New Economic Update (buy, companies, tax, financial)

[user_id]

Originally Posted by RedNC

As usual you are all over the place.

You are free to disagree, but my positions are rather consistent. If you think they are "all over the place" then you are not understanding them.

Originally Posted by RedNC

Misallocated? Is that your way of saying they sent the jobs overseas?

Huh? No. I mean that labor has missallocated itself. There is an over supply of labor in some industries and this has resulted in a high unemployment rate.

Originally Posted by RedNC

They did that because that was the only thing they could do after their job was "outsourced".

No, they did it because these were the "hot" fields. There were other fields that had an under supply of labor at the same time (e.g., health industry). Americans tend to pursue "get rich quick" sort of careers and this tendency can amplify movements in labor allocation.

Originally Posted by RedNC

Realign to what?

To a new equilibrium. Look at all the major indicators, its already occurring.

Economies will always realign, they are living and active systems. Even Keynes would agree that eventually wages and prices would adjust to a new equilibrium. There problem for him was that he correctly noted that prices are sticky, so in the shortish term there can be a general glut.

For whatever reason you guys want to believe that the nation is doomed and everyone is going to be eating beans and rice. Now, if you want to accept that fate that's fine, but I and millions of others will not.

[user_id]

Originally Posted by Stac2007

IWhat about the white collar jobs which kept the plants running? Managers, IT people, accountants, secretaries all lost their jobs.

I said low-skill labor, and many of these people are low-skill. You see, some people equate having a college degree with having skill, I do not. There are just as many low-skill white collar jobs as blue collar jobs.

Originally Posted by Stac2007

By saying you are making money off of job outsourcing this means you don’t really care about people.

I have never said I make money off job outsourcing, I don't do such. I do import all sorts of foreign finished and unfinished goods though.

Regardless, businesses are not charities. They care about their profits and what is good for them. To what degree they can outsource work is limited. This is the thing that all of you guys fail to understand, we are not using a gold standard anymore. The global currency system is a collection of fiat currencies. The only way a US company can pay a foreign worker or business is if there is someone willing to convert US dollars into his/her currency. A US dollar otherwise is just a piece of paper.

[Stac2007]

Originally Posted by user_id

I said low-skill labor, and many of these people are low-skill. You see, some people equate having a college degree with having skill, I do not. There are just as many low-skill white collar jobs as blue collar jobs.


I have never said I make money off job outsourcing, I don't do such. I do import all sorts of foreign finished and unfinished goods though.

Regardless, businesses are not charities. They care about their profits and what is good for them. To what degree they can outsource work is limited. This is the thing that all of you guys fail to understand, we are not using a gold standard anymore. The global currency system is a collection of fiat currencies. The only way a US company can pay a foreign worker or business is if there is someone willing to convert US dollars into his/her currency. A US dollar otherwise is just a piece of paper.

You sound like a broken record. I put a monies bet if you create a poll by asking what needs to be done to get this economy turned around, bring back jobs to the U.S. would be the most popular choice. My friend you opinion is in the minority. You spend most of your time defending your position by more than a few people.

[user_id]

Originally Posted by Stac2007

I put a monies bet if you create a poll by asking what needs to be done to get this economy turned around, bring back jobs to the U.S. would be the most popular choice.

But who cares? Just because the majority of the people think something does not make it true. The majority does not even understand basic economics, what they think is immaterial.

[GraniteStater]

The economic update does indicate that the economy in Nebraska is going strong with Omaha and Lincoln both around 5% unemployment or less.

[GraniteStater]

Originally Posted by user_id

Actually the numbers are already starting to improve. Initial claims (for unemployment) have been declining for a bit now and continued claims just started to move downward. But both of these figures are still both beyond non-recession levels though, but they seem to hit their peak and are moving down:

WeeklyClaimsJune18.jpg (image)

Anyhow, the unemployment rate is unlikely to improve in a few months. It should keep raising (or stay the same) well into 2010, where as the recession has a good chance of ending this year. Most economists suggest this will be a "jobless recovery" so the unemployment rate could be elevated for many years.

I see several sources now that say it unemployment will remain elevated throughout 2010.
Some states will fare much worse than others...

[Stac2007]

Originally Posted by user_id

But who cares? Just because the majority of the people think something does not make it true. The majority does not even understand basic economics, what they think is immaterial.

And you understand economics? I took macro and micro economics in college and understand it well. By the way my college economics professor predicted this crisis back in the early 90's so I guess he was right and you are in the dark.

[subsound]

Originally Posted by Stac2007

And you understand economics? I took macro and micro economics in college and understand it well. By the way my college economics professor predicted this crisis back in the early 90's so I guess he was right and you are in the dark.

Want to throw around credentials, use some better ones then taking 2 econ classes. By that logic you must bow before my Ungrad in Econ, MBA, and doing corporate financial work for nearly 10 years. The thing is your professor said his answer (hopefully he at least explained to you why he thought so) and you did not predict it...even then, I haven't heard "My teacher said X" as a reasoning since I was in middle school.

What the majority think is pretty much immaterial, they just jump from fad to fad regurgitating what the pundits throw out there without any understanding of the why. The majority of the same people who are diving into simple living now were buying houses using complex ARM products in 2005, buying tech shares in 1999...those who understand what's going on moved outside of fads.

I like Robert Kiyosaki, who kind of ignited the housing fad origonally then was ignored when he started pointing and saying it was overvalued and get out. Largely because his first mantra is educate yourself and your family, you are your best investment...plus that, and I quote “Most people are poor because when it comes to investing, the world is filled with Chicken Littles running around yelling, ‘The sky is falling. The sky is falling.’”. I don't always agree with his investment logic, he has little technical background, but I give a fair shake on the idea of social engineering...people move in droves like a wave, you get in early you can ride it.

[Stac2007]

Originally Posted by subsound

Want to throw around credentials, use some better ones then taking 2 econ classes. By that logic you must bow before my Ungrad in Econ, MBA, and doing corporate financial work for nearly 10 years. The thing is your professor said his answer (hopefully he at least explained to you why he thought so) and you did not predict it...even then, I haven't heard "My teacher said X" as a reasoning since I was in middle school.

What the majority think is pretty much immaterial, they just jump from fad to fad regurgitating what the pundits throw out there without any understanding of the why. The majority of the same people who are diving into simple living now were buying houses using complex ARM products in 2005, buying tech shares in 1999...those who understand what's going on moved outside of fads.

I like Robert Kiyosaki, who kind of ignited the housing fad origonally then was ignored when he started pointing and saying it was overvalued and get out. Largely because his first mantra is educate yourself and your family, you are your best investment...plus that, and I quote “Most people are poor because when it comes to investing, the world is filled with Chicken Littles running around yelling, ‘The sky is falling. The sky is falling.’”. I don't always agree with his investment logic, he has little technical background, but I give a fair shake on the idea of social engineering...people move in droves like a wave, you get in early you can ride it.

I don't bow down to your so called business sense or any of the idiots on Wall Street who got us in this mess. If you were so bright how come you did not see this one coming? Please save your knowledge for yourself. No one is buying it now. As far as the majority, they listened to the advice of people who were EXPERTS. Look where it got them. You wonder why they and myself see people like you as greed mongers.

My economic professor who lectures at Rutgers said outsourcing too many jobs would rob the country of vital government tax revenue. Even a so called EXPERT like your self could understand that. In addition he knew that the only way our countries economy would continue would be by using credit. He was right on both issues. Retail is down, people are defaulting on all levels of consumer credit and unemployment is rising. What do you make of all that?

[rubber_factory]

Originally Posted by montanamom

And why was so much of our economy for so long tied to real estate (houses primarily)? Because it was the biggest commodity we still made and manufactured here in this country.

I disagree.

Our economy was driven by real estate/housing/development due to a cocktail of low interest rates, implicit gov't backing of mortgages by Fannie Mae/Freddie Mac, financial deregulation, pro-housing tax policy, and American financial illiteracy.

It was not the only option for investment, it was simply the investment that our politicians tried to funnel American capital into, causing a bubble.

We subsidize Americans' investments into unproductive housing, while we penalize people who invest in, or run productive businesses. Only an American homeowner could support such a ridiculous scheme. But guess what? American homeowners sure do make up a fat, juicy voting bloc...