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Inflation and Unemployment take a big jump
Topic Started: Feb 18 2010, 06:23 AM (896 Views)
Luke's Dad
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Emperor Pengin
Cheery news to start the day with.
The problem with having an open mind is that people keep trying to put things in it.
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Luke's Dad
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Emperor Pengin
Good thing the Stimulus Package saved our collective ass.

:rolleyes2:
The problem with having an open mind is that people keep trying to put things in it.
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1hp
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Fulla-Carp

Here's my unofficial indicator. One year ago you could not get through, by phone, to the California EDD. By mid August last year you had no problem getting through by phone. At present, one can no longer get through, by phone, to California EDD - you get the "we are receiving more calls than we can handle" message. Somethings caused the increase in phone calls.
There are 10 kinds of people in this world, those that understand binary and................
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ivorythumper
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I am so adjective that I verb nouns!
Time to start tracking the misery index.
The dogma lives loudly within me.
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Mikhailoh
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If you want trouble, find yourself a redhead
Say goodbye to the Democratic majorities, then to Obama.

AMFs.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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John D'Oh
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MAMIL
Mikhailoh
Feb 18 2010, 11:00 AM
Say goodbye to the Democratic majorities, then to Obama.

AMFs.
The GOP are going to fix the economy!

IOW, we're f*cked.
What do you mean "we", have you got a mouse in your pocket?
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Mikhailoh
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If you want trouble, find yourself a redhead
They'll come closer than accepting $1.3 trillion annual deficits as far as the eye can see.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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Copper
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Shortstop
Mikhailoh
Feb 18 2010, 11:00 AM
Say goodbye to the Democratic majorities, then to Obama.

AMFs.

A year later, some progress.
The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy
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George K
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Finally
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A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

I'd rather listen to an hour of Abba than an hour of The Beatles.
- Klaus, 4/29/18
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Axtremus
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HOLY CARP!!!
Mikhailoh
Feb 18 2010, 11:33 AM
They'll come closer than accepting $1.3 trillion annual deficits as far as the eye can see.
Can you explain how "reducing the deficit" can lead to more employment? (Or conversely, how "increasing the deficit" can lead to more unemployment?)
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Jolly
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Geaux Tigers!
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The main obstacle to a stable and just world order is the United States.- George Soros
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Copper
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Axtremus
Feb 18 2011, 06:09 PM
Mikhailoh
Feb 18 2010, 11:33 AM
They'll come closer than accepting $1.3 trillion annual deficits as far as the eye can see.
Can you explain how "reducing the deficit" can lead to more employment? (Or conversely, how "increasing the deficit" can lead to more unemployment?)

As unbelievable as it may have been years ago government workers now cost more than real workers.

Let's cut all federal spending. Ohhh let's say about 50% to start.

Now all that money can stay in the private sector where it can buy more workers.

Unemployment reduced, simple.

The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy
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garrett2
Junior Carp
Copper
Feb 18 2011, 06:21 PM
Now all that money can stay in the private sector where it can buy more workers.

Unemployment reduced, simple.

I'm not sure I follow. How can you conclude that if the federal gov't reduces the amount of money they are spending (assuming they are still running at a deficit, albeit a smaller deficit) that this would leave more money in the private sector?

Reducing the annual deficit doesn't automatically equate to lower taxes.
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Axtremus
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HOLY CARP!!!
Copper
Feb 18 2011, 06:21 PM
Axtremus
Feb 18 2011, 06:09 PM
Mikhailoh
Feb 18 2010, 11:33 AM
They'll come closer than accepting $1.3 trillion annual deficits as far as the eye can see.
Can you explain how "reducing the deficit" can lead to more employment? (Or conversely, how "increasing the deficit" can lead to more unemployment?)

As unbelievable as it may have been years ago government workers now cost more than real workers.

Let's cut all federal spending. Ohhh let's say about 50% to start.

Now all that money can stay in the private sector where it can buy more workers.

Unemployment reduced, simple.

Can you explain how "cutting government spending" will lead to "having more money stay in the private sector"?

After that, please explain how you go from "it can buy more workers" to "it will buy more workers."

The S&P 500 companies, as a group, sit on a pile of cash in excess of $1.18 Trillion, a historical high. They "can" buy a lot of workers, yet they do not. They are cutting spending, lowering head counts.

Support you manage to explain how the money "will" buy more workers, please also explain why the workers bought will be Americans instead of foreigners not living in US territories.
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George K
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Finally
Axtremus
Feb 18 2011, 06:33 PM
The S&P 500 companies, as a group, sit on a pile of cash in excess of $1.18 Trillion, a historical high. They "can" buy a lot of workers, yet they do not. They are cutting spending, lowering head counts.
Why do you think that is?
A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

I'd rather listen to an hour of Abba than an hour of The Beatles.
- Klaus, 4/29/18
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Axtremus
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HOLY CARP!!!
For the time being, I'm just noting an example showing "having money that can buy many workers" do not automatically translate to "having money will buy many workers."

I have my theory why, but I don't want to derail the line of questioning just yet, as I'm still trying to see how some one can explain how "reducing the deficit" can lead to "more employment."
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Steve Miller
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Bull-Carp
Copper
Feb 18 2011, 06:21 PM
Now all that money can stay in the private sector where it can buy more workers.



And just what sort of work would have these workers do, exactly?
Wag more
Bark less
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George K
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Finally
Businesses (like mine) are in the habit of trying to maximize profits. To do that, they have to anticipate what future profits will be. Those profits are a function of taxes and expenses, as well as of income. If the cost of hiring more people (particularly full-time people with all of their attendant benefits) exceeds the income gained from growing the business, they won't do so. If the business expects taxes to rise, they won't hire either. Those are the decisions that my small business has had to make.

I can't speak to S&P 500 companies, and that's why I asked the question. I can only speak to my little business that has 4 partners and 10 employees (of which 6 are part-time).
A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

I'd rather listen to an hour of Abba than an hour of The Beatles.
- Klaus, 4/29/18
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Copper
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Shortstop
Steve Miller
Feb 18 2011, 06:45 PM
Copper
Feb 18 2011, 06:21 PM
Now all that money can stay in the private sector where it can buy more workers.



And just what sort of work would have these workers do, exactly?

Whatever the market will bear.

That's the beauty of free markets without government interference.


The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy
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Copper
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garrett2
Feb 18 2011, 06:32 PM

Reducing the annual deficit doesn't automatically equate to lower taxes.


I'm depending on Mr. Obama's word for that.
The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy
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Copper
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Shortstop
Axtremus
Feb 18 2011, 06:33 PM

Can you explain how "cutting government spending" will lead to "having more money stay in the private sector"?

After that, please explain how you go from "it can buy more workers" to "it will buy more workers."

If the feds (government) take less of my (private) money that's where it stays.

I think explaining how to reduce the deficit is enough work for a Friday night.
The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy
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garrett2
Junior Carp
Copper
Feb 18 2011, 07:05 PM
I'm depending on Mr. Obama's word for that.
:lol2:

You're going to need a bigger snorkel :float:
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Steve Miller
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Bull-Carp
George K
Feb 18 2011, 06:47 PM
Those profits are a function of taxes and expenses, as well as of income.
But the decision to hire isn't.

I hire more people when hiring more people makes me more money than not hiring them does. That decision is based solely on whether or not there is profitable work for them to do.

If you gave me back 100% of the taxes I pay I wouldn't hire a single employee unless I had profitable work for them to do.

And neither would you.
Wag more
Bark less
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garrett2
Junior Carp
Steve Miller
Feb 18 2011, 08:49 PM
If you gave me back 100% of the taxes I pay I wouldn't hire a single employee unless I had profitable work for them to do.

And neither would you.
I don't think that's necessarily true for many small businesses. For some businesses, an owner may want to hire a bookkeeper (so that they don't have to work 80+ hours per week), but simply can't afford to. If 'they' gave that business owner 100% of their taxes back, then that business owner might just decide that it would be "personally" worthwhile to hire a bookkeeper.

Maybe it's just semantics with regard to how you define profit, but for many small business owners hiring that bookkeeper represent the reality of making a profit versus a loss.
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George K
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Finally
Steve Miller
Feb 18 2011, 08:49 PM
George K
Feb 18 2011, 06:47 PM
Those profits are a function of taxes and expenses, as well as of income.
But the decision to hire isn't.
But the decision of whom to hire is.
Quote:
 
If you gave me back 100% of the taxes I pay I wouldn't hire a single employee unless I had profitable work for them to do.

And neither would you.

If the person you hire cost you more in FICA, health benefits, etc, you'll hire part-time, as long as the work gets done. Our corporation, unlike yours, has a fixed workload. We have to provide "X" number of bodies per day to do the work that's required of our corporation. That's our contract. The "X" doesn't change, and so, it's up to us to minimize the costs to achieve "X". Your "X" is variable.

Your corporation can grow the business. We can't, because our business has a fixed responsibility, and yours doesn't.

We maximize profits by decreasing the amount it costs us to achieve "X". If it costs us more, we hire cheaper people. It's not a decision of whether to hire, it's a decision of how and whom to hire. The "underemployment" rate is estimated to be between 18 and 20 percent. I would guess that it's because businesses are looking to maximize their profits by not paying the expenses of having employees that cost them too much. At the moment, part-time is cheaper than full time. That hasn't always been the case, has it?

It strikes me as being pretty simple. If it costs more to hire Joe than Steve Larry, you'll hire Larry. There comes a point where Larry's productivity doesn't meet that of Joe, and you'll hire Joe instead. When the pool of Larry decreases, and he becomes more expensive, you'll go back to hiring Joe.
A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

I'd rather listen to an hour of Abba than an hour of The Beatles.
- Klaus, 4/29/18
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