Are the good stock market and economic figures a true reflection of the economy?
The reports seem to be very positive,and the stock market is at record highs, yet the middle class doesn't seem to be along for the ride.
Answer:
There are many indicators. The Dow is only one. The other stock market indicators still have not caught up to their March 2000 highs, and aren't even that close.
There's also GDP, unemployment, tax revenues, etc., which have been positive.
Remember the dot.com bubble, and then the burst? In the mid to late 90s, wages for all went up at unsustainable levels, due to the severe labor shortage when unemployment was even lower than today's 4.4% (which is a very good rate). I remember the company I was working for was paying a fortune in wages to people who qualified because they had a pulse.
When the bubble burst, the unemployment rate shot up, and company's stopped paying the unrealistically high wages. Then we took an additional hit to the economy due to 9/11.
Now since 2003, the economy has been growing, the labor market tightening, and all income levels are gaining ground again. The poorest started gaining ground in 2004, while everyone else started gaining ground in 2005.
Please see the census bureau statistics linked to below. Even after inflation is factored in, all income groups have more spending power in 2005.. Another thing to notice is that all income groups (including the rich) gained or lost ground together thoughout the bubble and then the burst, and then the recovery.
No
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Answer:
There are many indicators. The Dow is only one. The other stock market indicators still have not caught up to their March 2000 highs, and aren't even that close.
There's also GDP, unemployment, tax revenues, etc., which have been positive.
Remember the dot.com bubble, and then the burst? In the mid to late 90s, wages for all went up at unsustainable levels, due to the severe labor shortage when unemployment was even lower than today's 4.4% (which is a very good rate). I remember the company I was working for was paying a fortune in wages to people who qualified because they had a pulse.
When the bubble burst, the unemployment rate shot up, and company's stopped paying the unrealistically high wages. Then we took an additional hit to the economy due to 9/11.
Now since 2003, the economy has been growing, the labor market tightening, and all income levels are gaining ground again. The poorest started gaining ground in 2004, while everyone else started gaining ground in 2005.
Please see the census bureau statistics linked to below. Even after inflation is factored in, all income groups have more spending power in 2005.. Another thing to notice is that all income groups (including the rich) gained or lost ground together thoughout the bubble and then the burst, and then the recovery.
No
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