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Record Dow Jones and S&P Numbers Have Economists Debating

Record Dow Jones and S&P Numbers Have Economists Debating
Posted November 18th, 2013 @ 6:29pm by KFBK News - Zack Stein

The Dow Jones touched 16,000 and the S&P hit 1800, both new records, however, what that means isn't necessarily as clear as it used to be.

"Economists themselves are debating, you know, is this a permanent thing?  What are the reasons for this?" said UC Davis Economics Professor Colin Cameron.

Cameron said low interest rates, tax breaks, and a tight job market have corporations sitting in the driver seat.   The rule used to be "what's good for Wall Street is good for Main Street,"

"The average person isn't getting the gains they did in the past, and a lot academnic economists are looking into this," the Professor said, and the new reality has left economists scratching their heads.

"Fairly fundamental questions such as, if you get a college, four year degree, things should go well for you, even in the worst sort of cirumstances.  That sort of thing is being questioned now."

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