Wondering if the stock market and DOW will keep climbing?
Posted By RichC on June 6, 2014
While closing the first full week of June on a rather high note (all time high!), the financial markets and Dow Jones Industrial Average pushed ever closer to 17K — DJIA closed at 16,923.77 up 87.66 (0.52%). I’m probably not the only one wondering how companies can keep performing when consumers have fewer dollars leftover after their bills and seasonally adjusted unemployment remains above 6% in a so-called recession recovery. Those with an optimistic view will say that “at least it is improving” … albeit ever so slow.
Of greater concern is the lack of job growth and upward mobility for those in the workforce. Pay has stagnated while the cost of living (real things everybody buys – healthcare, energy, food, etc) is rising and 
taking a bigger and bigger bite out of family incomes (ask any mom or dad who balances their budget). Unless you’re living under a rock, the job prospects for high school and college graduates are dismal. We need to do something to stimulate hiring and job creation … and the one thing that will work is to lower corporate income tax in order to bring overseas cash home and convince companies that it is ok to make money in the United States. Critics are concerned lowering taxes will only return capital to shareholders in the form of special dividends, but it will be reinvested one way or another in the U.S. economy and grow business (who will hire workers). Once that happens, companies will compete for talent improving wages and benefits AND creating a larger tax base.
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