The Relationship Between the Stock Market and Job Creation

When the stock market rises jobs are created… right? … RIGHT?

 

NO-NO-NO-NO-NO-NO-NO!

 

Here’s the proof:

·         Lehman Brothers lays off 900 workers. 900 people need a new job AND Lehman’s Brother’s stock shoots up.

·         Philip Morris lays off 2,400 workers. 2,400 workers need a new job AND Philip Morris’ stock goes up.

·         JP Morgan/ Chase announces the merger with Bank One. JP Morgan/ Chase announces the loss of approximately 10,000 jobs. 10,000 people will need a new job AND JP Morgan/ Chase’s stock goes up.

 

Let’s put to sleep the myth that when stock prices rise jobs are created. And let’s not insult the American people by saying that in a few years, we will reap the rewards of higher stock prices with the creation of new jobs. The American people need jobs NOW, not 20 years from now. The only ones that reap the reward of higher stock prices are the few that benefit today.

 

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