Re: Re: Re: Re: Re: "Fear and insecurity" over the1955 bull market

[Brad De Long]

>Brad De Long wrote:
>
>>Why is this a good unconventional measure? I would prefer the total
>>market capitalization of the S&P 500 divided by the companies' total
>>annual wage bill...
>
>Conceptually, the S&P 500 is the price of a share of blue-chip
>corporate America. So, dividing it by the average wage would tell you
>how long it would take for the average worker to buy a representative
>share of big U.S. capital. It's propagandistically nice for those of
>us who remember those charts of how long it would take a Soviet vs. a
>U.S. worker to buy a pair shoes. Speaking of which, it'd be
>interesting to see a chart of how long it'd take a Nike worker to buy
>a pair of Nike shoes.
>
>Doug

Yeah, but how large a representative share? If companies pay dividends
which they fund by issuing stock,  your measure goes down without anything
fundamental changing.

*My* unconventional measure tells how much the stock market values the
labor associated with $1 worth of labor power....