Could the currently inflated stock market have a value correction without hurting the economy? So could stock prices fall drastically while keeping unemployment low?
Goes like this
1.stock market crashes
2. Government getting much less $ from capital gains tax
3. Raises other taxes
4. Cannot afford said taxes, lay off workers
>>1452702
okay but could there be a scenario where the stock market corrects its value without a crash? Like a gradual dip down to its proper value?
Also doesn't it take years for tax rates and tax law to change?
>>1452734
It's called a bear market.
>>1452734
>doesn't it take years for tax rates and tax law to change?
Sometimes, but if they want that sweet tax money, they usually find a way to speed things up. They'll even make laws retroactive if they have to, so watch your Roth IRA.