Stock Market junk :////
As of mid to late February, there was a massively steep drop in stocks Through to mid to late March. This steep drop is a drastic change that hasn't been seen in years. This reflects much of the hurt the U.S. economy has been going through due to the affect of the pandemic on consumers' and the basic rule of supply and demand. People aren't going out and buying things due to the virus, and so they're not providing enough of a market for products. Because they're not able to sell products, companies are losing money. Since these companies have less money, they have to lay people off. People who are laid off then have less money to buy products, and the cycle continues. This is only on top of how the virus is inhibiting people from working anyways, so there's not as much labor to provide for the creation of goods. All of this anxiety around fears of companies' failures motivates people to sell their stock.
This all sounds bad for everyone, and it is, however, the majority of large multinational corporations have enough capital to weather through this, and they are continued to be supported by the political system due to their structural and economic power. The optimism of wallstreet can already be seen in the recent surge in the stock market. This shows that there is confidence among shareholders of recovery. This however, does not necessarily mean economic security for individual citizens and workers. Government's interest seems to be focused more on these large companies. Stimulus package benefits have been skewed in favor of the rich, once again showing corporate influence on policy. While these companies hoard this money and use it to satisfy share holders and keep up production, people continue to be laid off, and remaining workers are worked harder. This results in maintaining the same individuals in power, all the while the poor get poorer and sicker.
This all sounds bad for everyone, and it is, however, the majority of large multinational corporations have enough capital to weather through this, and they are continued to be supported by the political system due to their structural and economic power. The optimism of wallstreet can already be seen in the recent surge in the stock market. This shows that there is confidence among shareholders of recovery. This however, does not necessarily mean economic security for individual citizens and workers. Government's interest seems to be focused more on these large companies. Stimulus package benefits have been skewed in favor of the rich, once again showing corporate influence on policy. While these companies hoard this money and use it to satisfy share holders and keep up production, people continue to be laid off, and remaining workers are worked harder. This results in maintaining the same individuals in power, all the while the poor get poorer and sicker.
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