Many have wondered how the stock market continued to soar in the midst of a global pandemic in which millions of people were out of work due to government mandated shutdowns. The rise of the stock market during the Coronavirus caused people to question as to whether the stock market was really an accurate gauge of economic growth.
Clearly the economic shutdown greatly increased the wealth of many corporations who greatly benefited by government shutdown of unessential businesses especially restaurants and small business entities.That makes us wonder if the stock market is really that alienated from reality or does it only reflect the reality of its largest stockholders? So which corporations benefited the most in all this? Amazon, Apple, Google, Facebook, and Wal Mart because the United States government designated them essential entities whose closure would tank the economy despite the fact the system already tanked the system by its mandatory lock downs!
Notice these same corporations donated millions of dollars to Black Lives Matter after the lock downs were lifted. This was not the first time that Capitalism financed Communism (and Black Lives Matter is a Marxist organization) as many banks (Kohn Loeb being one) and wealthy individuals such as Armand Hammer founder of Arm & Hammer Baking Soda.
The stock market cares only about the fortunes of major corporations and not mom and pop operations or small business entities. We forget the original purpose of the stock market was to allocate capital to help companies grow yet fewer companies seem to need help. In 1997 there were roughly7,500 publicly traded companies in the United States. That number has fallen to 3000. Part of the reason for the shrinkage is because many of those 7500 companies are no longer in business whereas others have been swallowed up in corporate mergers and acquisitions.
Many companies now avoid the stock market altogether viewing it as little more than a glorified casino and seek their funding from private equity firms and venture capitalists firms. It is easy way to get funding without having to meet the regulatory requirement of public equity markets or be subject to Wall Street analysts.
Some contend the stock market has changed and not for the better as its purpose now appears to be a mechanism for draining capital out of the economy in order to funnel most of the nation's wealth upward into a few mega-corporations such as Amazon, Apple, Black-rock, Google, and Facebook.
Notice when government grants corporations tax breaks (as Trump did by lowering the corporate tax rate from 35% to 21%) the idea was the extra income would go to employees or research and development. Instead corporations used the extra income to buy stocks enriching themselves and their execuctove CEOs but not their stock holders and certainly not their customers via lower prices.
This is what our party refer to us economic malfeasance and it might be legal in the United States but rest assured it would be prosecuted to the fullest extent of the law in the White People's Republic and somebody would go to prison and see their corporations confiscated and turned into employee or worker owned endeavors!
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