<h1 class="subject">What's a bigger problem high unemployment or a low Dow Jones Industrial average?</h1>

Is it better if stock prices are low but people have jobs,

or

if people don't have jobs but stock prices are high?

High unemployment is the bigger problem.

The DJIA is an indicator of corporate economic well being which is affected by employment or unemployment. That's because the number of people who are gainfully employed above the poverty line gives you an indication of how much disposable income consumers have to save or invest in financial products, or to spend on general goods and services, or to pay down debt.

The sum total of these activities directly affect the earnings of publicly traded companies, and this eventually leads to a higher or lower DJIA. If enough people don't have enough good paying jobs, then the DJIA will come down to reflect the equilibrium that is not enough aggregate demand and too much supply in the aggregate.

High unemployment is a MUCH bigger problem! If you compound the problem with high stock prices. Stocks have no where to go except down. People who own them will lose fortunes.

When unemployment is high, people don't save, buy goods and services or invest. The stock market will dive.

A low stock market and high employment is an investors dream. It is a golden opportunity to invest in bargain stocks. Stocks will soar and investors will make a fortune.

In economic terms, low prices are the cure to deflation.

The stock market is an indicator of how one part of the economy is functioning, but a poor indicator of the economy overall.

Unemployment is a good indicator of the economy as a whole.

So unemployment.

Generally the Dow Jones Industrial Average reflects the economy. If consumers don't spend unemployment rises. Businesses rely on consumers to spend so that they can pay their employees. No spending equals no jobs.

There is a relationship between the DJIA and jobs---if it gets low unemployment rises--so when the DJIA rises there is hope that unemployment goes lower.....

High unemployment by a long shot. But falling stock values leads directly to higher unemployment, so parsing them into separate problems is a bit tricky.

High unemployment since people are force to live off unemployment benifits which drains the budget and is not replaced with income being with held.

I think the root situation is defiantly jobs - allot of good paying jobs would bring up the stock market.

They go hand in hand..

However unemployment is the biggest.

unemployment. no one working can not buy products or good which make the market go down.

You don't think they might be related? Fix unemployment. The Dow will correct itself.