Accepted Assumptions that are Wrong: A Healthy Stock Market Means a Healthy Economy

[texshelters]

Accepted Assumptions that are Wrong: A Healthy Stock Market Means a Healthy Economy
Read my complete article here: http://texshelters.wordpress.com/2011/03/20/accepted-assumptions-that-are-wrong-a-healthy-stock-market-means-a-healthy-economy/

Nobel prize winning economist Joseph Stiglitz explains the disconnect between the stock market and greater good when he said on Anderson Cooper’s show, “If we give money to the banks, the stocks will go up. That's not what we're concerned about.” http://tpmcafe.talkingpointsmemo.com/2009/02/26/stiglitz_is_correct_dont_bow_to_dow/ Well Mr. Stiglitz, apparently that’s all some people are concerned with. Media talking heads and free market economists see that stocks are doing fine and see a healthy economy. What they ignore is unemployment rates and stagnant wages, increasing poverty and income inequality as well as the increasing number of part time workers that want to work full time.

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There is a myth perpetuated by the purveyors of Wall Street that most people have money in the stock market and that everyone benefits when stocks rise. The fact is, the top 1% own 42% of all financial wealth in the United States. Furthermore, 93% of the financial wealth is held by the wealthiest 10%. http://www.mybudget360.com/top-1-percent-control-42-percent-of-financial-wealth-in-the-us-how-average-americans-are-lured-into-debt-servitude-by-promises-of-mega-wealth/ So, when the stock market increases, the wealthy owners of the major media outlets, where we get a majority of our news, do benefit. And it’s news because the owners and their investors see it as great tidings. For the 15 million or more unemployed in the U.S, it does nothing to bring prosperity.

The stock market is not the answer, only more jobs, public and private, will end this recession.

Peace,
Tex Shelters