Regarding yesterday’s letter (“Who’s Winning? Follow the numbers,” Nov. 17), the Dow Jones Industrial Average going from 1,000 to 33,436 (these numbers do not represent money) over 50 years is not a return of 3,253.6%. Using a time value of money calculation, it represents an average annual return of about 7%. And median household income going from $11,120 to $70,784 over 50 years is, using the same method of calculation, a return of about 4% per year.
Furthermore, the Dow Jones Average is not necessarily a measure of corporate wealth and household income is not a measure of people’s wealth. Wealth and income are different things.
The Dow Jones industrial average represents the price of a basket of stocks which can be purchased by anyone. If the letter writer isn’t growing his wealth by investing some of his income in the stock market, that’s his fault. It’s not the fault of corporations that people don’t elect to participate in the growth of American industry. There are problems with industry but this is not the right argument.
Rob Glenn
Harpswell
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