The Dow Jones Industrial average is up and has been over the last few months. Could this mean our nation is picking itself out of the slump? Or could this be a false positive? The five-year Dow indexes say we have worked ourselves back up to where the Dow was in most of 2005.
For people who are not economics majors this is fantastic news, and it really is simple to understand. The Dow Jones is the measure of trade in the free market, which is our market. When things are going up, a lot of things are being bought and sold and there is a lot of financial activity. When things are falling, then nothing is being sold and no money is being made. This directly mirrors the economy because the money the Dow makes represents the amount of money businesses and American people are making. So in a sense the Dow is a chart of how well American business is running.
The economy is based on how well each individual market is performing all together. The housing market has not been doing well in the last few years and this has affected the rest of the markets negatively and brought the economy down. So it has been in the news and there has been legislation to fix it, and it has worked. In October alone the market went up 10 percent. This makes it possible for the construction market to make money, along with the real-estate markets. It’s a tangled system.
With the Dow on the rise Americans and businesses can invest and spend and not hoard their money in mattresses, afraid the market will collapse. The hope is once we build up the market it will be able to stand on its own and we can fan the flames without having to put every effort into it. When our country is making money we can fund construction, education, medical ventures, and the possibilities are endless.
Right now our government has put crutches under the sinking problems to try to stabilize our nation or at least make it look stable. If for one second our nation does not appear to be the ultra-strong force it has always been, then our creditors may come calling.
So the money being pumped into the market seems to have helped, and the unemployment rate has stayed the same instead of rising as it has been doing for the past three years. Now we may finally get to lower it.
Americans may have jobs again and things may be on the up, or it could be that good old false positive. The crutches might buckle and we may just find ourselves borrowing another million dollars from China. There is no way to know, or is there?
My only warning is to know what is going on. Listen to what the news is really telling you and not what they sell you in useless programming. Buy stocks you know to be firm and think with your own brain.
Most of our nation’s problems come from blind following. It is good to believe in your leaders but not acceptable to not question them. We must always know what is going on and what to expect. After all, it is our nation, the land of our freedom and our children’s freedom.


March 26th, 2011 on 8:47 PM
“we have achieved already a large degree of success” – including an arms embargo, the no-fly zone and the halting of loyalist troops near the rebel-held city of Benghazi.