When has the future ever been certain? Sound like an excuse, to me.jonny5;1061407442]Because the future is uncertain,They HAVE seen a huge increase in profits. Enough to offset an unknown list of costs due to regulation? How do they know this? Simple.and they have not seen an increase in profits to offset the costs they will be assuming as a result of inflation, obamacare, higher taxes, and tons of new regulations.
They don't. I believe most companies...large ones, anyway, are USING a flagging economy, even just a PERCEIVED flagging economy, as an excuse to decrease overhead, in order to maximize profits. I'll use my own company as an example. BJ's Wholesale has been doing a BOOMING business in the past couple of years. Yet pay has been frozen. They FINALLY let the low and mid level employees on the store level to get raises again...but they have now frozen the incomes of the senior store level managers...the general managers, the district and regionals, etc, and laid off over 80 managers in my region alone. Meanwhile, the compensation for the executive level at corporate has gone up over 6% this past year, and their bonus, being directly tied to payroll, I have to imagine, has gone up severely. BJ's stocks? Doing GREAT.
I'll wager that a LOT of other people can attest to their own companies doing the same ****.
Struggling to survive indeed.
How does public spending affect companies, so long as their tax liabilities don't increase. And they aren't. How does the US deficit affect companies, again, beyond their tax liabilities?
As for someone else's compensation, it affects me, when you stop to consider that their record bonuses come at the expense of payroll to the rest of us within that company. It affects me when their pay is what is causing a company to be less solvent. How many times you gotta watch companies go down in flames while the brass make out like ****ing bandits, before you start to realize that the so called bastions of capitalism only really care about themselves, and are more than willing to bend and break the rules, and screw millions, the line their own pockets? How many times you gotta watch that happen, before you determine that continuing on that path is detrimental to our economy?
To explain: $10,000,000 given to one person probably will not get spent within a year or even 10, but $10,000,000 given to 10,000,000 people will probably get spent dozens of times over in a year. In the first scenario, the 10 mil is effectively out of the economy. It's not being used to purchase goods or services. In the latter scenario, that money is continually being used to purchase goods and services though. It's transferring hands over and over again. It benefits many more people.
Tucker Case - Tard magnet.
US Economy Shrinks 0.1 Pct., 1st Time in 3½ Years - ABC News
"Frankly, this is the best-looking contraction in U.S. GDP you'll ever see," Paul Ashworth, an economist at Capital Economics, said in a note to clients. "The drag from defense spending and inventories is a one-off. The rest of the report is all encouraging.”
The inventory growth being off might have something to do with the uncertainty over “fiscal cliff”. Unfortunately that has not been fully dealt with yet, the spending cut portion was just postponed to March.