Profits Are Booming. Why Aren’t Jobs?

Discussion in 'Economy' started by expat_panama, Jun 2, 2011.

  1. expat_panama
    Offline

    expat_panama Silver Member

    Joined:
    Apr 12, 2011
    Messages:
    2,461
    Thanks Received:
    252
    Trophy Points:
    98
    Ratings:
    +253
    Typical NYT anti-business hit piece from last January.

    The update is that current numbers over last quarter show corp profits down 2%, corp. taxes up 7%, and employee comp. no change. IMHO the NYT is good for finding out what the latest Marxist party line is, but these days anyone interested in corporate finance can check the BEA directly and find out that for years going into the recession profits fell while pay increased.

    [​IMG]

    I'm trying to remember the 2008 NYT headline "Profits are tanking, Why Aren't Jobs?" There wasn't one, and the bottom line here is that mean old corporations pay six bucks in employee comp. for ever dollar proft, and when profits tank pay doesn't.
     
    Last edited: Jun 2, 2011
  2. Dont Taz Me Bro
    Offline

    Dont Taz Me Bro USMB Mod Staff Member Gold Supporting Member Supporting Member

    Joined:
    Nov 17, 2009
    Messages:
    31,598
    Thanks Received:
    6,683
    Trophy Points:
    1,170
    Location:
    Las Vegas, Nevada
    Ratings:
    +17,474
    Because the future is far too uncertain right now.
     
  3. boedicca
    Offline

    boedicca Uppity Water Nymph Supporting Member

    Joined:
    Feb 12, 2007
    Messages:
    41,777
    Thanks Received:
    12,769
    Trophy Points:
    2,250
    Location:
    The Land of Funk
    Ratings:
    +22,738
    Most job creation is by small businesses, which are not seeing Booming Profits.

    Don't confuse the Mega Corps Government Crony sector with the Entrepreneurial one.

    Small businesses are being buried in current regulatory and tax costs...and are threatened with increased future ones. Economic growth is moribund. Without confidence that the business will be able to grow enough to recoup the investment in additional staff, there is no reason to hire anyone.

    This is why Obamanomics is an Epic Fail.
     
  4. expat_panama
    Offline

    expat_panama Silver Member

    Joined:
    Apr 12, 2011
    Messages:
    2,461
    Thanks Received:
    252
    Trophy Points:
    98
    Ratings:
    +253
    Right, too much confusion here, let's get our facts straight. The Small Business Admin. has a great FAQ site that explains how virtually all of the 6 million US employers are corporations, and all but 18 thousand are small business.
     
  5. auditor0007
    Offline

    auditor0007 Gold Member

    Joined:
    Oct 19, 2008
    Messages:
    12,566
    Thanks Received:
    2,255
    Trophy Points:
    255
    Location:
    Toledo, OH
    Ratings:
    +3,218
    The reason companies are not hiring is very simple. They realize that people do not have enough disposable income to purchase any new goods. The companies that are thriving are the ones that deal with everyday consumable goods that must be purchased. Those that deal in producing non-essential goods are in trouble. So why is it that nobody has money to purchase goods? It's not because they are overtaxed. It is simply that the vast majority of the money is filtered to the top, leaving those on the bottom unable to even make ends meet.

    The minimum wage now has the only 75% of the purchasing power it did in the 70's. Along with the minimum wage being much lower in purchasing power, everyone at the bottom and heading into the middle are earning less than they did in the 70's. If people were being paid fair wages for their work, they would have more to spend and the economy would grow. You would see much more growth and it would benefit everyone. This idea that companies cannot afford to pay people more has helped stagnate growth everywhere. Keeping wages low, keeps the profits for those at the top, but it destroys the middle class and it forces more people at the lower end to seek assistance from the government, and guess who pays for that?

    Seriously, greed has fucked this country up something terrible. In the end it will eventually hit those at the top too. There will be fewer and fewer well to do, and then things will begin to shift as those holding the purse strings will no longer be able to fool the majority into thinking that creating an uber wealthy class while impoverishing everyone else is a smart thing.
     
    • Thank You! Thank You! x 2
  6. whitehall
    Online

    whitehall Gold Member

    Joined:
    Dec 28, 2010
    Messages:
    27,775
    Thanks Received:
    4,332
    Trophy Points:
    290
    Location:
    Western Va.
    Ratings:
    +10,735
    Corporations are afrad of the incoherent agenda of the Obama administration. They are afraid to expand or hire new employees because nobody knows what quirky scheme or new tax the neo-socialists have up their sleeves. How do you trust a president who refered to the US Chamber of Commerce as a sinister tool of the republican party. Corporations are afraid of the radical environment agenda that could close them down in a heart beat just by regulating a product to death. We saw Obama's choice of appointment to his "green jobs panel". Van Jones had no experience in green jobs. He was a communist who once led an arson and looting rampage. Where are the green jobs?
     
  7. bugs
    Offline

    bugs Senior Member

    Joined:
    Jul 31, 2009
    Messages:
    742
    Thanks Received:
    39
    Trophy Points:
    53
    Location:
    a place full of bugs..
    Ratings:
    +101
    we are in a economic depression.. just watch home values continue to plummet! :evil:
     
  8. Mr Clean
    Offline

    Mr Clean Gold Member

    Joined:
    Aug 23, 2009
    Messages:
    10,054
    Thanks Received:
    2,250
    Trophy Points:
    255
    Ratings:
    +3,825

    They could drop corporate tax rates to zero and eliminate every single regulation on the books and it would do nothing to change the fact that foreign workers will work for a fraction of their American counterparts.
     
    • Thank You! Thank You! x 1
  9. Sallow
    Offline

    Sallow The Big Bad Wolf. Supporting Member

    Joined:
    Oct 4, 2010
    Messages:
    56,535
    Thanks Received:
    6,132
    Trophy Points:
    1,840
    Location:
    New York City
    Ratings:
    +7,394
    This was the major cause of the French revolution.
     
    • Thank You! Thank You! x 1
  10. Sallow
    Offline

    Sallow The Big Bad Wolf. Supporting Member

    Joined:
    Oct 4, 2010
    Messages:
    56,535
    Thanks Received:
    6,132
    Trophy Points:
    1,840
    Location:
    New York City
    Ratings:
    +7,394
    No..they are not. If that were they case..they got exactly what they wanted during the Bush administration and cut American jobs like mad.
     

Share This Page

Search tags for this page

booming profits for big business and the middle class goes