Econ 101 For Progressives

Take the time and go through this article in detail. You will get some fundamental information on our free market economy works.

AlterNet: Dean Baker on How We Can Make the 'Free Market' Work for the 99%

And, even with the growth of 401(k)s, only about a quarter of the population owns anything that could be considered a significant amount of stock -- at least $25,000 worth.


A higher stock market may lead to a modest increase in investment, but companies rarely finance investment by issuing stock. In fact, a rising stock market will primarily affect consumption, as people spend more money based on their stock wealth. So the main economic impact of a higher stock market is that people with lots of stock will be driving up house prices as they buy more and bigger homes, driving up college tuition since they can afford to pay more for college and crowding the rest of us out restaurants. If this is something to celebrate, I sure can't see why.


(The Fed) places a huge focus on keeping inflation under control and is prepared to cause a lot of unemployment to achieve this goal.


Very few progressives understand the Fed's role in determining the unemployment rate and many of those who do think it's inappropriate for political figures to attempt to influence the Fed.