The Inverse Relationship Of The Real Economy And The Stock Market In USA
By Sam Hamod, PH.D.
April 11, 2010 "Information Clearing House" -- - Just the other day, a man who has been in business and has also been in commercial real estate said that he was mystified as to why the “economy is in recovery, but we aren’t seeing any evidence of it in business or commercial real estate.” I explained to him that the STOCK MARKET WORKS IN AN INVERSE RELATIONSHIP TO THE TRUTH ABOUT OUR ECONOMY. THE TRUTH IS THAT MOST OF THE TIME WHEN THE STOCK MARKET IS UP, IT IS AT THE EXPENSE OF WORKERS AND THEIR JOBS. IF YOU DON’T BELIEVE ME, THEN READ ON, PLEASE.
If you watch CNBC and other such channels talking about the economy, they continually talk as if the stock market is the economy; this is phony and as wrong as a $3.00 dollar bill.
What you must really watch, to understand what the REAL ECONOMY is has to do with THE NUMBER OF NEW JOBS BEING CREATED THAT PAY A LIVING WAGE, not the rocketing value of the stock market or the phony “unemployment numbers.” I say they are phony because since Ronald Reagan’s era, if a person was out of work for a selected amount of time, usually 18 months, even if they were looking for a job and were willing to work, THEY WERE NO COUNTED. Thus, today, we have countless thousands who have been out of work for even more than 18 months, but they do not count—THEY ARE NOT EVEN COUNTED AS UNEMPLOYED. Thus, the real unemployment figures are closer to 25% or more, because, in order to inflate the employment numbers, the Reagan people started counting the military in the equation of “employed” as well as anyone working half-time or more; something that had not been done before. Of course, no president since has wanted to tell the truth, so the lies continue.
Now then, you may ask, why do I say there is an inverse relationship between the stock market and the real economy, it’s because CORPORATIONS INCREASE THEIR STOCK VALUE AND ALLEGED PROFITS BY CUTTING BACK ON THE WORK FORCE OR BE OUTSOURCING JOBS, SO THAT THEIR COSTS ARE DOWN; THUS, THEIR STOCK GOES UP ON THE STOCK MARKET CHARTS. Of course, the “commentators, “ who are hustling stocks at all times on CNBC know this, but they will say nary a word about this—instead, they keep saying, “Wow, the market is up, and that shows the economy is recovering.” In fact, I’D SAY, OFTEN WHEN THE PROFITS OF THE CORPORATIONS ARE UP AND THEIR MARKET VALUES ARE UP, AND THE MARKET IS UP, YOU HAD BETTER WATCH OUT BECAUSE THE REAL UNEMPLOYMENT IS RISING.
SO, INSTEAD OF TELLING US WHO MANY “LIVING WAGE JOBS” ARE BEING CREATED, WHICH ARE FEW AND FAR BETWEEN, THEY KEEP TALKING ABOUT THE “MARKET IS UP” AND ALSO, THAT THE “UNEMPLOYMENT NUMBERS” ARE DOWN (and of course they are down because so many who are out of work and have been out of work are no longer being counted!)
What we have then is one big scam on top of another, and yet everyday, the networks, the media and the Wall Street Journal keep trumpeting we are in “recovery,” but they never speak of the creation of living wage jobs because those are the jobs and situations that tell you where the REAL ECONOMY is.
Professor Hamod writes about world, cultural, economic and social matters for a variety of journals in the U.S. and overseas. In addition he is a poet with 12 books to his credit. He may be reached at: samhamod2@gmail.com for lectures and readings.
C: PROFESSOR SAM HAMOD, PH.D, April 10,2010
AI
