particularly through agencies like the Federal Trade Commission and the Antitrust Division, Cramer believes Harris would adopt a more nuanced approach. “Biden’s agencies seem to believe big business is bad business. From what I’m hearing, Harris has a more nuanced approach,” he stated.
Globalization and International Relations
According to Cramer, Harris’s belief in globalization aligns with the views held by many business leaders prior to Trump’s presidency. This approach contrasts sharply with Trump’s policies, which often included tariffs and protectionist measures. “In Trump’s world, Taiwan stole our semiconductor manufacturing jobs, so now it should pay a price for the protection of U.S. military,” Cramer explained. He suggested that Harris, like the current Commerce Secretary, would recognize Taiwan as a friend and focus on strengthening ties while simultaneously boosting domestic manufacturing.
Business-Friendly Policies
In summing up his perspective, Cramer expressed optimism about Harris’s potential presidency for investors and businesses. He argued that Harris’s understanding of and relationship with the business community would create a more favorable environment for investment and growth. “If you’re looking to invest in tech, you want a world where tech has a voice in Washington, not slashed vocal cords under Trump or mute under Biden,” he concluded.
“Words I Never Heard Her Say”
People in the comments shared their thoughts: “Millions of Americans are paying a tax on their labor in direct violation of the United States Constitution, and you are worried about big business? What.”
Another commenter added: “He is putting words in her mouth that I have never heard her say.”
One person concluded: “So what you’re saying is, and your opinion, we have to wait and see which party is going to promise the most of our money to big business, before we know who’s gonna be the winner. Yeah, because they both in bed with the corporate power structure”
Market Optimism
Cramer’s analysis points to a sense of market optimism regarding Harris’s potential presidency. He believes her pro-business stance and understanding of globalization make her a preferable candidate for investors compared to both Trump and Biden. This perspective, he argued, is reflected in the recent market rally, suggesting that Wall Street may be gearing up for a more business-friendly administration.
Impact on American Jobs
What do you think? How might Harris’s approach to globalization impact American jobs and domestic manufacturing? What specific policies could Harris implement to balance support for big business with the needs of smaller enterprises? How will the influence of advisers like Tony West shape Harris’s economic and regulatory policies?
See the full video on CNBC television’s YouTube channel for more details here.
