Economic Conditions For Near Term

[tucker]

It’s going to get much worse.

If Obambi is reelected it is 18-24 months before economic meltdown and social mayhem.

If Romney is elected we get the same republican “kick the can down the road politics” resulting in a little slower economic meltdown and a little longer fuse on the social time bomb...36-48 months

No miracle this time…

[kbohip]

It’s going to get much worse.

If Obambi is reelected it is 18-24 months before economic meltdown and social mayhem.

If Romney is elected we get the same republican “kick the can down the road politics” resulting in a little slower economic meltdown and a little longer fuse on the social time bomb...36-48 months

No miracle this time…

Well said.

[no2guncntrl]

Well I don't know about the rest of ya, but I get laid off until Aug.
That's going to hurt and what the F**K is going on with gas prices
NOW ????

[Dutchcedar]

^^^ Funemployment through the summer?

Hopin' it works out...

That sucks.

[BlackDragon24]

After spending the past month in business meetings and traveling about the country to visit a lot of our production plants, I can say that our nation is wholeheartedly ••••••.

My company is one of the better ones, making billions in net profits every year. But that isn't stopping us from shifting our production overseas to Singapore. 1000's of jobs being exported out of the country so that the company can improve profits over and above the billions they already take in. The sad thing is that when you look at the numbers, it makes complete sense. Why wouldn't you send it overseas if you could cut the costs of production by 40-50%?

It all goes back to my original position which is the only thing that is going to turn this country around. Until businesses, large and small, have incentive to keep workers in the US, we are screwed. Its not a republican or democratic problem. It's an American problem.

[AMDScooter]

After spending the past month in business meetings and traveling about the country to visit a lot of our production plants, I can say that our nation is wholeheartedly ••••••.

My company is one of the better ones, making billions in net profits every year. But that isn't stopping us from shifting our production overseas to Singapore. 1000's of jobs being exported out of the country so that the company can improve profits over and above the billions they already take in. The sad thing is that when you look at the numbers, it makes complete sense. Why wouldn't you send it overseas if you could cut the costs of production by 40-50%?

It all goes back to my original position which is the only thing that is going to turn this country around. Until businesses, large and small, have incentive to keep workers in the US, we are screwed. Its not a republican or democratic problem. It's an American problem.

Except that it's entirely one party that is pitching class warfare... a war on wealth creators & businesses and demonizing anyone who is a success and making money as part of "1%" not paying their "fair share". All the while making the states they run the most business hostile environments in the world. Collectively they have made the US the most expensive nation to do business in. The unions that fill the Demorats campaign coffers drove private industry offshore are bankrupting entire states. The known and unknown costs of unwanted and patently stupid legislation like heath care reform (obamacare), financial reform (dodd/fwank), gubberment choosing winners/losers (GM, Solyndra and the rest), affirmative action put on lenders that led to the financial meltdown and the regulatory nightmare (EPA) of your party are primarily responsible for the mess we are in. How can you say with a straight face "Its not a republican or democratic problem. It's an American problem."?

[kbohip]

After spending the past month in business meetings and traveling about the country to visit a lot of our production plants, I can say that our nation is wholeheartedly ••••••.

My company is one of the better ones, making billions in net profits every year. But that isn't stopping us from shifting our production overseas to Singapore. 1000's of jobs being exported out of the country so that the company can improve profits over and above the billions they already take in. The sad thing is that when you look at the numbers, it makes complete sense. Why wouldn't you send it overseas if you could cut the costs of production by 40-50%?

It all goes back to my original position which is the only thing that is going to turn this country around. Until businesses, large and small, have incentive to keep workers in the US, we are screwed. Its not a republican or democratic problem. It's an American problem.

Agreed. Though I will mention that policies like Obamacare definitely are NOT a friend to American business. Don't even get me started on all of the other red tape that must be dealt with if you have a business in the US either. So what does a business do? They can go the Gibson guitar route and try to fight the idiots, or they can just make their stuff in China. It signals the beginning of the end of the US as we know it. Sigh, am I the only one who's worried that the US doesn't innovate anywhere anymore except in the areas of smartphones (that are all made in China) and social networking companies that do nothing but make Americans less productive?

[bk94si]

No, you are not alone.

[Dutchcedar]

It all goes back to my original position which is the only thing that is going to turn this country around. Until businesses, large and small, have incentive to keep workers in the US, we are screwed. Its not a republican or democratic problem. It's an American problem.

The two parties have diametrically opposed positions on how to "solve" the problem of turning this country around. So it may not be a a republican or democratic problem (I'd disagree), but they're taxed with finding a solution from the gubberment's end.

On one side... they want more union power, more regulations, higher corporate taxes, obamacare, diversity by skin color, freedom's just another word for "nothin' left to lose".

On the other side... they want right to work laws, fewer regulations, lower corporate taxes, personal responsibility, diversity by choice, freedom is an inherent right from God.

[jimzinsocal]

I get what you are saying BD. See the numbers and it makes perfect sense. And we have to recall it wasnt the companies that created the climate that makes overseas production an option to explore. Our tax on businesses is what..the second highest in the world? We chase citizens to the absolute end of the earth and tax them on money earned overseas? To say nothing about taxes on dividends for individuals even tho that money has already been taxed. So what will incentivize companies? Dump Obamacare for one thing. Its like some great albatross circling every company. Fix the tax rates on businesses. Ease up on needless regulations that torment companies as with Gibson Guitars and energy companies. The business climate on this country needs a 180 turnaround. What was so wrong with Slick Willy's business attitude that Democrats feel obliged to follow Obama's socialist agenda? Particularly in light of what we see happening in Europe.
This country's economic success over the years has been due in large part to government basically staying out of the way of businesses...at least compared to other countries. This business of government believing it is the center of economic activity is absolutely backwards. Government owes its existance to the business world not the other way around.

[Cobra_nVidia]

What was so wrong with Slick Willy's business attitude that Democrats feel obliged to follow Obama's socialist agenda?

Because Republicans impeached him and scarred people like him away from Public Office!

Slick Willy wanted nothing more than some action with someone other than Hillary Clinton. I mean, can you blame him?

[otoc]

Thanks BD, finally a post that contains a vacation from knee jerk reactions and partisan sound bites.

Business.


The 2011 Fortune 500: The Big Boys Rack Up Record-Setting ProfitsThe 2011 Fortune 500: The Big Boys Rack Up Record-Setting Profits

The Fortune 500 generated a total of $824.5 billion in earnings last year, up 16.4% over 2010. That beats the previous record of $785 billion, set in 2006 during a roaring economy. The 2011 profits are outsized based on two key historical metrics. They represent 7% of total sales, vs. an average of 5.14% over the 58-year history of the Fortune 500. Companies are also garnering exceptional returns on their capital. The 500 achieved a return-on-equity of 14.3%, far above the historical norm of 12%.

Apple's stash leads as U.S. companies hit record high cash reserve

Taking out the nearly $100 billion in cash and equivalents that Apple had at the end of 2012, the cash figure for all U.S. companies was relatively unchanged at $1.15 trillion, the firm reported.
But with Apple leading the way, the amount of cash held by U.S. corporations hit a record $1.24 trillion, about 57 percent of it in overseas accounts to avoid paying taxes that would be owed if it was repatriated.
The record amount of cash came even though many companies increased capital expenditures, dividend payments, share buybacks and acquisition spending last year, the report shows.
In addition to record amounts of cash, non-financial companies covered by the report also posted record revenue of $10.4 trillion and cash flow from operations of $1.3 trillion.

Wall Street
Bonuses Dip on Wall St., but Far Less Than Earnings

In all, securities firms in New York made an estimated $13.5 billion in 2011, down sharply from $27.6 billion in 2010, according to the comptroller’s estimates. It is the second consecutive year that Wall Street’s profit fell by more than half.

Despite the difficult environment, New York firms paid roughly $20 billion in year-end cash compensation to their employees. The average bonus was $121,150, down just 13 percent from the year before as the head count shrank. In 2006, the year before the financial crisis, the average investment bank employee took home a bonus of $191,360.

Still, a dip in year-end cash compensation is cause for concern for New York government officials. Before the financial crisis, Wall Street accounted for 20 percent of the state’s tax revenue. Last year, that tally was 14 percent. For New York City, the share dropped to 7 percent of tax revenue from 13 percent over the same period.
“The city budget is dependent on a very small group of people — the 1 percent, if you will,” said Nicole Gelinas, a senior fellow at the Manhattan Institute. “If the 1 percent isn’t doing well, the city’s not doing well.”

Trade Deficit: Outsourcing Wayback Machine
http://forums.pcper.com/showthread.php?t=414633

The problem with the economy is business has not invested because of the rewards of short term gains. It's time business started looking at the meaning of being a US Citizen. That means investing in the income of the entire working population. Government stimulus packages, as we've seen, can only go so far when a high percentage is nothing more than a tax break.

I'm not as pessimistic about our future if politics gets off the free trade, deregulation, oh poor business, the wall street boys are being persecuted BS. It's simply not true.

OTOH, I see no "R" in this article
Facebook co-founder Saverin targeted by U.S. senators for tax ‘avoidance scheme’
must be that anti-tax crap

and I see Mitt Romney Says Bain Attacks Are Part of Obama’s ‘Character Assassination’
as if Bain wasn't looking for short term gains and made money regardless of the workers that had no jobs to go to

yet I see nothing here in TLR about this move in 2011
Greece approves austerity programme as protesters clash with police
and where Greece is now.

Sometimes we need our governments to support things during a crash, sometimes we need business to step up to the plate.

[jimzinsocal]

Howdy otoc. Its the step up to the plate part that seems to be the argument. I guess that means hire more people or keep more employees. Be more socially responsible despite being the source of money that enables government to be just that...now that attempts to stimulate the economy have proven to be a failure to the dismay of Keynesians everywhere.
Hard to argue the truthiness of Keynesian theory and ask business to do more in the same breath. Equally hard to ask businesses to do more and at the same time create a distinct anti business climate. Hard to motivate business to invest when there is little in the way of incentive. Invest in what exactly? The ability to fill shelves somewhere in unsold inventories? And at the same time thumb the government nose at a project like Keystone? Cripple the energy sector with more regulations unless they meet ideological demands?
You see what Im getting at. Perhaps government has become its own worst enemy in the stunningly slow recovery. And why really? Why would a government hungry for employment increases behave in ways that seem so counter intuitive. To satisfy some ideological agenda that demands government is the source of economic activity?
The lesson learned in all this is that increased government spending are transitory at best and provide little in the way of real growth the same way a couple of weeks of overtime do little to change consumer habits.
Another lesson is the failure of politically reasoned economic theory as we have seen with various "Green" company failures. Symbolic economics hasnt worked. The "change" hasnt worked out.

[otoc]

Howdy otoc. Its the step up to the plate part that seems to be the argument. I guess that means hire more people or keep more employees. Be more socially responsible despite being the source of money that enables government to be just that...now that attempts to stimulate the economy have proven to be a failure to the dismay of Keynesians everywhere.
Hard to argue the truthiness of Keynesian theory and ask business to do more in the same breath. Equally hard to ask businesses to do more and at the same time create a distinct anti business climate. Hard to motivate business to invest when there is little in the way of incentive. Invest in what exactly? The ability to fill shelves somewhere in unsold inventories? And at the same time thumb the government nose at a project like Keystone? Cripple the energy sector with more regulations unless they meet ideological demands?
You see what Im getting at. Perhaps government has become its own worst enemy in the stunningly slow recovery. And why really? Why would a government hungry for employment increases behave in ways that seem so counter intuitive. To satisfy some ideological agenda that demands government is the source of economic activity?
The lesson learned in all this is that increased government spending are transitory at best and provide little in the way of real growth the same way a couple of weeks of overtime do little to change consumer habits.
Another lesson is the failure of politically reasoned economic theory as we have seen with various "Green" company failures. Symbolic economics hasnt worked. The "change" hasnt worked out.

Lol define failure for the economy isn't where it was. Is it?
Or how about half of the stimulus used to extend tax cuts? No one said that would stimulate, only relieve those hit hardest. Except for those much aligned 1%s. that trickled down didn't it?

Record profits. Record reserves. And what do we have to show for it? It's a failure? Come on now. Time for those haves to invest in our future.

[Enmore]

What was so wrong with Slick Willy's business attitude that Democrats feel obliged to follow Obama's socialist agenda?

Clinton signed the Financial Services Modernization Act (1999) AKA the Gramm–Leach–Bliley Act (all 3 of them Republicans), which undid much of the Glass–Steagall Act (1933) and lit the fuse for the financial meltdown.

http://en.wikipedia.org/wiki/Gramm%E...0%93Bliley_Act