9 May 2013
On Tuesday, Wall Street celebrated a new milestone. The Dow Jones Industrial Average crashed through the 15,000 plateau, setting yet another record in a dizzying climb that has seen the benchmark index rise by almost 15 percent since the beginning of the year.
It took just two months after recovering all of its losses from the financial crash of September 2008 for the Dow to breach the 15,000 barrier. It rose 1,000 points from the 14,000 level in just 66 days.
The Standard & Poor’s 500 stock index also hit a new record Tuesday, having gained 199 points since January. The Nasdaq Composite index closed at its highest point since November of 2000. The manic rise in US stocks is part of a global phenomenon. The FTSE All-World equity index on Tuesday rose to its highest level since June 2008.
The current explosion of stock prices expresses two essential tendencies. First, the disconnect between the process of wealth accumulation by the corporate-financial elite and the creation of real value through the production of goods has reached unprecedented heights. A financial aristocracy is concentrating ever more obscene levels of personal wealth in its hands entirely on the basis of financial speculation and manipulation, while the real economy continues to stagnate and decline.
The stock and bond markets are themselves mechanisms for economic parasitism and the further transfer of social wealth from the bottom to the top.
Second, the fundamental drive of capitalism, as Marx explained 146 years ago, to pile up wealth at one pole of society and poverty, misery and degradation at the other, is operating almost without restraint. The current stock bonanza reflects an explosive intensification of class tensions.
In the midst of the worst economic crisis since the Great Depression of the 1930s, the Dow has gained over 8,500 points, surging nearly 130 percent since it bottomed at 6,547 on March 9, 2009. That period of three years and two months has been an unmitigated disaster for the bulk of humanity, including the broad mass of working people in the United States.
The social disaster has worsened this year even as stock markets in the US and around the world continued their manic rise. Economic growth and job creation in the US have slowed from their already anemic pace, condemning millions of workers and youth to permanent unemployment or sweatshop jobs at poverty-level wages.
Unemployment in Europe, already at postwar record highs,
This article originally appeared on : World Socialist Web Site