Posted on 03/06/2017 10:26:55 AM PST by pabianice
The Great Recession of 2008 and 2009 started with a bottoming out of the stock market, which eventually led to the loss of millions of jobs, and trillions of dollars of wealth throughout the country. This devastating crash was the risky gambling brought by a severely under-regulated financial system, and the entire country suffered as a consequence.
Although it lost about 50 percent of its value during the recession, the S&P 500 rose 166 percent during Obama’s presidency. Since Donald Trump’s election on November 8, the Dow Jones has had a record rise of almost 3,000 points, topping the 21,000 mark for the first time in history. The U.S. stock market gained $1.4 trillion alone between the election and inauguration day.
These figures represent a trend in the U.S. economy for decades: incomes for the average American remains stagnant, while the financial industry continues to , even as it crashes the entire economy every now and then.
In a perfectly functioning economy, this growth of the financial sector should be correlated with growth in a wide array of industries, and thus a rise in wages for the average worker. In fact, every robust economy requires a prosperous financial industry. This is because the intended purpose of the industry is to collect savings and funnel them toward productive investments.
However, today’s financial sector has a much different objective: quick gains from gambling and inflating asset prices within the financial industry itself, in areas such as real estate and equities. Today, only 15 percent of the money flowing from banks is used for business investment. This money makes its way into the real economy where most of the country operates, while the other 85 percent circulates through a closed financial loop that only benefits a small percentage of the country.
(Excerpt) Read more at dailycollegian.com ...
Like several articles from the left, this one has lots of stats about a “problem”. But when it comes to cause or solution it has little to no facts. But its filled with assumptions that are not backed up with any research. Its hard for me to even read this through after it sets up its case on theses that I disagree with and are not supported with facts.
I am sorry to say that my daughter received her Masters from the UMASS Soviet Peoples University. It is filled with radical left wing bums who expect the government to take of them while they protest and try to tear down the USA. The latest UMASS cause is to remove any Presidents name who was a slave holder from public schools. So Washington, Jefferson, Madison & Monroe all have to be wiped out.
Simple answer: Finance Industry is making money off the global economy and everything is just the United States.
Plus they amass hundreds of thousands of dollars in debt in getting that useless degree.
I stopped reading after the second sentence. I don’t like to read fairy tales before bed time. I fall asleep.
If these clowns think the financial crisis was caused by faulty regulation, they really need to read something other than their own paper.
You would think someone would talk to a banker who worked in the mortgage business in the late 90’s and early 00’s. The appetite for debt and greed of the average person in this country was downright scary.
People would mortgage their homes to 135% of the appraised value. 135%. And then the markets were shocked when it all went to hell.
In MA the list of Presidents starts with Adams, and then jumps right to JQ Adams.
Who are these other men you speak of so highly?
//sarc
While I have little regard for academia today, with Marxist/Progressive ideology operating as academic dogma in so many areas, as far as I can tell UMass does not offer a Doctoral program in “Social Justice” and I don’t know what source you have for your claim that 1/3 of UMass students take courses in “Women’s Studies”.
Any article which starts with the fiction that an under regulated banking industry is at fault for government mandated risky loans is sure to continue the fiction throughout, and of course this is no different.
Why hasn’t the economic recovery turned to larger salaries? Because the recovery is finally starting. Tens of millions who left the workforce or went underground are now returning to the job market. That means that any salary is gaining dozens if not hundreds of applications.
Higher wages aren’t required to bring people out, any job is.
Wages won’t go up from marketplace pressures until those who left the market are back employed.
Without TooBigToFail this would all have been over with in 3 quarters and booming. Piling on the huge burden of new regulations of virtually everything has kept a heavy lid on the economy and, with the highest business taxation in the developed world all of the business that can make the move are moving out of the country.
you should have been there when I was arguing with the insane leftists on the UMASS campus! Those idiots had no idea what the “old white slave owners” did for this country...My wife was breaking her arms pulling me away.
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