New York (CNN Business)America’s booming stock market is a flawed yardstick for measuring Main Street’s recovery from the pandemic.
But that doesn’t stop President Donald Trump from repeatedly pointing to the V-shaped rebound on Wall Street as proof that most Americans are doing well again.
“Stocks are owned by everybody,” Trump said during Tuesday’s town hall on ABC. “Look, we’re having a tremendous thing in the stock market, and that’s good for everybody, but people that aren’t rich own stock and they have 401(k)’s.”
Just over half (52%) of American families have some level of investment in the market, mostly through 401ks and other retirement accounts, according to the Pew Research Center. Only 14% of households are directly invested in the market.
“Holding up the stock market as the barometer for how the middle class is doing is totally erroneous — and very misleading,” Edward Wolff, an NYU professor who has studied stock ownership and inequality, told CNN Business.
“It affects everybody, it affects a person that owns $10,000 worth of stock in IBM or whatever company it may be,” Trump said during the town hall.But rich Americans have far more skin in the stock market. That means when stocks go up (or down), […]
read more here —> www.cnn.com