Whatever Happened to the Market Crash?

A few economists and arm-chair experts have been waiting for a major downturn in the US stock market following the upheaval of the pandemic and a draw down in government spending. It hasn’t happened. So why is the market still so strong? GDP is looking to be 5.4% this year, which is impressive for a developed economy. What is keeping the market strong and the US economy so stable?

In this video, we get some insight as to why the economy continues to hum along. There are a few factors worth noting: factory construction is up as companies move production out of China, and this means money is pouring out of corporations and into the economy (which is good!). Another factor is the tight labor market and the rise of wages at the bottom end of the market. People are spending more money. Also, while inflation has been terrible, the US has had less inflation than the rest of the world which has left the US economy in a much better place. The other factor, which no one has noticed is US energy independence. US energy independence began under the Obama administration and despite the right-wing talking points, the Biden administration has kept that going, and the US is now a net-exporter of energy. Keeping energy costs down is vital to a strong economy.