Main Street needs Wall Street. @johntamny @realclearmarkets

May 15, 11:37 PM
Image:  Small town. Public domain

The New York Times reports what's well known, that the 10 percent richest American households account for 84% of all household stock ownership. The well-to-do, precisely because they are, have the most left over after meeting their own consumptive wants and needs. This is important when it's remembered how business journalists aim to create the impression that Wall Street is some "other" concept that moves "money" around. No, Wall Street moves the abstinence of the well-to-do toward businesses looking to expand, entrepreneurs eager to bring an idea to life, and consumers eager to attain now (think housing) what would otherwise take them decades to attain. An innocence about money leads to all sorts of misunderstanding, including the trite view that rapacious Wall Street is separate from the noble commoner on Main. What a laugh.  The opinion piece can be found here.  No one starts a business to "create jobs." It should more realistically be stated that every commercial and technological advance is all about shrinking the amount of labor required to produce more of a good or service. Abundant jobs are a consequence of the relentless destruction of the work of the past. Typically, the non sequitur that is PPP whereby the feds throw money at the political class's economic terrorism gets the truth about jobs backwards. This unwitting tribute to the 1930s pays businesses to employ workers at all costs. This just means that once the hideous lockdowns end, businesses long on labor they don't need will either perish with a high employee count, or lay off what's superfluous in a cruel new world invariably created by inept politicians led by experts who think market signals are low rent. The half awake understand that government cannot stimulate. Its interventions can only distort and shrink. The only answer is an end to the lockdowns. The opinion piece can be found here. |   |