Podcast Summary: The Michael Knowles Show – Ep. 1709: "The Stock Market Is Crashing — and Americans Love It"

Release Date: April 7, 2025
Host: Michael Knowles
Publisher: The Daily Wire
Episode Title: The Stock Market Is Crashing — and Americans Love It
Duration: Approximately 23 minutes

1. Introduction and Episode Overview

In episode 1709 of The Michael Knowles Show, host Michael Knowles delves into the alarming global stock market downturn and its paradoxical effect on American public sentiment, particularly favoring President Trump’s policies. The episode explores the disconnect between the economic realities portrayed by mainstream media and the actual perceptions of the American populace, highlighting how President Trump's tariff implementations, despite tanking the markets, have bolstered his approval ratings.

2. Stock Market Downturn Amid Tariffs

Michael Knowles opens the discussion by outlining the severe global stock market decline. He cites staggering figures such as the Dow Futures posting back-to-back losses exceeding 1,500 points, the S&P 500 dropping by 6% on a single Friday, and the Nasdaq entering a bear market. Despite these downturns, Knowles points out an unexpected political boon for President Trump:

Michael Knowles [00:45]: "When Trump implemented the tariffs that tanked the market, his public approval rating went up."

This sets the stage for exploring why, contrary to expert consensus, Trump's approval ratings surged in the wake of policies that ostensibly harmed the market.

3. Public Approval Rating vs. Market Performance

Knowles presents data from JL Partners indicating a 4-point increase in Trump's approval rating—from 49% to 53%—during the week tariffs were announced, despite the economic turmoil these tariffs caused. Notably, this approval spike included significant gains among traditionally Democratic and younger voters:

• Young Voters (18-29): Up by 13 points
• Democrats and Independents: Approval increased by 6 points
• Black Voters: Approval soared by 17 points

Furthermore, public opinion on the tariffs themselves leans slightly in favor:

Michael Knowles [03:25]: "More people support the tariffs than oppose the tariffs. They’re 39% support, 37% oppose."

Knowles emphasizes the chasm between the "chattering class" of economists and pundits and the broader American public, who remain largely indifferent to stock market fluctuations due to the intangible nature of such investments for the average person.

4. Dialogue with Scott Besant, Treasury Secretary

At [06:19], Scott Besant, Treasury Secretary, engages in a discussion with Knowles about the rationale behind Trump's tariff policies. Besant likens the tariffs to medicine, acknowledging that while the economic pain is significant, it is intended to rectify long-standing issues of trade imbalances and job outsourcing:

Scott Besant [06:20]: "The tariffs are like medicine... Harsh, but necessary to fix the economic ailments caused by previous administrations."

Knowles challenges Besant by comparing the current economic strategy to President Reagan's approach in the early 1980s, suggesting that while the intention may be to stabilize the economy, the implementation might be misaligned with the political goals, especially with the looming midterm elections.

5. Political Strategy and Midterm Implications

Knowles analyzes the potential long-term political ramifications of Trump's tariff strategy, considering the upcoming midterm elections. He posits that, similar to Reagan's strategy, Trump may be banking on enduring short-term economic pain to secure long-term political gains. However, he expresses concern that if the economy continues to decline into a recession, it could negatively impact Republican performance at the polls:

Michael Knowles [14:32]: "The midterm election season is about to start... The markets most likely will not have recovered. We very likely could be in a recession, and that will clobber Republicans at the ballot box."

This segment underscores the precarious balance Trump faces between maintaining his approval among his base and managing broader economic fallout.

6. Critique of Democratic Strategies and Media Narratives

Knowles critiques the Democratic Party's response to the economic downturn and Trump's tariffs, highlighting hypocrisy and inconsistent messaging. He references a Democratic Congressman’s video:

Chris D'Aluzio [19:43]: "The President's tariff announcement... has been chaotic. We need meaningful industrial policies and pro-worker policies."

Knowles points out that while Democrats criticize Trump’s tariffs publicly, their acknowledgment of the underlying issues aligns with Trump's narrative, inadvertently validating his policies:

Michael Knowles [20:42]: "Even while the Democrats are taking advantage to pummel Trump... they're admitting that Trump is right in principle."

He argues that this duality weakens the Democrats' stance and may further bolster Trump’s support among voters who recognize the systemic issues being addressed by the tariffs.

7. Russell Brand's Rape Charges

The episode shifts focus to high-profile legal cases, prominently featuring British celebrity Russell Brand, who has been charged with multiple counts of rape and assault dating back 20 to 26 years. Brand, who denies the allegations, addresses the accusations by attributing his past behavior to addiction and personal transformation:

Russell Brand [30:43]: "I was a drug addict, a sex addict, and an imbecile. But what I never was was a rapist."

Knowles expresses skepticism regarding the timing and validity of the charges, introducing his "Knowles rule of forensics":

Michael Knowles [31:50]: "For every year that passes between an alleged crime and a formal allegation, skepticism should increase by 5 percentage points."

He concludes that the delayed nature of the allegations warrants significant skepticism, aligning Brand's case with other politically motivated accusations.

8. Analysis of Social Decorum and Public Criticism

Knowles transitions to discuss societal norms and the erosion of decorum, using the reaction to Jeff Metcalf's response to his son's murder as a case study. Metcalf's decision to publicly forgive his son's attacker attracted widespread criticism, which Knowles attributes to declining societal standards influenced by social media:

Michael Knowles [25:12]: "We can have a little class, folks. You know, we can have a little decorum."

He laments the lack of compassion and understanding in public discourse, emphasizing the importance of maintaining respect and restraint, especially in the face of personal tragedy.

9. Concluding Remarks and Final Thoughts

In wrapping up the episode, Knowles reiterates his main thesis: despite severe economic downturns, President Trump's policies resonate with a significant portion of the American public who prioritize social solidarity and disdain perceived elite exploitation. He criticizes Democratic strategies as ineffective and misaligned with the needs of average Americans, predicting that Trump's approval will continue to rise unless significant economic hardships alter public perception.

Michael Knowles [22:48]: "Most Americans here are saying, nah, you know, we want a country, actually, we want social solidarity."

Knowles concludes by reinforcing the notion that the American public is more aligned with Trump's approach, despite the economic challenges, and remains skeptical of the Democratic Party's ability to effectively counter these sentiments in upcoming elections.

Key Takeaways

• Economic vs. Political Sentiment: The episode highlights a significant disconnect between economic indicators and public approval, suggesting that voters prioritize political narratives and perceived protection against elite exploitation over tangible economic performance.

• Trump’s Tariff Strategy: Despite causing market instability, Trump's tariff policies have garnered increased approval, particularly among demographics traditionally opposed to him, signaling a shift in political allegiance based on underlying economic discontent.

• Democratic Response: The Democratic Party's inconsistent messaging and critique of Trump’s policies may inadvertently validate his strategies, weakening their own stance and further consolidating Trump’s support base.

• Celebrity Legal Cases and Societal Norms: The discussion on Russell Brand's charges and Jeff Metcalf's handling of personal tragedy underscores broader themes of legal skepticism and the erosion of societal decorum in public discourse.

Notable Quotes with Attribution and Timestamps

• Michael Knowles [00:45]: "When Trump implemented the tariffs that tanked the market, his public approval rating went up."

• Scott Besant [06:20]: "The tariffs are like medicine... Harsh, but necessary to fix the economic ailments caused by previous administrations."

• Chris D'Aluzio [19:43]: "We need meaningful industrial policies and pro-worker policies."

• Russell Brand [30:43]: "I was a drug addict, a sex addict, and an imbecile. But what I never was was a rapist."

• Michael Knowles [31:50]: "For every year that passes between an alleged crime and a formal allegation, skepticism should increase by 5 percentage points."

Conclusion

Episode 1709 of The Michael Knowles Show provides a comprehensive analysis of the current economic crisis juxtaposed with rising political approval for President Trump. Through detailed discussion and critical examination of both economic policies and societal reactions, Knowles articulates a narrative that challenges mainstream perceptions and underscores the complexities of public sentiment amid financial turmoil.