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Good news; but not good enough?
Topic Started: Dec 2 2010, 06:27 AM (257 Views)
big al
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Bull-Carp
Quote:
 
Private Sector Posts Best Job Gains in Three Years
The 10th consecutive month of gains offered hope that the job sector, still convalescing after a brutal economic recession, was on the mend.

Wednesday, December 01, 2010
By . Agence France-Presse

Payrolls expanded by 93,000 in November -- the largest jump in three years, payrolls firm ADP said on Dec. 1

"This month's ADP national employment report shows an acceleration of employment and suggests the nation's employment situation is brightening somewhat," the firm said.

The 10th consecutive month of gains offered hope that the job sector, still convalescing after a brutal economic recession, was on the mend.

But ADP warned "employment gains of this magnitude are not sufficient to lower the unemployment rate." The unemployment rate remained stuck at 9.6%in October for the third month in a row.

That echoes concerns by Federal Reserve chairman Ben Bernanke, who on Nov. 30 warned current high levels of unemployment could become entrenched and have a "very long-term effect" on the U.S. economy.

Describing job creation as "probably the most important economic issue facing America today," Bernanke cautioned on the risks of long-term unemployment.

With nearly 10% of the U.S. workforce unemployed for more than six months, fears are growing that high jobless rates may be more than a temporary result of a brutal recession.

"This is very unusual and very worrisome," Bernanke said, warning that workers could become detached from the workforce, skills could erode over time and firms become more skeptical about the unemployed.

"This could have a very long-term effect on people's wages, on their employability," Bernanke said.

He added the world's largest economy was not growing fast enough to handle even the number of people entering the workforce, with 2% to 2.5% growth needed to just to keep up.

The Fed has predicted gross domestic product growth will hit 2.4%-2.5% this year.

Copyright Agence France-Presse, 2010


So what are practical measures to increase employment?

Big Al
Location: Western PA

"jesu, der simcha fun der man's farlangen."
-bachophile
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ivorythumper
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I am so adjective that I verb nouns!
Cut taxes and cut all the Federal mandates for benefits, insurance and minimum wages so that small businesses can afford to hire people.
The dogma lives loudly within me.
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Frank_W
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Resident Misanthrope
Right on, IT.

Along with that, provide incentives to companies that maintain the bulk of their manufacturing, domestically. Lower taxes, lower taxes, lower taxes. As long as people, small businesses, and large corporations are saddled with massive taxes, they are going to continue outsourcing their manufacturing, and with that, thousands (even millions) of jobs, along with it.

As long as consumer confidence remains poor, companies are tightening their belts, freezing new hiring, and the housing market and durable goods market will continue to stagnate. The dollar will continue to weaken and the stock markets will continue to erode.

You can't tax your way out of a recession. It's impossible, stupid, and it doesn't work. Since the government is being so free with trillions of dollars, how about paying off peoples' mortgages? That would stimulate the housing market, put more money in taxpayers' pockets that they would use to purchase durable goods, manufacturing would crank up to keep pace with demand, and people would inject billions (even trillions) back INTO the economy!
Anatomy Prof: "The human body has about 20 sq. meters of skin."
Me: "Man, that's a lot of lampshades!"
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1hp
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Fulla-Carp

Just remember - the real unemployment number is something in the order of 17%. Long way to go. Also, one would expect things to improve slightly at this time of year as temps are hired to handle the holiday shopping. The Jan and Feb 2011 numbers will be the real indicators.

There are 10 kinds of people in this world, those that understand binary and................
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Axtremus
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HOLY CARP!!!
ivorythumper
Dec 2 2010, 07:33 AM
Cut taxes and cut all the Federal mandates for benefits, insurance and minimum wages so that small businesses can afford to hire people.
Sure ... slavery is pathway to full employment.

That said, I fully support lifting the burden of providing healthcare benefits from ALL employers -- single payer universal healthcare is the way to go.
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Copper
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Shortstop
Axtremus
Dec 2 2010, 08:45 AM

single payer universal healthcare is the way to go.

If you are volunteering to be the single payer, I agree.

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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Axtremus
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HOLY CARP!!!
Frank_W
Dec 2 2010, 07:36 AM
Along with that, provide incentives to companies that maintain the bulk of their manufacturing, domestically. Lower taxes, lower taxes, lower taxes. As long as people, small businesses, and large corporations are saddled with massive taxes, they are going to continue outsourcing their manufacturing, and with that, thousands (even millions) of jobs, along with it.
What "massive taxes"? The GWB era has seen ridiculously low tax rates, yet the economy and employment number tanked anyway, big time. The Bill Clinton era had higher tax rates, and the American economy roared and we had about the lowest unemployment rate in US history.

Quote:
 
As long as consumer confidence remains poor, companies are tightening their belts, freezing new hiring, and the housing market and durable goods market will continue to stagnate.
This I agree.

Quote:
 
The dollar will continue to weaken and the stock markets will continue to erode.
The dollar has been weakening throughout most of the GWB era with ridiculously low tax rates, but the "strong Dollar policy" was quite effective throughout most of the Clinton era's higher tax rates. If you want stronger Dollar, cutting taxes is not an effective way to get there. (Putting aside the wisdom of wanting of wanting a US Dollar.) If you want stronger consumer confidence, see below ...

Quote:
 
You can't tax your way out of a recession. It's impossible, stupid, and it doesn't work. Since the government is being so free with trillions of dollars, how about paying off peoples' mortgages? That would stimulate the housing market, put more money in taxpayers' pockets that they would use to purchase durable goods, manufacturing would crank up to keep pace with demand, and people would inject billions (even trillions) back INTO the economy!
This is sensible. If we're going to print money anyway, perhaps Obama's $50B mortgage modification program (that's now expected to spend only $12B) should have been many times bigger.

As you quite correctly noted above -- consumers are not spending; either because they lack confidence or they lack money or they lack both. Businesses are not expanding, businesses are contracting or folding because there is lack in demand.

We have a demand problem, not a supply problem.

This is where the deficit hawks go wrong: You can't fix a demand problem by cutting spending. Lower spending == lower demand.

As you're going to give money away, don't give it to those who will hoard it, give it to those who will spend it.

Who will hoard money if given more? Those who already have a lot of money.

Who will spend money if given any? Those who are broke.

Simple, isn't it?
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Copper
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Shortstop
Axtremus
Dec 2 2010, 09:13 AM

ridiculously low tax rates

There is no such thing.

If the country were well managed it would turn a profit like any well-run business.

Then the tax rate would actually be negative. This is how it should be.

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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ivorythumper
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I am so adjective that I verb nouns!
Axtremus
Dec 2 2010, 08:45 AM
ivorythumper
Dec 2 2010, 07:33 AM
Cut taxes and cut all the Federal mandates for benefits, insurance and minimum wages so that small businesses can afford to hire people.
Sure ... slavery is pathway to full employment.

That said, I fully support lifting the burden of providing healthcare benefits from ALL employers -- single payer universal healthcare is the way to go.
who said anything about slavery? As a business owner it is in my interest to hire the best qualified at a fair wage since there is competition for talent.
The dogma lives loudly within me.
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