Sunday, July 10, 2011

Profit Margins are Key for U.S. Growth - WSJ.com

WHERE'S THE MONEY?: Profit Margins are Key for U.S. Growth - WSJ.com


One can't help but think of the old saying "where's the money".

As such, we see government taking more and more of it and not doing anything productive with it.

That surely doesn't sound like the way to create long-term economic growth or jobs.

But heck, it's just like the California legislature passing a bill (reported in the LA Times this weekend) that schools in California can't lay off teachers to balance the books - so, here we are - "MAGIC MONEY". Exactly the same as many protesters and union members in Europe and Greece.

Don't lay us off; don't change work rules; and, oh yes, keep paying us!

Obama has that disconnect. He assumes the economy will keep producing the jobs and wealth that he wants to spend; but, he hasn't an obvious clue as to help support the ability of the economy to do it.

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