Trump Fed nominee Stephen Moore predicts big downward redistribution of wealth if Trump defeated
from Dean Baker
Moore said it would take the form of “the biggest sell-off in the stock market in American history.” Since stock is overwhelmingly held by the wealthy, if the market plunges, it means that wealthy will have relatively less wealth.
It is important to remember that the stock market in principle represents the value of future after-tax corporate profits. This means that any measure that should increase after-tax profits, such as the Republicans’ corporate tax cut, should lead to a rise in the stock market. By contrast, measures that reduce corporate profits, like reining in abusive insurers or taxing fossil fuel companies for the damage they cause to the environment, will lead a fall in the stock market.
While this would mean that rich people would have less money, it has little to do with the health of the economy.
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Real-World Economics Review Blog 
The idea that this would result in a downward transfer of wealth is nonsense.
Since the stocks sold would be bought by other rich people it would just be a redistribution *within* the capitalist class (nor would it reduce *real* wealth, merely the overall nominal value of claims to wealth).
Moore disqualified himself from being a competent Federal Banker when he was quoted as saying that MMT was wrong, without having read any of it. He is just another mainstream Classical stooge. It’s not what we need.
Sounds good. I am short this pie in the sky market of companies who sell nothing but client secrets and notes that last longer than the plastic cars they rely upon to validate their dream of mobility.
Like other so called “markets” the stock market is completely manipulated by those that create and move money around at will. They can make the “market” move any way they wish any time they wish.
Rest assured that any major move in market value will be designed to further their interests, at the expense of the rest of us. In their hands, money is simply a manipulative tool.
Just the hope of a massive downward redistribution of wealth is enough for me to get rid of my Trump 2020 lawn sign, if there were no other reason to vote against Trump. I can’t wait for my share! I don’t own any stocks, of course, so I”m not clear on how the redistribution will actually get to me, but I trust economists implicitly, like so many people in this complex modern world of ours.
“I can’t wait for my share!”
I think you missed what was being said. If you have $20 and Bill Gates has $100 Billion and Bill Gates loses half, then your $20 is worth more with less money in the economy so wealth has been distributed downward.
Of course the idea that inflation somehow magically spreads through the economy when rich have fewer investment dollars is delusional, but that is his perspective.
Well, it’s May Day (Workers’ Day) soon, so perhaps we can all buy enough stocks and shares to support some of those who have stolen so much from the global poor. We could then possibly afford a dime or two as commission to their “stooges” too. Or in British terms (as May indicates the utter confusion and poverty that the likes of Mrs. May have caused) a penny or two.
I wish someone would get honest and call the stock and commodity markets what they really are – just huge manipulative gambling casinos. They are there for the big players to fleece the small players, and in truth, those casinos have nothing to do with the nation’s wealth or its economy.
are you certain? I thought they were there to serve mankind, which appears to want entertainment at any cost, even a heavy cost to themselves.
Moore is a scoundrel and a stupid one. I’ve picked up rocks on the street that were smarter. But he does know how to sell short. And he would have no ethical or loyalty problem in doing so.
Moore is an ideologue. Ideologues are linear thinkers when what is required is integrative thinking. The process of wisdom is the integration of opposites, and a paradigm being a single concept that grasps and affects an entire pattern change makes it the quintessential integration of opposites.
Conceptual opposition is a primary signature of paradigm change and Debt/Burden and Monetary Gifting are opposites. Likewise power is the ethos/zeitgeist of the age and grace as in redeemed power is its opposite. Think about it.