At the Guardian, Ha-Joon Chang writes about the U.S. stock market:
The situation is even more worrying in the U.S. In March 2013, the Standard & Poor's 500 stock market index reached the highest ever level, surpassing the 2007 peak (which was higher than the peak during the dotcom boom), despite the fact that the country's per capita income had not yet recovered to its 2007 level. Since then, the index has risen about 20 percent, although the U.S. per capita income has not increased even by 2 percent during the same period. This is definitely the biggest stock market bubble in modern history.
Biggest bubble in modern history, really? Nope. Always remember folks, when we're talking stock market values, you have to adjust for inflation. Dig a chart of the S&P 500 so adjusted (courtesy of @squarelyrooted):
Is that a bubble? Well, could be. I'd say Chang is right in the end — the priority should continue to be to revive the real economy regardless of what the stock market is doing. But before we get too worked up about bubbles, we ought make sure we're looking at the right chart.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
The most downloaded country song in the US is AI-generatedUnder the radar Both the song and artist appear to be entirely the creation of artificial intelligence
-
The week’s best photosIn Pictures A blindfolded giraffe, an icy unicorn, and more
-
Crossword: November 21, 2025The daily crossword from The Week
-
Nobody seems surprised Wagner's Prigozhin died under suspicious circumstancesSpeed Read
-
Western mountain climbers allegedly left Pakistani porter to die on K2Speed Read
-
'Circular saw blades' divide controversial Rio Grande buoys installed by Texas governorSpeed Read
-
Los Angeles city workers stage 1-day walkout over labor conditionsSpeed Read
-
Mega Millions jackpot climbs to an estimated $1.55 billionSpeed Read
-
Bangladesh dealing with worst dengue fever outbreak on recordSpeed Read
-
Glacial outburst flooding in Juneau destroys homesSpeed Read
-
Scotland seeking 'monster hunters' to search for fabled Loch Ness creatureSpeed Read
