Wall Street Versus Main Street

D0D31E18-F47E-481E-B833-F1633E716B72As I write this, the Dow Jones Industrial Average, the premier barometer of Wall Street and the “health” of the American economy, is on a tear. And this makes Donald Trump and the relatively small numbers of American population who are wealthy and are heavily invested in the stock market very, very happy. But what about average, everyday Americans?

According to a Gallup poll conducted in March and April, 55% of Americans reported that they own stock. A high percentage of that stock ownership is from people like me, whose money is invested in retirement savings accounts, like their employer-based 401(k) or IRA accounts. But according to Goldman Sachs, the richest one percent of Americans account for more than half the value of equities owned by U.S. households.

Stock ownership is strongly correlated with household income, formal education, age, and race. It’s much higher among older, more highly educated whites earning more than $100,000 annually than it is among blacks, Hispanics, and the non-college educated.

So yes, a segment of the population is thrilled with the way that Wall Street has bounced back. But what about Main Street America? Are Wall Street and Main Street out of touch?

Wall Street investors are are excited and optimistic simply because they see progress in the reopening of our economy. Yet the continuing health crisis from COVID-19 has killed almost 110,000 Americans and there is no let-up in sight. There is record-high unemployment. Civil rights demonstrations (some violent) have been occurring across the nation. And the president is threatening to use the military against American citizens using their First Amendment right to assemble and demonstrate.

So there does seem to be yet another divide in America. Not the race divide, not the income divide. Not the political divide. But the divide that has a little bit of all of that: the divide between Wall Street and Main Street.

12 thoughts on “Wall Street Versus Main Street

  1. XingfuMama June 5, 2020 / 11:50 am

    I believe that this disconnect is going to cave in some day, maybe not too far out. The richest 1% don’t spend their money, they hoard it. If the rank and file Americans don’t have money to spend the stock prices will go down. Trickle down economics never worked, it was just an excuse to allow trust and monopoly laws to not be enforced.

    Liked by 1 person

    • Fandango June 5, 2020 / 11:22 pm

      I think you’re right. This is not sustainable.

      Like

  2. Marilyn Armstrong June 5, 2020 / 12:06 pm

    I think saying Donzo is “out of touch” with Main Steet and actual Americans is a massive understatement. Over the past few months, my opinion of 45 has actually diminished. I wouldn’t have thought it possible for it to get any lower, but from believing him to be a sociopath, I raise you to psychopath with a deep hatred for the country he leads. Everything he has done has hurt everyone but his rich pals. He is an empty, bloated balloon and a coward. Other than that, I really like him.

    Liked by 2 people

    • Fandango June 5, 2020 / 11:24 pm

      Other than that, Mrs. Lincoln, how did you enjoy the play?

      Like

  3. annieasksyou June 7, 2020 / 7:36 pm

    If the Dems had been more attuned to that in 2016, Hillary would be running for re-election. We probably would have had gridlock while the Republicans threw everything they could at her, but we wouldn’t have had THIS.

    Liked by 1 person

    • Fandango June 7, 2020 / 11:05 pm

      Let’s hope the Dems do a better job of driving home the point this time around.

      Like

  4. Marleen June 9, 2020 / 11:04 pm

    “… millennials are getting CRUSHED …’

    (Not only that, there’s reference to people under 55.)

    Liked by 1 person

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