User:EmilyGirven03/sandbox

The ownership of stocks has changed for the worse and for the better over the course of many years. In my section, "U.S Stock Market Ownership Distribution , it showed an abundance of data of the wealthy people who owned stocks. I was curious as to why it was only showing data on the higher class of society. However, after doing research I realized it was because the stock market is like gambling. The higher class people do not need the extra money, or disposable income to live on. They are able to take that risk of either gaining or losing money. Unlike the lower class people who have a less disposable income where they need all of their money to get by. For example, in the article, "Trends in the Distribution of Stock Ownership, the quality of the stock reflects on the quality of the owner. The divided income has changed over the course of a few years and is dwindling to people who have higher incomes. In 2008 when Obama was in office the stock market took a big drop similar to when the stock market dropped during the Great Depression. As stated in the article, "Stock Ownership Patterns, Stock Market Fluctuations, and Consumptions", the effect of wealth should have a positive effect on consumptions. This may fail to provide the fact that there may be an increase in stock prices as an outcome of a reduction of real interest rates. Towards the end of 2008 it started to slowly increase and by 2016 when Donald Trump went into office the stock market was the best it had ever been. Trump was a businessman which was a great asset to have had as a president because he was able to keep it increasing while still keeping it under control. America had the best increase in the stock market in 2016 to 2020. It was the biggest increase since the Great Recession. Unfortunately, in 2020 Biden won the Presidential Election and everything just crumbled. Everything went up in prices quickly. The price of diesel fuel was over six dollars, and you could not buy a gallon of milk for anything less than five dollars. Buying groceries took up your entire paycheck for the week. Interest rates were starting to increase as well. When Trump was still in office the interest rates were in the low three's and now since Biden has come into office they are in the high sixes almost sevens. These high interest rates cause the increase in prices to purchase a house. The stock market once again started crashing. It was almost as low as it was in 2008. People started turning their stocks into long term bonds so they wouldn't lose any money, however doing this made them gain little money from stocks. In 2020 the entire world experienced a global pandemic known as COVID-19. This pandemic played a huge role in the stock market crashing. Everything was getting shut down including giant factories that produced the necessities we needed for our everyday lives. Many people became unemployed because so many places were getting shut down since everyone except the essential workers had to quarantine. In the article, " Stock Market Wealth and Consumption", it explains how the multiple categories about how consumer spending combined with the development of the stock market's wealth creates the, "wealth effect." Inflation went up tremendously due to overspending in order for people to create a vaccine for this pandemic and for supplies to get the world back to somewhat normal.