Opinion: Rising stock market has positive effects for all Americans
EDITOR'S NOTE: Boris Epshteyn formerly served as a Senior Advisor to the Trump Campaign and served in the White House as Special Assistant to The President and Assistant Communications Director for Surrogate Operations.
WASHINGTON (Sinclair Broadcast Group) - The stock market is riding high. The Dow Jones Index is up over 25 percent in the last year. The Standard and Poor's Index is up by almost 20 percent.
That’s great news for those invested in the stock market but does it help the almost half of American who aren’t invested at all? Yes, it does. Let’s break it down.
The indexes are rising because actual stock prices are going up. High stock prices mean that values of companies are strong. That, in turn, allows for companies to have more money to grow, innovate and, vitally, hire people.
It is not an accident that we are seeing near-record lows in unemployment at the same time as we experience records in the stock market.
Moreover, when stocks rise, those who are invested in the markets have more money to spend on everything from cars to new homes. That spending benefits companies throughout the economy and, again, causes more hiring.
Stocks don’t go up in a vacuum. Politics, of course, plays a role. A key issue affecting the stock market is pending tax reform.
Some financial analysts believe the market is going up in expectation of tax reform, which means it will go down and cost Americans money and jobs if tax reform is not done. Others contend that the market will rocket much higher when and if tax reform is implemented.
Here is the bottom line: whether you are invested or not, the rising stock market has positive affects for all Americans. Tax reform is key to see a continued rise in the markets and therefore lowering of unemployment and strengthening of our economy overall. If tax reform does not pass, Americans will feel the negative impact and remember it when election time comes.