Posted 4 years ago on Feb. 7, 2018, 8:27 a.m. EST by agkaiser
from Fredericksburg, TX
This content is user submitted and not an official statement
The neoliberal morons who own America and its politicians say high employment is the cause of stock market "slumps." They never heard that perpetual motion is impossible. It's the same with "Mr. Market," who makes money out of thin air. Every balloon must eventually lose such airy value.
OK. It's true that someone who buys a stock from an issue that raises capital to produce material products and services(1) is contributing to the real economy, though there's a strong parasitic element in such investments. But after issue trades are purely parasitic. They take from not add to the value of everything they taint. And yet fools still believe a strong stock market is a good sign and such asset shuffling at a profit contributes to the real growth of anything. Of course economists and philosophers knew all this centuries and even millennia ago. The Chicago school, Austerians, Harvard MBAs and the rest of the fools who own and operate the world have managed to unlearn the sad truth: you still can't make something out of nothing. Ex nihilo nihil fit.
(1) Neither Financial services nor anything else in the FIRE sector are material products or services. Nor are purchases of patent monopolies to jack the price and gouge the public, like the recent pharma frauds and other parasitic ventures that threaten the life of the host economy.
"... the real danger is that the neoliberal model is increasingly under stress, as the consequences of rising inequality and unheard-of low levels of the benefits of growth going to laborers undermines the legitimacy of the system and is producing bad outcomes ranging from political fracture to falling life expectancy and an opioid crisis that is in large measure the result of the collapse of typically rural communities. The last thing the US needed was more transfers to the rich in the form of the Trump tax bill. So while Mr. Market may recover his sunny mood, the foundations of the economy continue to rot...."