Progressive Policies May Hurt the Stock Market. That’s Not a Bad Thing.
It is worth noting that we had very strong growth, with widely shared benefits, in the 1950s and 1960s, when stock prices were far lower relative to the economy. So the idea that we cannot have a rapidly growing economy with a much lower stock market not only contradicts economic theory, but also a large amount of evidence.
Obviously, some people will be hurt by a falling stock market, but because of the incredible inequality of stock holdings, the vast majority of the losses will be incurred by the richest 10 percent of the public, with the top 1 percent seeing close to 40 percent of the losses.
There will be middle-class people that see some hit to their retirement funds, but this just goes back to that old saying: If you think you have an effective policy that doesn’t hurt anyone, then you don’t understand the policy. We need to make fundamental changes in many areas, and this will almost certainly mean a decline in the stock market. We need to acknowledge this fact and recognize that reining in bad practices in the corporate sector is good for the economy of the country and the world, even if it is bad for investors.