The Aughts Were A Lost Decade — Part II
Bloomberg notes that even though the 2009 stock market rally was pretty remarkable, it did not save investors from the single worst decade of returns. And that is the single worst since they’ve been collecting data:
This past year’s rally wasn’t enough to restore money lost in two bear markets after the Internet bubble collapsed in 2000 and more than $1.7 trillion in global bank losses sent the index to a 38 percent decline in 2008. The S&P 500 posted an average decrease of 0.9 percent a year since 1999 including dividends, the first negative return for a decade since data began in 1927, according to S&P analyst Howard Silverblatt.
“This dispelled two myths,” said Robert Arnott, founder of Research Affiliates LLC, which oversees $47 billion in Newport Beach, California. “The notion that investment gains are easy, and the notion that stocks will win for the patient investor, no matter what we pay.”
Bolded text is mine.
One more reason, I think, why many middle class people are thinking they are losing ground.
Middle class people are losing ground.
One thing that bothers me is the short-sightedness of many economic policies. The U.S. benefits more when everyone shares in the economic growth and not just the upper income brackets. If the U.S. middle class keeps losing wages who do businesses think they’re going to sell their goods to? The U.S. became the economic powerhouse that it is because they pursued policies to let the middle class thrive, like universal education and civil rights advances.
Another thing this graph shows is that privatizing Social Security would have been a disaster. I’m glad Democrats were able to stop it. I hope the fiscal scolds in the Democratic party will stop demagouging about entitlement reform. A strong safety net seems more important than ever now.
You know what would be interesting – comparing our decade to places in Europe. The Republicans have spent a lot of time telling us that Europe was in terrible shape because of their strong safety net. I wonder how we compare now? Our decade of firing people and sending job overseas doesn’t seem to be benefiting us.
Goldman Sacs delivering $23 billion to its “employees”. Oh what webs (they) weave when first (they) practice to deceive.