Representative Alexandria Ocasio-Ortez says the simultaneous record high Dow Jones Industrial Average and rising income disparity in the United States underscores why she ran for office, saying that the record Wall Street gains are virtually meaningless to working poor Americans.
In a Tweet on Saturday she wrote, “The Dow soars, wages don’t. Inequality in a nutshell.”
The Dow soars, wages don’t.
Inequality in a nutshell. https://t.co/hD1g1y4uBk
— Alexandria Ocasio-Cortez (@AOC) January 12, 2020
The New York congresswoman commented on an NBC News tweet about the index passing the 29,000 mark for the first time on Friday.
Business Insider says Ocasio-Ortez was referring to the widening gap between US stock-market gains and wage growth in recent years. The Dow surged about 22% in 2019, but average hourly earnings, according to the US Bureau of Labor Statistics, rose just 2.9%. Stagnant US wages have puzzled many economists, given that unemployment has plunged to its lowest levels in more than 50 years.
While President Trump has frequently cited the record rises on the stock market as an indicator of a “booming economy, Ocasio-Cortez says “The stock market is NOT the economy,” she tweeted in February 2018. “Stocks aren’t jobs. Stocks aren’t wages.”
Economics 101 reminder: The stock market is NOT the economy.
Stocks aren’t jobs. Stocks aren’t wages.
That’s why stock prices can go up and normal people still won’t feel any more secure about their future.
Recessions are when real GDP growth falls for 2 quarters in a row.
— Alexandria Ocasio-Cortez (@AOC) February 5, 2018
“That’s why stock prices can go up and normal people still won’t feel any more secure about their future,” she added.