How Rising Prices + Stock Market “Records” have CRUSHED the Average Joe

by | May 22, 2024

The Zimbabwe stock index, which 8 years ago was at the 100 level, subsequently rose to 3 million. Seriously, that is a 3 million percentage gain in the stock market. I guess that Zimbwaeans were the wealthiest, best off people on earth.

video: How Rising Prices + Stock Market “Records” have CRUSHED the Average Joe

How does all the money printing crush the little guy?

How do leftists want to have their favorite politicians get credit for a stock market at all time records, but want to blame the “greedy” corporations for raising prices?

Does it seem like these two can exist side-by-side?

These are the questions that I’m going to answer.

I was sucked into left-wing Twitter, the other day, and was able to witness the dichotomy of the leftist mind, those whose economic understanding approaches zero.

Here are two posts I saw, one right after the other.

Can you please stop talking about the trump economy?

Four years ago the Dow closed at 19,200. Today the Dow crossed 40,000 for the first time ever. So yes, we are better off today.


I get that people are upset about higher prices, but what I don’t get is why people are furious at Biden, instead of the corporations who raised prices to rake in record profits.

Generally the elevated prices we see today lead to the “record profits,”  which is the fault of the greedy corporations, are what to lead to all time stock market highs, which of course Biden and the Democrats deserve credit for … my job here is the explain the mechanics and what is driving these two phenomena.

First of all, when you spend more money than you have, as both Trump did during 2020, and Biden has been doing on hyper-drive, you are flooding the system with dollar bills which raises pricing levels the same way if you doubled the level of water in a bathtub, the level of all the rubber duckies and boats will rise with it. A rising tide raises all ships.

Think of an economy with a million dollars available, and 4 houses. Suddenly you double the money supply to 2 million dollars, what happens to the price of the houses with all that extra, made cash circulating like a tornado, chasing these assets?

Well, the housing price, will, as you likely guessed, double.

But did everyone get wealthier because the nominal price of a house went up? The number of homes, that didn’t change, only the pricing mechanism.
Similarly, the price of everything in the economy doubled. That means the value of the house retains the same buying power in terms of real goods and services …. except … except you’ll have to pay taxes on the so called “profits” so you have actually LOST value to the government.
Let me emphasize this, the true wealth is measured by the amounts of goods and services available to its people, not the price function by which it is measured.

To prove this let’s look at the best, by far, performing stock market, until very recently, on the planet.

The Zimbabwe stock index, which 8 years ago was at the 100 level, subsequently rose to 3 million. Seriously, that is a 3 million percentage gain in the stock market. I guess that Zimbwaeans were the wealthiest, best off people on earth. They can come here and buy America.  End of story right?

Well, no actually there were less goods and services to purchase in Zimbabwe. From the removal of white farmers from the land they owned by the state, from meritous production, to reparations and DEI.

From the Cato Institute: The production of farm goods in Zimbabwe dropped significantly after the land reform program that, which involved the removal of white farmers from commercial farms. Estimates suggest a decline of around 60% to 80% in total food production within a decade

  • Sharp decline in output: Commercial farmland lost a significant portion of its value. Food production, especially export crops like tobacco, plummeted.
  • From breadbasket to food shortages: Zimbabwe, once known as the “breadbasket of Africa,” faced food insecurity and required international aid.

But anyways, let’s do the same in America. Let’s bring similar policies that proved horrendously destructive here, but … this doesn’t change the fact that according to the same people advocating for such policies, the US is by definition better off with the stock market that is hitting all-time highs, even though the market on a percentage basis has not advanced one percent as far as Zimbabwe’s did.
So why is market going up? It could be advances in productivity, greater efficiencies, we have seen some of that …. OR, it could be the printing of money and massive deficit spending our government has been engaging in.

And as described, what happens when you print cash ?
As the price of inputs like oil and labor rise, prices around the economy do the same. Again, you are merely flooding the bathtub with cash.

And let’s say you are the much maligned grocery store manager. Will you run your business at a loss? No, to continue to serve the public, you are of course are forced to mark-up what you distribute from your shelves, but because of competitive pressures, you are still operating on a low profit margin, which is your incentive to show up and make sure the business runs smoothly.

So, if I sold something at $10 previously, and suddenly my costs doubled, and I had to sell it for $20, assuming a profit margin of say 10% for simplicity, my profit doubled from one dollar, to two dollars at the $20 level.
Record-breaking profits!!
Except that because the price level of everything doubled, I have the same buying power with said profits as I had previously.

But the people who are wealthy and are able to store their money in the stock market, see the nominal rise. Their wealth, their assets are protected from inflation, because they can raise prices.

The people who are absolutely screwed in this scenario, are workers, and savers or who are on fixed incomes.
Laborers, because wages are generally far more sticky, and are delayed/ harder to argue for an increase than is the price of oil, which responds nearly instantly when the federal reserve  announces it is going to flood the economy with currency.

And anybody who was saving in cash, with the amount of currency doubling, has had their share of wealth diluted by 50%. The government is stealing from you, and the rest ion the planet that , at least for now, sees the US dollar as a store of value, and thus we are able to export some of this inflation to suckers holding US currency … and then those who are printing the currency, have cajones to put the onus, the blame, on the grocer, on the mom and pop gas station owner, for the rise on prices felt by the consumer that they caused.
And all these leftists on Twitter, want to give Biden and the Democrats credit for a rising stock market, and that we are better off than when Trump was President, but blame greedy corporations for record inflation driven profits, which the stock market directly accounts  for when calculating the value of the company.

The Elizabeth Warren’s, the Joe Biden’s, they represent Wall Street, as they fleece the workers and the middle class, and transfer your hard work into their pockets of the wealthy,, via cronyism legislation, printing all the money, and all the stifling regulations they can muster that crowds out competition.
But, like a good politician, they will shift the blame to anyone but themselves, and get their weak minded acolytes, propaganda team, and sock puppets to crow for their supposed successes and put the blame on others for the damage caused.
It’s cynical, it’s evil. They crush you, your life work, and your family and get so many to blame those bringing you the products and services, and then get their mind virus infected zombies to propagandize for them on Twitter to gaslight the public.

And that my finds, is the reality before you today. I only hope that I shine a light on it, for you to see it in the reality that truly exists, not in the the shadows and lies they cast upon it.


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