In this episode of What’s Ahead, I attack the destructive idea advanced by politicians like Joe Biden that a booming stock market comes at the expense of American workers. Stocks reflect how investors view current and future prospects of both companies and the economy as a whole. For example, equities collapsed in February and early March as the coronavirus crisis loomed. They began to recover weeks later, when it appeared the economy was emerging from the lockdowns.
Most amazingly, the Bidens of the world ignore the fact that over 100 million Americans have more than $9 trillion invested in 401(k)s and other similar types of plans. Low stock prices mean fewer retirement dollars for Americans. Trillions of dollars’ worth of stocks are also in traditional pension plans, and a bad stock market over time would spell trouble for those promised benefits.
Low taxes and fewer suffocating regulations are the keys to future prosperity, not scapegoating the stock market.