Eli5; Why is the US economy so dictated by the ups & downs of Wall Street?

Question

Eli5; Why is the US economy so dictated by the ups & downs of Wall Street?

In: 15

Answer 1

Since the U.S dollar isn’t backed by anything other than the governments promise of saying it is worth what its worth ( the gold standard hasn’t applied for a long time). The U.S economy depends on the stock market because they are looking for foreign investors to pay the way.