Every weekday, it seems to happen: The Dow Jones Industrial Average, widely embraced as the ultimate indicator of the overall health of the economy, take some kind of hit, then the bankers, financial analysts, and Republicans get in front of a camera and blame President Obama for it.
It must seem simplistic to even a casual observer of the market, but it has caught on as a narrative with the mainstream media. And given the number of albatrosses that are being allowed to hang around the neck of The Dow, it bodes the question: Is this widely accepted benchmark of the economy being held down for political gain?
The components of the Dow have been changed dozens of times since it's inception, in order to better reflect the active components of the American economy. As recently as 2004, Eastman Kodak was a component, but was removed as photography shifted to digital and the company failed to innovate.
On September 18th, 2008, AIG was replaced with Kraft Foods one week after being bailed out by the federal government. To this date, the Dow continues to list four companies which have also received bailout money: Citibank, Bank of America, General Motors, and General Electric. Subsequently, their stocks have dragged down to the point where they are effectively worthless. And yet, The Dow insists on keeping them as components.
Common sense would dictate that it is time to remove these so-called zombies, and replace them with companies that represent future growth. Google, Amazon.com, and Costco are three companies that immediately come to mind, as each represents leadership and development in their respective industries.
So it bodes the question: Why is Dow Jones intentionally weighing itself down with companies that are on the verge of obsolescence?
It should be immediately pointed out that Dow Jones is yet another holding of Rupert Murdoch's News Corporation, and is also the publisher of The Wall Street Journal, which has grown increasingly critical of President Obama's economic policies. The erosion of The Dow has provided a continuous source of hucksters like Rick Santelli, as well as continuous speculation within the financial industry (and conservative circles) that Obama's "socialistic" agenda is purposefully killing the economy.
When you look at the players that are involved, it could just as easily be argued that The Dow is intentionally dragging itself down in order to support the pro-corporate and anti-worker agenda of it's board members, all the while providing talking points for Fox News and corporate interests that stand to lose big if President Obama's economic agenda succeeds.
It's another fine example of the kind of resistance corporate America is going to apply as we work towards rebuilding this economy to provide a better life and better opportunities for working-class Americans, as well as small and medum-sized businesses.