Dow 50,000: A Supply-Side Miracle, by Stephen Moore

When I first arrived in Washington in 1982, the Dow Jones hit a low of 800. You may not believe that, so feel free to look it up.

If anyone had predicted that in a little more four decades the Dow would surpass 50,000, they might have been admitted into a mental institution. But U.S. stocks have grown 60-fold (not counting inflation). Even accounting for inflation, the Dow is up about 12-fold.

We have lived through the greatest period of wealth creation in perhaps the history of the world.

No other nation has come even close in modern times. Consider that American publicly traded companies are now worth more than $70 trillion.

Is China catching up? Yes, but they’ve got a lot of work to do despite having four times more people than we do. The market cap of all Chinese companies is estimated at roughly $11 trillion. The market cap of all European Union countries is roughly $16 trillion. Japan’s companies are worth $7 trillion.

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