To The Contrary with Charlie Sykes Justin Wolfers: The Erosion of Democratic Institutions
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Oct 26, 2025 
Justin Wolfers, an economist and public intellectual, explores the curious gap between Wall Street’s bullish sentiment and Main Street’s apprehension. He delves into the effects of Trump’s tariffs, the political ramifications of Argentina’s bailout, and the insidious nature of crony capitalism. Wolfers emphasizes that democratic erosion may threaten long-term prosperity more than anything else, citing examples of institutional decay in the U.S. and urging a revitalization of inclusive policies to support the working class.
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Stocks Reflect Capital's Prospects
- The stock market reflects bets on future profits and the returns to capital more than current labor conditions.
- Stocks can rise while most workers see no benefit if policy favors large incumbent firms or capital over labor.
Big Winners Aren't The Whole Economy
- Recent market gains largely help large, existing firms rather than small businesses or new entrants.
- Crony-style intervention that privileges incumbents can raise stocks without growing the overall pie.
Measure Stocks In Other Currencies
- Evaluate stock performance in multiple currencies to separate domestic gains from dollar weakness.
- Check whether US stock gains vanish when measured in euros, yen, or pesos before celebrating.