The Dow hit some new highs last month, but it also was down more than 300 points on the last day of July. Recent polls suggest that economic pessimism remains relatively widespread. And why should it not be? Our national debt is $17.6 trillion and growing. Furthermore, as Jim Geraghty writes in NRO, since 2007 real median household income is down about $5,000 and, according to a study financed by the Russell Sage Foundation, there has been a 36% decline in the inflation-adjusted net worth of the typical household.
So just who is investing in the stock market? It’s a pretty safe bet that it is not the boat-load of Americans out of work or the scads of college students saddled with loans that not so long ago were comparable to a sensible home mortgage. Retirees on fixed incomes? Probably not.
Read here from richardcyoung.com Dan Mitchell’s explanation of how big business is the enemy of capitalism.