The Price of Wheat Doesn’t Tell Us About the Strength of the Economy and Neither Does the Stock Market: Why Is This so Hard for Intellectual Types to Understand?

The stock market tells us about the expected value of future after-tax corporate profits. At least, that is when it tells us anything at all.

That is not radical lefty ranting, that is from the Econ textbook. If the economy is expected to boom next year, because Joe Biden is going to use the revenue from a big corporate profits tax to finance huge investment in green projects, there is no reason to expect the stock market to rise. People will not pay more money for shares of Microsoft, GE, or an...