The 2016 US presidential election has themes of socioeconomic inequality, financial and tax reform, and the controversial histories of candidates. In particular, the relationship between finance and Republican candidate Donald Trump is of interest. A clear history of his rise to fame and wealth is necessary for the public to understand Trump as a figure.
Donald Trump embodies the New York values of ambition and cunning. He was born in the New York City neighborhood of Queens in 1946. As a teenager, he attended the New York Military Academy, Fordham University, and the Wharton School, where he graduated from in 1968 with an Economics degree. During his college years, he began to work at his father's private real estate company. His biggest early deal was restoration of the Swifton Village complex. In 1971 Trump took control of the company and renamed it The Trump Organization. After Trump turned his focus to Manhattan, his major project was construction of the Grand Hyatt Hotel in 1978. In 1983 the development of the 58-story Trump Tower was completed. From the 1980s onward, Trump has focused on hotels, casinos, and golf courses and resorts, including Atlantic City's Trump Plaza and Taj Mahal Casino, Florida's Mar-a-Lago, Manhattan's Trump World Tower and Plaza Hotel, and Scotland's Menie Estate and Turnberry Hotel. Though Trump has never declared personal bankruptcy, businesses that he owned have filed for Chapter 11 bankruptcy protection four times. Trump did not work in finance with his Wharton degree, but his real estate empire is literally rooted in downtown Manhattan near Wall Street. In that regard, Donald Trump is as close to New York and Wall Street as a candidate can be.
Another point of contention with Trump and finance is his net worth. The controversy is currently fueled by Trump's decision not to release his tax returns in accordance with political custom. Trump asserted that his net worth was $8.7 billion in June 2015, but others disagree. Forbes believes that his current net worth is $4.5 billion, at number 324 in a list of the world's billionaires. Bloomberg's "Trump Is Richer in Property and Deeper in Debt in New Valuation" argues that Trump's net worth is only $3 billion. The discrepancy is due to the methodology used in appraisal of real estate properties and the value of Trump's personal brand. Another controversial point is how much Trump pays in income taxes in a given year. According to the New York Times article "How Much Does Donald Trump Pay in Taxes? It Could Be Zero," many real estate and tax experts believe Trump paid zero taxes for years due to the nature of real estate tax breaks. The answer could hurt him politically; we the public will not know the truth until Trump releases tax returns.
Democratic candidate Hillary Clinton is a friend of Wall Street. But Trump has his own support team of Wall Street characters. New York Mag's "Meet the Wall Street Titans Who Back Trump" names hedge fund manager John Paulson, investors Carl Icahn and Wilbur Ross, and former Goldman Sachs (NYSE: GS) executive Steve Mnuchin, among others. Regardless of how strongly Wall Street supports Hillary, Trump cannot claim to be a true populist.
The author does not hold any positions in any of the stocks above.