Donald Trump once wondered aloud if he might become the first person to make money running for president. He made rather brazen attempts to fulfill the prediction. But his candidacy has been a downright disaster for the hotels and resorts that bear his gilded surname. Bookings there are down 59 percent since 2015, according to the travel company Hipmunk. Trump Hotels CEO Eric Danzinger announced that the newest hotels will junk the Trump name entirely. The company has settled on “Scion” to rebrand its new line of luxury hotels aimed at Millennials, who are overwhelmingly opposed to his campaign.
Trump isn’t just bad for his business. He’s not even just a danger to the U.S. economy. Investors around the world think that a President Trump would be disastrous for global markets. And now, there is hard data to prove it, thanks to two clever economists and one debate meltdown.
The first presidential debate between Trump and Hillary Clinton was the most watched debate in American history. According to instant polls, it was a trouncing. Clinton beat Trump by 35 percentage points, the third-largest margin in a post-debate poll since 1992.
According to a new paper by Justin Wolfers, an economist at the University of Michigan, and Eric Zitzewitz, an economist at Dartmouth College, Clinton’s victory triggered the financial equivalent of a worldwide happy dance. Soon after the debate ended, stock markets celebrated the news of Trump’s loss. Markets in the U.S., U.K., and Asia soared, the price of crude oil rose, and the currencies of America’s closest trading partners, such as Mexico and Canada, ticked up as well. It was “the most consequential single event (so far!) during the 2016 general election campaign,” they wrote.