' WHAT WILL BALANCE OUT LABOR SUPPLY AND DEMAND?: Macro' Forces in Market Confound Stock Pickers - WSJ.com: "
Here is the key and the obvious answer to high unemployment:
'...economic overcapacity that has resulted in persistent high unemployment rates...'
Labor is one of the production inputs. Since it is clearly being substituted for, it is clearly too expensive. But, of course, that's the problem that can't be touched (see union strikes and government policies to raise both the direct and indirect costs of labor to satisfy social concerns more important than joblessness, like fancy healthcare, early retirement, unsaved for pensions, etc.).
To bring the labor cost and demand equation back into balance will certainly take something that's not in the 'macro' picture now. Someone could start taking bets; but, then again, some already have.
- Sent using Google Toolbar"
Friday, September 24, 2010
Thursday, September 23, 2010
Answer to Debt Woes Eludes Cities, States - WSJ.com
WHAT WILL GET US TO THE FOURTH INNING?: Answer to Debt Woes Eludes Cities, States - WSJ.com: "- Sent using Google Toolbar"
Clearly, the inability to consider, let alone act on programs that will be necessary in the long run, lead one to believe that we are owning in the 3rd inning of getting our economy to get back into a leadership and growing role.
Something needs to awaken the public to the fact that blaming the Chinese for what we have failed to do ourselves is a red herring.
Clearly also, the administration can't understand why one more credit card to the middle class won't get the economy growing. The administration seems to be blissfully ignorant of the fact that credit cards aren't income and that more buying power with constraints on business growth and investment seem contradictory.
But, then again, the 'world of entitlement' is one of give-me not let me earn and choose it myself.
What will move us to the fourth inning?
Clearly, the inability to consider, let alone act on programs that will be necessary in the long run, lead one to believe that we are owning in the 3rd inning of getting our economy to get back into a leadership and growing role.
Something needs to awaken the public to the fact that blaming the Chinese for what we have failed to do ourselves is a red herring.
Clearly also, the administration can't understand why one more credit card to the middle class won't get the economy growing. The administration seems to be blissfully ignorant of the fact that credit cards aren't income and that more buying power with constraints on business growth and investment seem contradictory.
But, then again, the 'world of entitlement' is one of give-me not let me earn and choose it myself.
What will move us to the fourth inning?
Monday, September 20, 2010
Eurocracy Fiddles as the Economy Falters - WSJ.com
AN OXYMORON: Eurocracy Fiddles as the Economy Falters - WSJ.com: "
Stimulating growth through higher taxes and union work rules is an oxymoron. Thus, Obama is blind to the idea that UAW policies create growth and sustainable economic prosperity.
All of these socialist policies are like the family with credit cards. They want a higher and higher standard of living every year and to do so, they keep adding to their credit card debt.
Everyone knows you reach a tipping point. At some point the interest and minimal fixed expenses exceed the ability of the cardholder (read, in this case, government) to sustain the debt.
The papers are full of how public union pension plans are having to face this same problem with too rich benefits and maxed out taxes.
One either supports growth with free labor and low taxes or it seems the opposite (e.g. US, France, Greece, etc.) - and, as with irrigated crops or rain starved crops, the results are as expected - either a bountiful harvest or a sparse one.
Obama thinks a failure to irrigate the US economy shouldn't change the results - well, it sure seems from this article that much of Europe has the same problem.
- Sent using Google Toolbar"
Stimulating growth through higher taxes and union work rules is an oxymoron. Thus, Obama is blind to the idea that UAW policies create growth and sustainable economic prosperity.
All of these socialist policies are like the family with credit cards. They want a higher and higher standard of living every year and to do so, they keep adding to their credit card debt.
Everyone knows you reach a tipping point. At some point the interest and minimal fixed expenses exceed the ability of the cardholder (read, in this case, government) to sustain the debt.
The papers are full of how public union pension plans are having to face this same problem with too rich benefits and maxed out taxes.
One either supports growth with free labor and low taxes or it seems the opposite (e.g. US, France, Greece, etc.) - and, as with irrigated crops or rain starved crops, the results are as expected - either a bountiful harvest or a sparse one.
Obama thinks a failure to irrigate the US economy shouldn't change the results - well, it sure seems from this article that much of Europe has the same problem.
- Sent using Google Toolbar"
Friday, September 17, 2010
China's Real Monetary Problem - WSJ.com
Q&A, A BETTER SOLUTION:China's Real Monetary Problem - WSJ.com:
Brad writes:
Everyone will have a different opinion on what went wrong with the theory that if we opened up our markets and had free trade with China we would be able to sell American products to China's one billion population.
None of that happened. Instead American surrendered it's manufacturing capacity to a socialist country.
Answer:
"What you might give some thought to is why the US is moaning about China instead of doing positive things to enrich America.
There is no reason America should not be growing and rich with jobs - right now!
But the policies of both administrations, Obama and the Democrats coming later and acting even more stupidly, is of course making a problem worse and worse by the day.
The US needs to open itself up to being business-friendly. This includes regulatory, investment and immigration friendliness. It is doing the exact opposite (and in terms of immigration policy, the Republicans are the worst offender!).
In terms of realizing that it takes capital to create new businesses, Bush was right on with tax cuts. But, he also failed to rein in entitlements. This includes public union benefit packages, which are out-of-touch with the rest of the economy.
Right now, the Democrats are borrowing way beyond the country's means to further expand and extend entitlements of all kinds. This is exactly the wrong policy!
The US has all the potential to compete and create jobs; but, the economic ineptness of the administration and the Republicans is holding back and wearing away that potential. And, while the Republicans may have 'some' clue as to what is going on; the Democrats clearly have 'none'!
- Sent using Google Toolbar"
Brad writes:
Everyone will have a different opinion on what went wrong with the theory that if we opened up our markets and had free trade with China we would be able to sell American products to China's one billion population.
None of that happened. Instead American surrendered it's manufacturing capacity to a socialist country.
Answer:
"What you might give some thought to is why the US is moaning about China instead of doing positive things to enrich America.
There is no reason America should not be growing and rich with jobs - right now!
But the policies of both administrations, Obama and the Democrats coming later and acting even more stupidly, is of course making a problem worse and worse by the day.
The US needs to open itself up to being business-friendly. This includes regulatory, investment and immigration friendliness. It is doing the exact opposite (and in terms of immigration policy, the Republicans are the worst offender!).
In terms of realizing that it takes capital to create new businesses, Bush was right on with tax cuts. But, he also failed to rein in entitlements. This includes public union benefit packages, which are out-of-touch with the rest of the economy.
Right now, the Democrats are borrowing way beyond the country's means to further expand and extend entitlements of all kinds. This is exactly the wrong policy!
The US has all the potential to compete and create jobs; but, the economic ineptness of the administration and the Republicans is holding back and wearing away that potential. And, while the Republicans may have 'some' clue as to what is going on; the Democrats clearly have 'none'!
- Sent using Google Toolbar"
China's Real Monetary Problem - WSJ.com
PONTIFICATING CONGRESS SHOWS ECONOMIC MYOPIA: China's Real Monetary Problem - WSJ.com:
"What was amazing listening to Bloomberg over the past day was to see and hear all the pontificating members of Congress talk about job losses due to the yuan valuation, but they said nothing about wanting higher prices at Walmart for every American or potentially much higher interest rates if the Chinese sell their holdings of US bonds.
Clearly America isn't going to set up factories to sell the consumer goods at Walmart; and, if we effectively boycott Chinese goods, then they will reciprocate.
So would the US rather have jobs making clothes or selling computers and technology?
The fact that the Congressmen were pontificating with such a UAW view of the world is certainly another reason to be worried about the impact of government on the economy.
- Sent using Google Toolbar"
"What was amazing listening to Bloomberg over the past day was to see and hear all the pontificating members of Congress talk about job losses due to the yuan valuation, but they said nothing about wanting higher prices at Walmart for every American or potentially much higher interest rates if the Chinese sell their holdings of US bonds.
Clearly America isn't going to set up factories to sell the consumer goods at Walmart; and, if we effectively boycott Chinese goods, then they will reciprocate.
So would the US rather have jobs making clothes or selling computers and technology?
The fact that the Congressmen were pontificating with such a UAW view of the world is certainly another reason to be worried about the impact of government on the economy.
- Sent using Google Toolbar"
Thursday, September 16, 2010
With Voters Divided, Leadership Is Crucial - WSJ.com
FALSE PROPHETS: With Voters Divided, Leadership Is Crucial - WSJ.com:
"Ah, but this article seems to put it well - the people don't really know.
When one reads the myriad comments, lots of people 'hope' Obama has an answer and blame Bush. Others excoriate Obama and want smaller government.
It's interesting to be reading the biography of Cornelius Vanderbilt and realize how the country was built by people who saw the benefits of their efforts accrue to themselves.
Right now government wants to take from some and equalize the benefits to those who'd rather be given than earn on their own.
That strategy of taking to produce growth would seem such anathema that any logical person would shy away from it. But, then again, people listen to religious leaders of myriad persuasions and accept that one religion has answers that others make clear are false prophets. All very interesting.
- Sent using Google Toolbar"
"Ah, but this article seems to put it well - the people don't really know.
When one reads the myriad comments, lots of people 'hope' Obama has an answer and blame Bush. Others excoriate Obama and want smaller government.
It's interesting to be reading the biography of Cornelius Vanderbilt and realize how the country was built by people who saw the benefits of their efforts accrue to themselves.
Right now government wants to take from some and equalize the benefits to those who'd rather be given than earn on their own.
That strategy of taking to produce growth would seem such anathema that any logical person would shy away from it. But, then again, people listen to religious leaders of myriad persuasions and accept that one religion has answers that others make clear are false prophets. All very interesting.
- Sent using Google Toolbar"
Wednesday, September 15, 2010
Small-Business Bill Clears Senate Hurdle - WSJ.com
WHAT'S LACKING: Small-Business Bill Clears Senate Hurdle - WSJ.com:
"This is so typical of what is wrong (or just totally missing) from administration attempts to restore faith in the economy.
They are making life harder on anyone trying to run a business with the $600 reporting requirement (clearly because they are trying to 'tax Peter to pay for benefits for Paul').
The administration also fails to comprehend that people go into business to make money for themselves - not the government, not their employees, etc.
People save money and lend money for the same reasons.
The spottiness and shabbiness and disjointed nature of the administration's policies can't help but make any business person wary.
As Roubini highlighted on Bloomberg today, the stock market has basically done nothing for a decade.
Democrats and their supporters may berate business for outsourcing, etc. - but, bottom line, business has basically just survived for a decade.
- Sent using Google Toolbar"
"This is so typical of what is wrong (or just totally missing) from administration attempts to restore faith in the economy.
They are making life harder on anyone trying to run a business with the $600 reporting requirement (clearly because they are trying to 'tax Peter to pay for benefits for Paul').
The administration also fails to comprehend that people go into business to make money for themselves - not the government, not their employees, etc.
People save money and lend money for the same reasons.
The spottiness and shabbiness and disjointed nature of the administration's policies can't help but make any business person wary.
As Roubini highlighted on Bloomberg today, the stock market has basically done nothing for a decade.
Democrats and their supporters may berate business for outsourcing, etc. - but, bottom line, business has basically just survived for a decade.
- Sent using Google Toolbar"
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