, Columnist
The Booming Market Strengthens the Case for Stimulus
No, the market is not the economy, but it’s sending important signals.
Sending a message to Washington.
Photographer: Alexi Rosenfeld/Getty Images North AmericaThis article is for subscribers only.
With markets booming and a few lockdown-sensitive businesses making huge gains, some commentators are asking whether any economic stimulus is needed at all. One answer is yes, because millions of Americans still need help — and besides, the stock market isn’t the economy.
The second half of that answer is correct in a literal sense. But it would be wrong to say that the market is not an important part of the economy, or that the signals it sends should be ignored. Most truly serious changes in the economy are reflected in financial markets — and vice versa.