US stock markets have been performing extremely well in recent months, breaking records and showing no signs of calming down. However, the real question is: are the stock indices a sign of the country’s overall economic health or utterly detached from it, operating in a self-serving bubble?
According to Charles Passy, superb stock performance does not indicate a better economy.
“Wages have basically kept pace with inflation since late 2007. But on the other, unemployment and underemployment have affected overall household income – to the point that there’s been about a 6% dip to the current median figure of $51,320 after adjusting for inflation, according to Sentier Research, which tracks income.”
Indeed, president Obama’s recent speeches have focused on the seemingly steadfast recovery of the US economy, but in reality, such proclamations are nothing but political tomfoolery.