Stock Market Doing Better? Who Controls It?

This morning, as with a few other mornings in the past, I have wondered about the stock market while listening to NPR (National Public Radio). A few questions have lingered over the past year.

1) Who controls it/influences it?

2) Does the stock market actually effect the average person/general economy?

And more recently 3) Why would the stock markets rebound more recently since Trump's election?

I really wanted to know, so I went looking at .org, .edu, and news sites for some information.

First, I found out from the University of California at Santa Cruz, that the top 10% of the wealthy in this country controlled 80.8% of the stocks and mutual funds in 2010.

Chart from University of California at Santa Cruz website.

Here we go again. Progressive that I am, this makes me wonder. If the ones pulling most of the punches with stock market gains and falls are the top 10%, does that actually affect the general population? Or you and me? And how or why?

According to The Mises Institute, prices of goods rise when more money goes into the economy, which is ironic as prices keep rising for goods in the USA but wages are stagnate, so is this true?

Investopedia tries to explain how the stock market effects the general market, but it uses words such as "could" and "may" with no real hard evidence. And most of the evidence listed indicates that "trickle down" economics is how the stock market (or Wall Street) effects the average person. But does "trickle down" economics work? Sure, it sounds nice, if the rich are given tax cuts and help, they will help everyone else out, but does it really happen?

As I looked into all of this, I felt like I was going down a rabbit hole, leading from one question to another.

In researching the question about trickle down economics, I found that Fair Economy and the John F. Kennedy Harvard School of Government both explain how trickle down economics does not work and never really has. Cutting taxes for the most wealthy has not led to job growth or wage growth in the past 50 years.

Even though the stock market went down right after the election, the stock market has rebounded. Based upon the evidence that I have outlined above that describe that the rich have control of the stock market (which does not really directly effect the general economy), they want to get rich, stay rich and not pass it on by hiring more at their companies, keeping their companies in the USA and paying higher wages (which would ironically allow people to spend more, so weird.. sarcasm), or spend more on charities. It just does not happen, they hoard it.

Why did the stock market rebound? Because Trump is a rich fat cat (and ALWAYS has been) who is promising less regulation on industry (heaven forbid they do the right thing on their own, because history shows that is what happens), and nice tax cuts for corporations and the rich (sources: Forbes and NYTimes).

So here we have a rich guy in the presidency who is going to help out all his rich buddies (anyone surprised? If you are, you've been duped). The stock market is controlled by the rich, the corporations are controlled by the rich, and the rich just want to get richer. So where does that leave the rest of us?

Screwed. Welcome to the new United States of America.

 

My Response to Trump's Election

   Can I just start out, that I truly am mournful (still) that Bernie Sanders did not have the opportunity to drive Trump into the ground?

  It has been 3 weeks since the election, and I am still as disturbed and upset about the results as many others are. I am flabbergasted that so many millions of people bought into the lies that Donald Trump wove with hatred, fury and a loud voice.

  That people would still vote for someone who was recorded numerous times (not just the older recording about "grabbing them by the pussy's") as talking down towards and about women!

  That people would vote for someone who is so quick to make statements so void of any factual basis (illegal immigrants are rapists and murderers, for one)!

  That people would vote for someone who MOCKED a disabled reporter!

  Who picked a running partner so repulsive in his beliefs that evolution should not be taught in public schools, that LGBTQ should not be allowed to marry (and even arrested for trying) and anti-Planned Parenthood (even though, please remember that federal money NEVER goes to pay for abortions).

  Yes, I know. I'm a liberal. I did vote for Hillary Clinton, even though I wasn't a huge fan of hers and would have preferred Bernie Sanders. But I did my research and discovered that Hillary was not as bad as Republicans made her out to be.

  Every day I learn about more hate crimes, about the rise of the alt-right/White Supremacy movement that suddenly seems "ok" to talk about?!

  All I will say, in response to Trump's Election is this:
    If you voted for Trump, what the hell were you thinking? Did you really think that he would do anything good for this country when he has NEVER done anything for anyone else other than himself and his family? Did you really think that he would be able to build a wall across terrain that was not suited for a wall, and a Native American reservation where he has NO RIGHT to built anything without their permission? Did you really think that tax cuts for the rich would help the poor (trickle down is debunked, seriously)? Did you really think that Obamacare was so bad (and if so, are you in one of the states which refused to bring it in so have absolutely no experience with it)? Do you really believe it is your right to impose your beliefs on others?!

  I am baffled!

  I am sickened!

  I am truly worried about what the next four years will mean for me and my family, as well as my friends.

  If Trump tries to make any group in this country register themselves, I will also register because that is wrong and discriminatory.

  I will not be quiet, I will not accept his lies. I will not accept him destroying what this country has slowly built over the past 8 and more years with his demagoguery.

  I will explain with facts with any individual who supports Trump why I think they are wrong to do so.

  I will stand for the rights of everyone in this country, not just those of a European background.

  I am an ally and I ALWAYS will be.