Skip to main content

View Diary: Markets and Politics (w/ the coolest Poll eva!) (13 comments)

Comment Preferences

  •  Better for markets not necessarily better (0+ / 0-)

    for the people...

    Just a thought.

    Good policy is good politics

    by AZ Independent on Mon Oct 11, 2010 at 10:06:04 AM PDT

    •  Worse markets are worse for the people.... (0+ / 0-)

      Just a fact.

      Better markets result in a "wealth effect" as demonstrated by the markets and consumer spending during 1999 and early 2000. This is not trickle down economics. Many middle-class consumers have investments in the stock market. Many 401k and 403b accounts are invested in the stock and bond markets.

      How amny remember the Super Bowl ad in 2000 with the patient being rushed to surgery because he had "money coming out the Wazoo"?

      The example of the markets during the Bush administration and the impact on consumer spending and the economy reinforces the positive example of 1999.

      Watch this space: subject to change.

      by sustainable on Mon Oct 11, 2010 at 10:14:41 AM PDT

      [ Parent ]

      •  Which people? (2+ / 0-)
        Recommended by:
        sustainable, AZ Independent

        Job growth, rising wages, they mean that not all productivity increases are going to capital, those are bad for "the markets", so I say screw the markets, I'll take job growth and wage increases over a 15,000 Dow any day.

        As far as the "many middle-class consumers" (and aren't we all consumers instead of citizens now) with "market investments" in the overwhelming majority of cases they are IRAs or 401(k)s with less than a year's income of the individual as the principal, in other words, just a glorified back account, only one that can lose its value.

        American business is about maximizing shareholder value. You basically don't want workers. ~Allen Sinai

        by ActivistGuy on Mon Oct 11, 2010 at 11:58:34 AM PDT

        [ Parent ]

        •  Love your sig. (0+ / 0-)

          Markets themselves are one thing. The stock market and the current business attitude of the U.S. aren't conducive to job creation, and job creation and middle class income growth is very loosely tied to market performance, if at all.

          Good policy is good politics

          by AZ Independent on Mon Oct 11, 2010 at 12:20:08 PM PDT

          [ Parent ]

        •  How does the economy sustain job and wage growth? (0+ / 0-)

          I disagree with your point that job growth and rising wages are "bad for the markets". Henry Ford, when he wasn't busy being anti-semetic, was progressive in the wages he paid his workers. His example in paying more than double the prevailing wage showed that contented, industrious workers were a competitive advantage.

          Rising wages are part of a virtuous cycle with increased productivity, improved sales, and higher market share prices. This is a macro-economic effect, not something that an individual company can impose on the market as a whole. Higher production levels cannot succeed without higher sales. The Ford Motor Company example succeeded in the roaring 20's, before the Depression set in.

          As far as, "screw the markets, I'll take job growth and wage increases over a 15,000 Dow any day," these two trends reinforce each other- they are not mutually exclusive. You cannot have sustainable rising wages without an improved economy and improved markets. This is why weekly hours, weekly jobless claims, and the S&P 500 are 3 of 10 factors in the Index of Leading Economic Indicators (see midway down the page- Investopedia Link to Conference Board Description of "10 Components" of ILEI)

          Thank you for the thoughtful comment.

          Watch this space: subject to change.

          by sustainable on Mon Oct 11, 2010 at 12:40:18 PM PDT

          [ Parent ]

        •  Witch People. Is that a Christine O'Donnel joke? (0+ / 0-)

          I mean, really. -snark

          Watch this space: subject to change.

          by sustainable on Mon Oct 11, 2010 at 05:32:42 PM PDT

          [ Parent ]

Subscribe or Donate to support Daily Kos.

  • Recommended (142)
  • Community (70)
  • Civil Rights (26)
  • Memorial Day (26)
  • Elections (26)
  • Environment (26)
  • Culture (25)
  • Media (25)
  • Law (24)
  • Science (23)
  • Trans-Pacific Partnership (22)
  • Labor (21)
  • Josh Duggar (20)
  • Economy (20)
  • Rescued (19)
  • Marriage Equality (18)
  • Education (17)
  • Republicans (17)
  • Ireland (17)
  • Climate Change (17)
  • Click here for the mobile view of the site