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The economic recovery turns 2: Feel better yet?

Yes many companies are doing well. A bunch of those are getting an increasing percent of their profits overseas. Watch the earning reports the next few weeks and the commentary about those earnings.

So what? The point remains that expansion is a perilous endeavor considering the uncertainty about future costs of production. Until we get stability there, we will not see job growth.
 
So what? The point remains that expansion is a perilous endeavor considering the uncertainty about future costs of production. Until we get stability there, we will not see job growth.

Not sure what you mean by uncertainty about future costs of production. What type of stability are you looking for?
 
Okay I know this may sound unreasonable .. but … we know company profits are up, we know CEO are doing very well, might a wiser thing to do …rather then demonize them, be to sit down and see what their concerns are about investing or expanding ? Then go to work on eliminating those concerns so they would start investing in expansion and jobs ? While I can agree that the middle class spending helps to grow our economy, I just can't see another way to expand that middle class with out their being more well paying (middle class) jobs available … and I also fail to see who is going to create those middle class jobs if not the wealthy and corporate America.
 
Okay I know this may sound unreasonable .. but … we know company profits are up, we know CEO are doing very well, might a wiser thing to do …rather then demonize them, be to sit down and see what their concerns are about investing or expanding ? Then go to work on eliminating those concerns so they would start investing in expansion and jobs ? While I can agree that the middle class spending helps to grow our economy, I just can't see another way to expand that middle class with out their being more well paying (middle class) jobs available … and I also fail to see who is going to create those middle class jobs if not the wealthy and corporate America.

What you say is reasonable. However the challenge is great when you talk about having companies expand headcount in the U.S. Try thinking about it like this. A CEO, who is responsible for ensuring his/her company is profitable looks at where to expand. We are talking about the large middle class, not the relatively few engineers who you can pay a lot to create the next new widget. A good illustration may be the competition between states for jobs. The federal reserve bank of Dallas has reported that 38% of new jobs since the recovery have been added in their location, which is essentially Texas.
 
Then you have to ask yourself why expansion isn't going on, because profit margins are great. Look at commodity price volatility, wild swings in monetary policy, threats of new taxes and regulations, etc.

People are paying down debt, and saving money rather then using it for consumption.

Investing will not go on long if the goods produced through said investments are not going to be consumed. When people overall are confident in the amount of debt/savings they have, a vigorous expansion will not occur. Investment without consumption is meaningless.
 
Except the poor typically don't know how to invest, and then there goes all of your growth.

No they buy things they need which fuels economic growth. You know, like the growth we haven't had because the lower income classes haven't had the money to buy things because most of the money is going to the top.
 
The middle class are. The rich typically do not invest large percentages of their money. They sit on it. And yes, I am assuming that giving the poor more money, after cost have been covered and it is done willingly (not minimum wage laws) would lead to economic expansion.

Case in point: The "rich" are getting richer right now. Economic expansion is low because demand is not there. If the "poor" suddenly had disposable income, there would be demand. The money would circulate, people would be lifted out of poverty, those people would invest, economy would rebound.



Its not exactly silly. The board of directors of a company make decisions on behalf of its stock holders/investors. They decide to give the CEO a bonus of whatever amount they deem is worthy to award him and keep him working for that company. In turn, the CEO could (and probably should) take some of that money and give it to his employees.

I advocate a social shift, one based on morality and the difference principal. Its possible and should be sought after and fought for.


You mean a trickle up economy rather than the failed trickle down economy we have experimented with for the last 30 years? Its about damn time! :sun
 
No they buy things they need which fuels economic growth. You know, like the growth we haven't had because the lower income classes haven't had the money to buy things because most of the money is going to the top.

We all buy the things we need, otherwise we'd all be dead. The difference is that the poor live beyond their means and the rich do not, and that is not because of income, it is because of personal habits.
 
People are paying down debt, and saving money rather then using it for consumption.

People don't save money forever. And again, we are seeing record profits.

Investing will not go on long if the goods produced through said investments are not going to be consumed. When people overall are confident in the amount of debt/savings they have, a vigorous expansion will not occur. Investment without consumption is meaningless.

We wouldn't be seeing record profits if there was no consumption.
 
We all buy the things we need, otherwise we'd all be dead. The difference is that the poor live beyond their means and the rich do not, and that is not because of income, it is because of personal habits.

Yeah, the poor sure have it made boy! 1 in 7 Americans were living below the poverty line in this country at the end of the Bush Administration. As more and more of the middle class falls under the poverty line, how does this help the economy? LOL! :sun
 
People don't save money forever. And again, we are seeing record profits.



We wouldn't be seeing record profits if there was no consumption.

I never said no consumption, it has just been reduced drastically

Look at US autosales, new home construction as examples. Autosales are down 20 %, new homes are even lower. That is a lot of consumption not occuring in comparison to the past, alot of people would be employed to meet that consumption demand
 
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