If the Economy is So Bad, Why Is the Stock Market Booming?
by John Lawrence, October 3, 2018
The simple answer is that the Fed has printed so much free money that it has nowhere else to go. But all those with 401(k)s sure must be happy. In 2015, about 54 million American workers were active 401(k) participants, and there were nearly 550,000 401(k) plans. If each worker was responsible for a family of 4, that would make approximately 200 million Americans that were covered by 401(k)s or 100 million adults. The American population is 325 million. So about 125 million Americans are not benefiting from the rise in the stock market. However, we could assume that those benefiting from the economy would vote Republican. In the last election approximately 130 million people voted or roughly half the American population. Since the poorest Americans probably don't vote, we would assume that most of the 100 million American adults who are benefiting from the stock market's rise would vote Republican in the upcoming election and would vote for Trump again in 2020. So based on this analysis, Republican voters would be in the majority.
That leaves about 100 million Americans in the lower financial tiers of American society, a substantial number to be sure, but not the majority of voters. As long as the economy is humming along for the majority, their interests will be maintained by Republican elected representatives. Their interests would include all the money that is made from militarism. That includes all the engineer college grads that are employed in the military-industrial complex by the likes of Lockheed Martin, Boeing and Raytheon. It includes all the young people out of high school that take advantage of the military's training, education acquisition of job skills, free health care, world travel and generous pay scales as inductees into the military itself with the option of retirement with benefits in 20 years.
The 100 million Americans not benefiting from the stock market's rise would include all the minimum wage workers working paycheck to paycheck, government workers other than those employed in the military or military-industrial complex, teachers, nurses and care givers. These Americans who would vote Democratic if they voted at all, will see whatever benefits they receive from government diminish as the Republican majority and their elected representatives squeeze that part of government - as well as all public programs and spaces - so small that it can be drowned in a bathtub.
Republican elected representatives and lobbyists cater to the uppermost rungs of society and the people in those rings don't want their taxes being used to support government programs that benefit poor people. So until there is some cataclysm that takes down the majority of the economy, as long as the economy keeps humming along, as long as there is full employment (albeit with a large portion of minimum wage workers), as long as the stock market keeps rising, Michael Moore's contention that American society is majority leftist is hogwash. While it may be majority leftist on cultural matters like abortion and marijuana legalization, it is majority rightist on pocket book issues which trump all other issues.