A Referendum on Capitalism
By James Livingston I know a financial planner who meets with his clients every quarter, to review and revise their portfolios. He recently met with one, a retired executive, who said (I paraphrase), “Donald Trump is a pig who turns everything he touches to shit. But he’s made me a bundle this quarter. OK, you have, by keeping me in equities. I gotta vote for him. Especially since if Bernie’s elected, the stock market loses 20% overnight. You said that.” These remarks capture the mood of the majority just now. Nobody I know–except my friend the financial planner and his ex-wife–is deeply or directly invested in the stock market, but 59% of Americans say they’re better off than last year, and fully 76% expect better things to come. And this, according to Gallup and the Pew Research Center, even as concerns about jobs and the economy keep rising, making them the principal issues for Republicans and Democrats alike–and as, meanwhile, Bernie Sanders, who proposes to finance M4A with a tax on stock trades, remains the leader among Democratic presidential candidates. What’s going on here? Only 10% of stockholders own 84% of shares traded on the NYSE. The rest of us occupy Wall Street at the distance of our pension funds, if we’re lucky enough to have one (most of us do not–see below). Why does anyone treat the stock market...
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