The Gamestop story highlights "Casino Capitalism," which basically means the financial system is so divorced from reality that investing is more like gambling. It's great to watch rich people lose for once, but like Sam’s parents' marriage, this will only be fun until it isn’t.
The majority of stocks owned by Americans belong to just the wealthiest 10%, so for most people small fluctuations in the stock market have little effect. But if a recession happens and the stock market tanks, it's devastating for regular people, even those who aren't invested.
During the 2008 crisis––which was caused by market manipulation––millions of people lost their jobs, their life's savings, and their homes, while the banks were bailed out by taxpayers. The executives of those banks then rewarded themselves with millions of dollars in bonuses.
When given the choice, America will always save the Wolf of Wall Street, while absolutely destroying the Wolf of Main Street.
The stock market is NOT the economy, and in the past year, that's become even clearer. After an early pandemic plunge, the Dow rebounded to record heights, but unemployment is almost double what it was pre-COVID.
The richest Americans are now making money like never before, while the number of households without enough food has increased by 28% since before the pandemic.
We've let Wall Street bet against America for too long. We need an economy that actually works for the people, not just the company that gives you $5 for trading in all your Guitar Hero shit.
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