Ocasio-Cortez on Dow's Record High: "Inequality in a Nutshell"
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Rep. Alexandria Ocasio-Cortez jumped on news of another record high for the Dow Jones Industrial Average Monday by issuing a tweet that was delicately infused her usual anti-capitalism rhetoric.
"The Dow soars, wages don't," the New York congresswoman wrote. "Inequality in a nutshell."
The Dow soars, wages don’t.— Alexandria Ocasio-Cortez (@AOC) January 12, 2020
Inequality in a nutshell. https://t.co/hD1g1y4uBk
The Dow Jones Industrial Average - a benchmark index of 30 blue-chip stocks including Apple, Nike, and Disney - crossed the 29,000 mark for the very first time on Monday.
Rep. Ocasio-Cortez was reportedly referencing the fact that while the Dow surged 22% in 2019, wage growth, according to the US Bureau of Labor Statistics, rose just 2.9% in the 12 months to December.
On the surface, AOC's reasoning (God help us) appears solid. But like all things in economics, it's more complicated than that.
Take a look at this video from December 27, 2019, on MSNBC:
In short, while wage growth did not, in fact, keep pace with the Dow in 2019, it grew at its fastest rate in more than a decade. And as noted by MSNBC, major employers such as Amazon and Tiffany's posted massive sales numbers for the holiday season, and markets around the globe are up as well.
Further, while Democrats have been pursuing a baseless impeachment strategy to improve their odds in the 2020 election, Republicans and Middle America were practically begging Nancy Pelosi to bring the USMCA trade agreement to the House floor - a bill with broad bipartisan support.
WIBC host Tony Katz addressed AOC's comments on wage growth Tuesday morning:
"She doesn't know what she's talking about. She has a degree in economics and she has no idea what she's talking about OR she chooses to lie.
"But put all that to the side and look at the tweet, which was childlike. It was like a child trying to explain why some things are good and some things are bad. That kind of nonsensical blanket statement is childlike.
"Don't believe this child. If she says it's sunny outside, bring your umbrella."
Click below to hear more from Tony.