How Does Market Plunge Affect Economy as a Whole?

The Takeaway

How closely tied are the financial markets to the economy at large?  In reaction to the country’s credit rating downgrade on Friday the markets had their worst day since the 2008 financial crisis yesterday as the Dow Jones dropped about 635 points and the Nasdaq was down 175.  But do these numbers affect our country’s ability to create jobs? Do they have any meaningful relationship to consumer confidence, the arguable engine of our economy? For the answer we’re joined now by Charlie Herman,  economics and business editor for The Takeaway and our co-producer WNYC Radio.
Torya Blanchard, owner of “Good Girls Go to Paris Crepes,” a small business in Detroit; and  Michael Dimarino, a manufacturer in Red Hook, talk to us about how the market dip is affecting their businesses.

Will you support The World today?

The story you just read is not locked behind a paywall because listeners and readers like you generously support our nonprofit newsroom. If you’ve been thinking about making a donation, this is the best time to do it. Your support will get our fundraiser off to a solid start and help keep our newsroom on strong footing. If you believe in our work, will you give today? We need your help now more than ever!