Large investors challenge Apple’s indifference about iPhone harm to kids January 8, 2018 By Everitt Mann Leave a Comment I have to admit I never thought I’d see the day when two large investors – only one of them representing teachers in reliably left-leaning California – would pressure a ma...
At 25,000 the Dow Jones Industrial average is through the roof. But it is just one economic indicator of many.
And its meaning is very different than it used to be.
Back when America was great, the fortunes of the largest corporations reliably filtered down through the rest of the economy - through hiring, wage and benefit increases, tax payments, increased purchasing, etc. when the DOW was doing well we were all doing well. They shared their wealth and what was good for them was good for the rest of us.
Today, the same class of corporations do whatever they can to keep their good fortunes in their pockets. Stock buybacks; overseas tax shelters; lobbying to suppress wages and benefits, regulatory rollbacks on environmental, safety and consumer protections; competition-killing mergers; and in extreme cases (Wells Fargo comes to mind) outright corruption, fraud and theft.
They withhold their wealth from the rest of the economy, and save for the value of 401k’s and IRAs, what’s good for them is now harmful to the rest of us.
The Dow is soaring because the environment for the Corporate 1% has never been better. It’s become a measure not of how well the economy is working but of how easily the economy is being dominated by the very companies that have funded the nation’s descent into tribal warfare.
The good gains to your retirement savings are indeed a silver lining - of a very large, dark cloud.