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So we spend billions saving wall street in the hopes that wall street will be saved and start hiring people again. Technically that would have worked in a traditional economic sense. The recession hurt the businesses profitability so they fire people in order to save money. Now the recession is over (for most businesses) and they are back to earning their billions. In a economic sense this would mean that businesses could spend the profits to expand. Oh and they are expanding except they are spending the billions in China and india. They need to expand production, build a new factory in china. They need to hire software engineers, engineers etc, build an office in India.
I remember recently there was an article that stated something along the lines of how we spend stimulus money (in order to create US jobs). We spend the money, the Chinese build the turbines, they get shipped to the US, trucked to the location and then installed at the location. Only a small percentage of the stimulus money went to the truckers and construction workers. Sign of the times I guess.
I already answered this question in a previous thread:
Companies are saving their cash. Most have seen improving revenues and cash flows, but they haven't been hiring much. The reason I think is because there is still so much "unknown." Companies don't know what their taxes will be because there is no clear answer from the White House nor agreement within the House or Senate. There is no clear answer what the cost of providing health insurance to full-time employees will be starting in 2014. There are so many unknown policies forming and not forming in the White House that companies are scared ****less about the future, so instead of using their revenue increases to hire more employees, they are building up their cash.
its a topic thats so complex that i couldnt even have an opinion. typically under more normal recessions there isnt a big drop in unemployment until around 3-4 years later..
why that is is so complex and involves aspects most of us dont know,dont understand and arent even aware of... if the authorities on this stuff cant figure it out what hope do we have to even have an opinion.
What's sad is because we are printing so much money and our lending policies have been so lax the past 20 years there has been so much capital flight. Businesses and investors aka the rich wallstreet pukes realize this. They are investing and sending money overseas to places like India, China, the middle east because they no the American consumer is finally tapped out. This recession isn't going to be over any time soon. It's only just beginning. The American economy and our country is changing forever. When you see the next generation worse off than the last as far as job security, wealth, standard of living etc...you know your country has turned the corner for the worse. Corporations have been selling us out for decades through the power of our government and elected officials. Anyone who blames the left or the right or the dems or repubs hasn't been paying attention. Reagan was as bad as Clinton who was as bad as Bush who was as bad or is as bad as Obama. If you think about it......as individuals many of us don't deserve what's happening to our country.......but COLLECTIVELY we deserve exactly what's coming our way. We have been living high on the hog for a century. Plundering and pillaging the rest of the world through force. America is the aging bully.
Companies are saving their cash. Most have seen improving revenues and cash flows, but they haven't been hiring much. The reason I think is because there is still so much "unknown." Companies don't know what their taxes will be because there is no clear answer from the White House nor agreement within the House or Senate. There is no clear answer what the cost of providing health insurance to full-time employees will be starting in 2014. There are so many unknown policies forming and not forming in the White House that companies are scared ****less about the future, so instead of using their revenue increases to hire more employees, they are building up their cash.
Since when has the economy not been always drastically changing. Seems like there is a new set of laws every single year: Sarbanes Oxley, ADA, new employment laws etc etc. Yes, some of the reason companies aren't hiring is because they are holding on to their cash but personally I think that is a small factor.
What's sad is because we are printing so much money and our lending policies have been so lax the past 20 years there has been so much capital flight. Businesses and investors aka the rich wallstreet pukes realize this. They are investing and sending money overseas to places like India, China, the middle east because they no the American consumer is finally tapped out. This recession isn't going to be over any time soon. It's only just beginning. The American economy and our country is changing forever. When you see the next generation worse off than the last as far as job security, wealth, standard of living etc...you know your country has turned the corner for the worse. Corporations have been selling us out for decades through the power of our government and elected officials. Anyone who blames the left or the right or the dems or repubs hasn't been paying attention. Reagan was as bad as Clinton who was as bad as Bush who was as bad or is as bad as Obama. If you think about it......as individuals many of us don't deserve what's happening to our country.......but COLLECTIVELY we deserve exactly what's coming our way. We have been living high on the hog for a century. Plundering and pillaging the rest of the world through force. America is the aging bully.
yup, all very good points. Times are changing for the USA, for the worse.
I already answered this question in a previous thread:
Companies are saving their cash. Most have seen improving revenues and cash flows, but they haven't been hiring much. The reason I think is because there is still so much "unknown." Companies don't know what their taxes will be because there is no clear answer from the White House nor agreement within the House or Senate. There is no clear answer what the cost of providing health insurance to full-time employees will be starting in 2014. There are so many unknown policies forming and not forming in the White House that companies are scared ****less about the future, so instead of using their revenue increases to hire more employees, they are building up their cash.
I couldn't agree more, not because I said the same thing in another thread on companies hoarding cash, but because it's true.
Uncertainty, and that's what we have here, is never good.
If we had a leader in the White House, a leader would say "yea or nay" on the extension or expiration of the tax cuts.
Instead, that has become a political tool. I think we know the answer, sort of.
Obama intends to let the tax cuts expire, but he won't publicly say that for fear that it will harm the Democrats in the elections.
Businesses are content to sit and wait until after the elections. A definitive answer on the tax cuts is incredibly important, because it will determine a company's revenues for the year.
If the tax cuts expire, then everyone feels that in the very first paycheck for 2011. Someone making $10/hour is going to lose $20 of disposable income that week, and $80 for the month.
So who gets cut out? Electronics? Cable/Satellite? High end retail? Clothing? Auto? Restaurants?
Someone is going to lose revenues.
And then Obamacare is a real issue.
It mandates minimum coverage and then mandates the minimum percentage the employer must pay. For the majority of businesses, it would be cheaper to drop coverage, tell the employees their on their own as far as health care plans, and pay the fines.
And then the "recovery," well the real story is here:
So as you can see, there's a bit of inflation there.
I'm really kind of curious, because I don't really understand why the BEA would choose to use 2005 US Dollars as the constant. Normally you would use [year] 2000 US Dollars, but I suspect that would only show that inflation is much higher.
For too many years, the middle class has been living on working-class wages and making up the difference with credit. That isn't sustainable, especially given the fact that so many folks can't afford to pay off present debt, let alone more.
The Federal Reserve and big Wall Street banks want to raise housing prices back to "where they were before" and get the consumers spending again, borrowing again. Won't happen. They have to let the debt out of the system before they can fill it up again.
Until then, people aren't buying like before, and that spells unemployment/underemployment for the workers. Pretty basic.
What's that? Hire ten people and allow ten families a shot at survival?
They're responsible for their own survival. It isn't my job to hold their hand through every second of their life to make sure they make sound financial decisions.
Quote:
Originally Posted by Nor'Eastah
For too many years, the middle class has been living on working-class wages and making up the difference with credit.
That's because the Middle Class wanted to do that. No one held a gun to their heads and made them do that.
What idiot is so pathetic they can't save money for 6 months to pay cash for a big screen TV instead of buying it on credit and paying 2-3 times its value?
Hoy ****, watching TV on a 27" screen? The horror....the horror...
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