Robert Reich Nails How the Health of the Stock Market Does NOT Help Average American

For a very long time, I have watched the numbers go up and down regarding the stock market, and have heard the news and all of the experts talk about how critical it is to have a strong stock market, which they always claim indicates a strong economy.

Here's the thing: in the past four or so decades, we have seen the stock market go up and down. We have seen it sink to record lows in single days - we had some record low days in March - and we also saw some record high in single days, something we also saw in the hard to believe month of March that just ended. And we saw the direction of the stock market more or less just sore and keep soaring, in the eighties, and then in the nineties, and then again in the 2010's,  And again, we saw some incredible lows, like Black Monday and the days which followed in October of 1987, or the Asian Market scare of the late 1990's, the stock market crash and the so-called "Great Recession" of 2008-09, and now, last month, the crashing of the stock market, which also saw bumps back up and down, showing the turbulence of these times.

Yes, for decades now, the stock market has been bouncing radically up and down. There are joyous smiles reporting on great numbers on this or that day, or how this week or month or quarter or even years has been wonderful, or grim faces and voices reporting on poor showings when the numbers fell. And this, we were assured, relates to our lives, with something generally referred to as "the economy." When politicians are riding high, it always seems to be when the stock market is doing well, and when it is not when it is struggling, politicians are usually the ones who are blamed.

Through all of this over the past four decades or so, there has been wage stagnation here in the United States. Unions have been attacked, and benefits have been taken away. More and more Americans are falling into the margins, even falling in between the cracks. The wealth gap is widening, and a majority of Americans are struggling, despite the often great stock numbers, and wonderful headlines meant to assure us that all is indeed well with the economy, based on stock market numbers. 

This past week, for example, the stock market simply seemed to have a record week. Despite the crash last month, everything is booming again with the stock market. At least, it was this week, which seems to be a record week. These numbers have made some headlines.

Yet, in the past three weeks, nearly 17 million Americans have filed for unemployment. The headlines relaying this news have been serious, and somber.

So what gives? After all were we not led to believe that strong stock market numbers were good for the economy? If that is indeed the case, then why is it that when the stock market is enjoying record highs, and corporations and banks are enjoying record-setting - even record shattering - profits, most Americans are still struggling, and clearly not benefiting from these wonderful numbers from Wall Street.

These glaring differences have forced more and more people to question what exactly the relationship is between strong stock market numbers - which again, politicians and others claim are signs of a hugely successful economy - and the real economic concerns of average Americans. Or, what the relationship is between Wall Street and Main Street really is, if you will.

Former United States Secretary of Labor Robert Reich pretty much nailed it in a tweet yesterday. Here is what he wrote:

Robert Reich@RBReich  

More than 16.8 million Americans have lost their jobs in the past three weeks alone.  

Meanwhile, the S&P 500 is on pace to have its best weekly performance since 2008.  

If that doesn't convince you that the stock market is not a reflection of the economy, I don't know what will.

https://twitter.com/RBReich/status/1248348017616228353

Think he nailed it.

Kind of makes you wonder, does it not?

What about you? Anyone else agree? Or perhaps, disagree?

Please feel free to share your opinions, which are always welcome.