The Danger of the Dow

The economic disaster of COVID-19 is being completely masked by a strong DOW and trillions of dollars pumped into the economy by the federal government. The Dow Jones industrial average does not reflect the economy, but only the most successful and largest companies in the world. It does not reflect anything about the millions of small  and medium sized businesses around the country. In fact, during COVID, the largest businesses have thrived because they are getting the business lost by the closures of the smaller businesses. It is said to be the most significant transfer of wealth ever (from small businesses to large ones). But there isn't panic, even though 30 million Americans are unemployed. 30 million! Unemployment benefits (and extra money provided by the Federal Government) only last so long and a disaster is looming. 

It is only a matter of time before the lack of wealth, among regular people, will trickle up to the larger companies, causing them to cut back, lay off workers, and speed up this cycle. A vaccine can stop this, but will it be in time. It is possible that Trump or Biden could inherit the most toxic economy in memory and they aren't even talking about it. 

Wuerker cartoon

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