Another Illustration Of American Inequity

Today’s article is another one about inequity in which I’ll make an economic argument. To most, economics is a boring topic so perhaps it is good that today’s writing will be among my shorter.

As I read Wednesday morning’s papers one of the articles was Paul Krugman’s New York Times op-ed entitled, A Sentimental View of the Stock Market. If this topic interests you I suggest you read it. The main point is that in part because of the great news from the markets more voters have a positive view of the economy.

Many political junkies were concerned that the truth of the great economic news was not getting through to enough voters. I wasn’t among them. The election is a long way off and most persuadable and motivateable voters are a long way from paying attention yet.
Consumer confidence surveys are showing increased optimism. That doesn’t surprise me in the least. The leading indicator was holiday spending. Americans wouldn’t have spent all that money on gifts and entertainment if they were afraid of their short-term economic prospects.

Dr. Krugman wrote of the inordinate emphasis Americans put on the markets when judging the economy. The fact that stuck me is that based on 2022 Fed numbers; the average American household directly or indirectly had $500,000 in the markets while the median American family had only $52,000 or basically 10% of the average. Most voters will never be aware of this and if they are in most cases they will not be able to process it. This is a glaring illustration of the concentration of wealth at the top in America.

Barring an unexpected event fear not the incorrect economic gloom being a factor in the 2024 election. Generally, the truth, much like justice, eventually prevails. That has to have Donald Trump soiling his tighty whities.

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