Recovery in U.S. Lifting Profits, Not Adding Jobs

[TruthOut10]

With the Dow Jones industrial average flirting with a record high, the split between American workers and the companies that employ them is widening and could worsen in the next few months as federal budget cuts take hold.

That gulf helps explain why stock markets are thriving even as the economy is barely growing and unemployment remains stubbornly high.

With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers.

“So far in this recovery, corporations have captured an unusually high share of the income gains,” said Ethan Harris, co-head of global economics at Bank of America Merrill Lynch. “The U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.”

The result has been a golden age for corporate profits, especially among multinational giants that are also benefiting from faster growth in emerging economies like China and India.

These factors, along with the Federal Reserve’s efforts to keep interest rates ultralow and encourage investors to put more money into riskier assets, prompted traders to send the Dow past 14,000 to within 75 points of a record high last week.

While buoyant earnings are rewarded by investors and make American companies more competitive globally, they have not translated into additional jobs at home.

http://www.nytimes.com/2013/03/04/b...?nl=todaysheadlines&emc=edit_th_20130304&_r=0

 

[Avorysuds]

Ask Obama to stop having the FED dump 40 billion a month on the markets. In a year or 2 we will be growing just fine... Or we could do that whole great depression thing over again.

 

[EdwardBaiamonte]

With the Dow Jones industrial average flirting with a record high, the split between American workers and the companies that employ them is widening and could worsen in the next few months as federal budget cuts take hold.

That gulf helps explain why stock markets are thriving even as the economy is barely growing and unemployment remains stubbornly high.

With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers.

“So far in this recovery, corporations have captured an unusually high share of the income gains,” said Ethan Harris, co-head of global economics at Bank of America Merrill Lynch. “The U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.”

The result has been a golden age for corporate profits, especially among multinational giants that are also benefiting from faster growth in emerging economies like China and India.

These factors, along with the Federal Reserve’s efforts to keep interest rates ultralow and encourage investors to put more money into riskier assets, prompted traders to send the Dow past 14,000 to within 75 points of a record high last week.

While buoyant earnings are rewarded by investors and make American companies more competitive globally, they have not translated into additional jobs at home.

http://www.nytimes.com/2013/03/04/b...?nl=todaysheadlines&emc=edit_th_20130304&_r=0

millions of new jobs would be easy:
1) Make unions illegal ( 10 million new jobs) Democrats oppose

2) make minimum wage illegal ( 5 million new jobs) Democrats oppose

3) end business taxation; especially tax incentives to off-shore jobs ( 5 million new jobs) Democrats oppose

4) make inflation illegal ( 2 million new jobs) Democrats oppose


5) make Federal debt illegal( 2 million new jobs) Democrats oppose

6) send illegal workers home(8 million new jobs) Democrats oppose

7) Pass Balanced Budget Amendment to Constitution( 3 million new jobs) Democrats oppose

8) cut pay of government workers in half( 4 million new jobs) Democrats oppose

9) Make health insurance competition legal( 6 million new jobs) Democrats oppose

10) end needless business regulations ( 2 million new jobs) Democrats oppose

11) restrict Federal spending to 15% of GNP( 2 million new jobs) Democrats oppose

12) support unlimited free trade( 2 million new jobs) Democrats oppose

13) reduced unemployment compensation, welfare, food stamps, medicaid.( 2 million new jobs) Democrats oppose

14) privatize education, social security ( 4 million new jobs) Democrats oppose

15) end payroll taxes ( 1 million new jobs) Democrats oppose

Since Democrats always oppose wisdom and common sense the only serious option is to make them illegal as the Constitution intended.

 

[boedicca]

Recovery? What recovery?

The economy is growing only a tad over 1%. The stock market is Not The Economy.

 

[Mr. H.]

http://www.usmessageboard.com/politics/281699-job-creation-more-like-food-stamp-creation.html

 

[EdwardBaiamonte]

http://www.usmessageboard.com/politics/281699-job-creation-more-like-food-stamp-creation.html

we know where jobs come from, they come from Republican supply siders who invent or supply things and then hire people to make and sell them.

Democrats discourage supply so discourage jobs, and encourage food stamps and disability and welfare.

 

[Mr. H.]

Obama has failed to build an atmosphere of confidence in the economy, in the country, in our society, in the individual.

1344 days, 15 hours, 11 minutes...

 

[EdwardBaiamonte]

Obama has failed to build an atmosphere of confidence in the economy, in the country, in our society, in the individual.

1344 days, 15 hours, 11 minutes...

Not so surprising given this is America while he had 2 communist parents and voted to the left of Bernie Sanders.

He was elected because he was black and doesn't make liberals feel bad about slavery. He said in his book that being a non angry black man really worked with guilt ridden nutty white liberals!!

The down side is they like it as he sticks the knife into Jeffersonian America deeper and deeper.

 

[Mr. H.]

The Chinese take their money and put it in domestic real estate.
Americans are putting their money in the stock market.

Chinese real estate projects are financed by their government.
Americans are putting their money in private enterprise.

 

[oldernwiser]

With the Dow Jones industrial average flirting with a record high, the split between American workers and the companies that employ them is widening and could worsen in the next few months as federal budget cuts take hold.

That gulf helps explain why stock markets are thriving even as the economy is barely growing and unemployment remains stubbornly high.

With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers.

“So far in this recovery, corporations have captured an unusually high share of the income gains,” said Ethan Harris, co-head of global economics at Bank of America Merrill Lynch. “The U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.”

The result has been a golden age for corporate profits, especially among multinational giants that are also benefiting from faster growth in emerging economies like China and India.

These factors, along with the Federal Reserve’s efforts to keep interest rates ultralow and encourage investors to put more money into riskier assets, prompted traders to send the Dow past 14,000 to within 75 points of a record high last week.

While buoyant earnings are rewarded by investors and make American companies more competitive globally, they have not translated into additional jobs at home.

http://www.nytimes.com/2013/03/04/b...?nl=todaysheadlines&emc=edit_th_20130304&_r=0

millions of new jobs would be easy:
1) Make unions illegal ( 10 million new jobs) Democrats oppose

2) make minimum wage illegal ( 5 million new jobs) Democrats oppose

3) end business taxation; especially tax incentives to off-shore jobs ( 5 million new jobs) Democrats oppose

4) make inflation illegal ( 2 million new jobs) Democrats oppose


5) make Federal debt illegal( 2 million new jobs) Democrats oppose

6) send illegal workers home(8 million new jobs) Democrats oppose

7) Pass Balanced Budget Amendment to Constitution( 3 million new jobs) Democrats oppose

8) cut pay of government workers in half( 4 million new jobs) Democrats oppose

9) Make health insurance competition legal( 6 million new jobs) Democrats oppose

10) end needless business regulations ( 2 million new jobs) Democrats oppose

11) restrict Federal spending to 15% of GNP( 2 million new jobs) Democrats oppose

12) support unlimited free trade( 2 million new jobs) Democrats oppose

13) reduced unemployment compensation, welfare, food stamps, medicaid.( 2 million new jobs) Democrats oppose

14) privatize education, social security ( 4 million new jobs) Democrats oppose

15) end payroll taxes ( 1 million new jobs) Democrats oppose

Since Democrats always oppose wisdom and common sense the only serious option is to make them illegal as the Constitution intended.

Wow!

Problem solved - we disolve the government, pack up what canned goods we can lay our hands on, and head to the bunkers.

The numbers you gave seem to me to be more how many jobs would be lost, not gained.

 

[Mr. H.]

How do the Chinese propose moving the masses into their ghost towns?
They really are that stupid.

Take a poor person out of a shack, put him in a high-rise apartment, and what do you get?

A poor person in a high-rise apartment.

How many public housing projects in the U.S. have been decimated to ruin?

Cablini Gleen?

 

[oldernwiser]

With the Dow Jones industrial average flirting with a record high, the split between American workers and the companies that employ them is widening and could worsen in the next few months as federal budget cuts take hold.

That gulf helps explain why stock markets are thriving even as the economy is barely growing and unemployment remains stubbornly high.

With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers.

“So far in this recovery, corporations have captured an unusually high share of the income gains,” said Ethan Harris, co-head of global economics at Bank of America Merrill Lynch. “The U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.”

The result has been a golden age for corporate profits, especially among multinational giants that are also benefiting from faster growth in emerging economies like China and India.

These factors, along with the Federal Reserve’s efforts to keep interest rates ultralow and encourage investors to put more money into riskier assets, prompted traders to send the Dow past 14,000 to within 75 points of a record high last week.

While buoyant earnings are rewarded by investors and make American companies more competitive globally, they have not translated into additional jobs at home.

http://www.nytimes.com/2013/03/04/b...?nl=todaysheadlines&emc=edit_th_20130304&_r=0

This intrigues me for some reason. BofA paid no US taxes in 2011 because they were able to shelter all their funds off-shore - just as a great deal of our multinational corporations have been able to do (some actually able to post a loss here in the US and get a huge return). This same corporation now says that we need a recovery in the labor market to achieve an economic turnaround. If real funds are flowing out of the country faster than they can be printed, where does the money come from to hire a labor force?

We used to trade labor for goods and services, and the production of those goods and services induced investment in the companies producing them. It seems to me that since corporations can sit on their funds now until some politician declares another 1 year 5% tax holiday, they can hold their own stock prices as high as they like by buying up blocks (which they write off as a loss).

Corporate tax rates are at 35%, but I can't seem to find many who actually pay that much. Many companies (like Google and Facebook for instance) hide their funds in Ireland which had a 12% tax rate. These companies are moving their headquarters to Poland now that Ireland realized that a PO box doesn't hire anyone.

 

[EdwardBaiamonte]

Wow!

Problem solved - we disolve the government, pack up what canned goods we can lay our hands on, and head to the bunkers.

too stupid!! who said anything about disolving government????????

The numbers you gave seem to me to be more how many jobs would be lost, not gained.

why not present your best example or admit as a typical libturd you lack the IQ to do so.

 

[oldernwiser]

Wow!

Problem solved - we disolve the government, pack up what canned goods we can lay our hands on, and head to the bunkers.

too stupid!! who said anything about disolving government????????

You did, pretty much. Governments need revenue in order to operate. You called for the elimination of both personal income and business taxes - starving the beast in the extreme. So - what form of government could exist without an economic basis? Even our free-market capitalist society couldn't operate without government racking up some debt in order to provide us with the currency we need to pay for our labor, goods, and services.

The numbers you gave seem to me to be more how many jobs would be lost, not gained.

why not present your best example or admit as a typical libturd you lack the IQ to do so.

I'm not the one making absurd claims about job creation without providing a basis for my "facts". I'm not an economist, but it seems that neither are you. I do, however, possess an IQ high enough to actually question the validity of nearly every one of your claims - not because of my political leanings, but because they're pure BS pulled out of thin air.

 

[rdean]

With the Dow Jones industrial average flirting with a record high, the split between American workers and the companies that employ them is widening and could worsen in the next few months as federal budget cuts take hold.

That gulf helps explain why stock markets are thriving even as the economy is barely growing and unemployment remains stubbornly high.

With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers.

“So far in this recovery, corporations have captured an unusually high share of the income gains,” said Ethan Harris, co-head of global economics at Bank of America Merrill Lynch. “The U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.”

The result has been a golden age for corporate profits, especially among multinational giants that are also benefiting from faster growth in emerging economies like China and India.

These factors, along with the Federal Reserve’s efforts to keep interest rates ultralow and encourage investors to put more money into riskier assets, prompted traders to send the Dow past 14,000 to within 75 points of a record high last week.

While buoyant earnings are rewarded by investors and make American companies more competitive globally, they have not translated into additional jobs at home.

http://www.nytimes.com/2013/03/04/b...?nl=todaysheadlines&emc=edit_th_20130304&_r=0

I explained this in other threads. Even with links, right wingers simply don't get it.

Foxconn begins deploying one million Robots to build iPhones | DVICE

However, if the bulk of the work shifts to non-human workers in the next decade, it's reasonable to question what benefit there will be to keeping manufacturing in China rather than simply setting up robot factories in the U.S.

----------------------------------------------------------

We can't compete with people being paid $170 a month. No one is willing to work for that little money. Hell, we can't even get old and fat Republicans to pick fruit and vegetables for minimum wage.

So how do we win?

Because we have to be the ones designing the robots.
We have to be the ones building the robots.
We have to have the best infrastructure for moving product.

Unfortunately, not only do we have to fight foreign countries, but we have to fight Republicans who think education is for snobs and infrastructure is a waste of investment. They are determined to make sure we lose. Why? Because they believe their own rotten ideology.

 

[oldernwiser]

With the Dow Jones industrial average flirting with a record high, the split between American workers and the companies that employ them is widening and could worsen in the next few months as federal budget cuts take hold.

That gulf helps explain why stock markets are thriving even as the economy is barely growing and unemployment remains stubbornly high.

With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers.

“So far in this recovery, corporations have captured an unusually high share of the income gains,” said Ethan Harris, co-head of global economics at Bank of America Merrill Lynch. “The U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.”

The result has been a golden age for corporate profits, especially among multinational giants that are also benefiting from faster growth in emerging economies like China and India.

These factors, along with the Federal Reserve’s efforts to keep interest rates ultralow and encourage investors to put more money into riskier assets, prompted traders to send the Dow past 14,000 to within 75 points of a record high last week.

While buoyant earnings are rewarded by investors and make American companies more competitive globally, they have not translated into additional jobs at home.

http://www.nytimes.com/2013/03/04/b...?nl=todaysheadlines&emc=edit_th_20130304&_r=0

I explained this in other threads. Even with links, right wingers simply don't get it.

Foxconn begins deploying one million Robots to build iPhones | DVICE

However, if the bulk of the work shifts to non-human workers in the next decade, it's reasonable to question what benefit there will be to keeping manufacturing in China rather than simply setting up robot factories in the U.S.

----------------------------------------------------------

We can't compete with people being paid $170 a month. No one is willing to work for that little money. Hell, we can't even get old and fat Republicans to pick fruit and vegetables for minimum wage.

So how do we win?

Because we have to be the ones designing the robots.
We have to be the ones building the robots.
We have to have the best infrastructure for moving product.

Unfortunately, not only do we have to fight foreign countries, but we have to fight Republicans who think education is for snobs and infrastructure is a waste of investment. They are determined to make sure we lose. Why? Because they believe their own rotten ideology.

Yet another impediment is the fact that even though the most expensive component of any manufacturing process - direct human labor - is replaced by non-humans, the prices to the consumer are not similarly reduced. This further reduces the amount of disposable cash from the lower echelons where consumption is the key to continued manufacturing.

 

[EdwardBaiamonte]

the most expensive component of any manufacturing process - direct human labor - is replaced by non-humans, the prices to the consumer are not similarly reduced.

of course that is stupid and liberal. Under capitalism if a company does not pass the savings on to consumers another competitor will and the first company will be driven out of business. America has the most capitalism and so the richest consumers because of this process.

Welcome to your very first lesson in Economics 101!!

See why we are positive a liberal will be slow?

 

[rdean]

the most expensive component of any manufacturing process - direct human labor - is replaced by non-humans, the prices to the consumer are not similarly reduced.

of course that is stupid and liberal. Under capitalism if a company does not pass the savings on to consumers another competitor will and the first company will be driven out of business. America has the most capitalism and so the richest consumers because of this process.

Welcome to your very first lesson in Economics 101!!

See why we are positive a liberal will be slow?

It's your kind who aren't getting jobs you stupid fuck. Try to figure out why.

 

[EdwardBaiamonte]

the most expensive component of any manufacturing process - direct human labor - is replaced by non-humans, the prices to the consumer are not similarly reduced.

of course that is stupid and liberal. Under capitalism if a company does not pass the savings on to consumers another competitor will and the first company will be driven out of business. America has the most capitalism and so the richest consumers because of this process.

Welcome to your very first lesson in Economics 101!!

See why we are positive a liberal will be slow?

It's your kind who aren't getting jobs you stupid fuck. Try to figure out why.

??????????????????????If you cant think clearly you can write clearly. Sorry

 

[Oddball]

The Chinese take their money and put it in domestic real estate.
Americans are putting their money in the stock market.

Chinese real estate projects are financed by their government.
Americans are putting their money in private enterprise.

No, the Fed is pumping the money into the stock market.

The regular peeps are doing all they can just to pay the bills and keep roofs over their heads.