Main Street is the real economy that exists far from Wall Street. It can be seen in the large areas of America where most of us live. After twelve long years of near or zero interest rates, massive government deficits, and watching tons of money and stimulus being poured into the economy we remain mired in slow growth. On top of this, we now are seeing covid-19 monkey hammering many sectors of the economy into submission. Small businesses have taken the brunt of this assault. The demise of millions of small businesses underlines the bleak picture we face, this means unpaid rents and more empty storefronts as Main Street withers on the vine. Until now much of the damage has been masked by a massive government giveaway. Unfortunately, the damage all this has wrought will become apparent over the coming months from the strong headwinds facing our economy.
The Financial Sector Has Grown Too Large
Today the financial sector plays an oversize role in our economy as savers poured money into paper promises such as pensions, bonds, and stocks. Our economy continues to be propped up by a combination of unhealthy policies which include massive government spending on top of the artificially low-interest rates and easy money. This has allowed the mega-rich and politically connected to thrive while a huge majority of Americans wither on the vine. The price of stocks and action on Wall Street should not be confused with what is happening in homes across America.
The real economy is neither vibrant nor healthy and current trends should give us pause. An example of this is seen in agriculture. Even if you don’t farm for a living it is important to realize that farm income is not contained in a closed-loop but spills into other parts of the economy, this is true in all of the sectors of our economy. An even bigger issue is how online giant Amazon is allowed to decimate retailers and small businesses aided by the USPS and governments granting it special rates, privileges, and tax abatements. In many parts of America, Wall Street money has become the largest obstacle for small businesses trying to remain competitive.