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125 Comments
- inactive, on 07/14/2009, -3/+31In conclusion, stimulus packages and bigger government won't work. (See: Japan)
- pathouston22, on 07/14/2009, -7/+35Spain loses 2.2 jobs for every 1 green job they have created since starting to transform towards green 10 years ago.
Good luck in hoping that green jobs will save our economy. - sirkel28, on 07/14/2009, -6/+34Manufacturing jobs are the backbone to any solid economy, without them we are screwed. This is why China is doing so well and we are not.
- Meor, on 07/14/2009, -0/+24Creating jobs is easy. Hire 200 people to go around the city and break windows. Hire 200 more people to go around fixing windows. According to politicians you just created 400 jobs and your economy is great.
Don't be sweet-talked by politicians, friends. - MonkeyOverlord, on 07/14/2009, -4/+26You want to bring jobs back from overseas?
1) Cut back many of the regulations which make American workers extremely expensive to hire.
2) Eliminate all corporate taxes (they just get passed onto consumers in the form of higher prices). There is also a moral argument for this: if you want to utterly disenfranchise corporations and take away their voice in the body politic, you cannot tax them (taxation without representation).
3) Institute a flat income tax for all workers. Let everyone pay 5% of their income to support the common good.
4) Hit the rich instead with luxury taxes like a 15% federal sales tax on any car that costs more than $50k and 20% on any house that costs $1M or more. Consumption taxes on luxuries are the best way to soak the rich without making them seek out tax havens. There are ways to enforce them if they try to go outside the system by buying cars abroad and importing them *cough*import duties*cough*. - richmomz, on 07/14/2009, -1/+22Woah woah woah - this guy's assessment of the economy actually makes sense, and he correctly lays the blame on the Federal Reserve's reckless (and secretive) monetary policies - and it was published in a mainstream online financial publication. How did *that* happen?
- kemp34, on 07/14/2009, -3/+23Massive credit booms and busts (enabled by the Fed flooding the market with cheap credit, along with minimal reserve fractional reserve banking, and hyper-leveraged speculation) have lain waste to the long run viability of thousands (if not millions) of economic endeavors in America at this time. Allowing high profile entities (like the Fed) to enable this unsustainable behavior and then proposing they get MORE POWER after they have already FAILED big time (like Obama recently proposed WTF) is just plain ridiculous.
- TherealObadiah, on 07/14/2009, -2/+21Obama: “We must pass the STIMULUS BILL since it will keep unemployment at 8 percent..." "The economy is easing." The wost is behind us." There are economic 'green shoots'".
Obama has no idea what he's doing other than royally screwing up this economy. Yeah, yeah, we were in a down turn when he took over, but Obama took a down turn and poured gasoline all over it and lit a match. Oh, and by the way, we now have a defit of $1 trillion and about $12 trillion of debt.
Hope and Change? Yeah, keep the change. - Cputerace, on 07/14/2009, -3/+22Jobs are only sustainable if there is true work. True (sustainable) work can only be created when people have money to invest. Money to invest can only sustainably come from people saving (not stimuluses). Saving will never come with interest rates at 1%.
End the fed. Let the market set the interest rates, and see how many more people will start saving when the interest rate hits 10-15%. All that extra savings will provide the (sustainable) liquidity in the credit markets that is so sorely needed for investment (i.e. jobs) - Jsmuli2, on 07/14/2009, -5/+23WRONG WRONG WRONG
Making honest money is the backbone to any solid economy. Jobs are the byproduct of a person's desire to make money.
Everything in a free market is done "selfishly" I put that word into quotations because it's not the bad kind of selfish where you take everything for yourself, instead it's selfish in "how can I make this product faster, better and cheaper than my competitors and still make good money?" Or "What product/service does this area need and how can I deliver it so I can live in that dream house of mine?"
You don't start a business to create jobs, you don't run a business so people can have jobs. YOU OWN A COMPANY TO MAKE MONEY, YOU SELL A PRODUCT/SERVICE TO MAKE MONEY.
What happens is, someone starts up an IT company by themselves. They make applications for police departments to keep track of all incidents that happen in an area. I have a great concept and a great prototype except I don't know much about Database Management. I just know computer languages. So I find someone to handle the Databases (that's +1 jobs created), then I find out that I have a lot of bugs in the system and I don't have the time to find them, so I hire a team of testers (+3 jobs). But wait, my accounting is getting complex now, so I get someone to run our paychecks and benefits (+1) and so on. See, all I wanted to do is make money, but I can't do everything, and if the free market shows us anything, it's that specialization is the key to a solid product which is the foundation for running a successful business. That is how jobs are created. No one in their right mind runs a business and only wants to break even just to give X-amount of people a job.
In fact, that is why it is actually better to become a financial stakeholder in a company looking to expand than to give to charity because the there is a return on investment while new jobs are being created. While charity (as noble as it is, and I do give to charity) is usually a 1 way, temporary, ticket. - BotchaMcCoola, on 07/14/2009, -2/+17It may be hard for politicians but good economies have done it down through the centuries. Let's see. The USSR and China gave up central planning by the politicians. I guess the US demands to find out the hard way.
- kemp34, on 07/14/2009, -0/+12Not to mention $50 trillion + of unfunded entitlement liabilities...
- DrDragun, on 07/14/2009, -0/+11Most "stuff" can be made so cheaply by automation on manufacturing lines that this old backbone will become a smaller and smaller slice of the job market.
Where to next? Kurt Vonnegut's Player Piano is a good book to read on the subject. I guess Services can always grow... more fitness instructors and piano teachers... oh wait the Internet does their job pretty well for free...
uh oh - DangerCollie, on 07/14/2009, -1/+12An intellectually disjointed article that basically says that our low unemployment was a artifact of the bubble economy, which is basically true.
We've spent all that time undermining our jobs base by actually paying corporations to ship jobs overseas. And now we're paying the price. - appleofdischord, on 07/14/2009, -4/+14Cutting back hours to 20 per week would double the amount of jobs!
- TalenGTP, on 07/14/2009, -0/+8Taxing the hell out of people who provide the jobs doesn't help much either.
- buzaman, on 07/14/2009, -1/+8-Allow the prices to fall.
-Begin to save
-Cut government spending, both domestic and abroad.
-8 year plan to eliminate Corporate and Capital Gains taxes
-2 Stage, 4 year plan to eliminate the income tax.
-Lift regulations.
-Audit then End the Fed
-Begin 30 year plan to phase out SS and Medicare
-Get budget into the Black and pay down the debt. - MacEnvy, on 07/14/2009, -0/+7Teachers are paid by the individual states, not the federal government. And the states are flat broke.
- Cputerace, on 07/14/2009, -0/+6Great point. The problem is that there is not enough sustainable work, not that there are not enough jobs.
repost from below:
Jobs are only sustainable if there is true work. True (sustainable) work can only be created when people have money to invest. Money to invest can only sustainably come from people saving (not stimuluses). Saving will never come with interest rates at 1%.
End the fed. Let the market set the interest rates, and see how many more people will start saving when the interest rate hits 10-15%. All that extra savings will provide the (sustainable) liquidity in the credit markets that is so sorely needed for investment (i.e. jobs) - TalenGTP, on 07/14/2009, -0/+6Hopefully a lot of us will rise to the challenge and fix this in 2012
- phalanxcronos, on 07/14/2009, -0/+5First stop trying to burden employers with higher taxes. No, I'm not talking about the executives of large companies making $10m but small business owners. Everyone has their hand in our pockets, the state (NJ) is talking about making families with incomes over $150k pay higher taxes, Obama wants families making over $250k to pay higher taxes. Annual fees increasing, etc, etc. If employers have to pay $10k, $15k, more a year just to operate....do you really think they are going to higher anyone? Also $250k doesn't go as far as you would think depending on your location.
Also, I'm not going to point any fingers but somewhere in the past 15yrs someone decided that home ownership should be a right and not earned, they encouraged banks to give mortgages to people who had no business even asking for one. Letting people borrow with 0% down when they made $10hr. Now the people who were smart built up a small business or has a good career has to pay for these idiots. If it were up to me I'd cut off all welfare programs and bailout programs. - Barackalypse, on 07/14/2009, -1/+6I'm so happy to read an economic piece about our current crisis from someone other than Paul Krugman of the New York Times that recognizes the role monetary policy played in crashing our economy again and doesn't suggest the solution is the Government borrow more money to try and fix it.
- brim4brim, on 07/14/2009, -0/+5Spain was in a massive constuction bubble too.
Newsflash, economic bubbles or pyramid schemes are bad ideas.
Successive governments only have an interest in unprecedented growth during their time in power and the system encourages this cyclical mess.
And this is why we are moving toward the green economy. Politicians are bankrupting nations through poor decision making and trying to influence the economy and pushing and encouraging false growth so that declines and corrections of epic proportions are required. - jeffwmartin, on 07/14/2009, -0/+5Damn! Why didn't someone think of that already? The way to save jobs is just keep people on the payroll. Who cares if we actually have money to pay them!
- Elranzer, on 07/14/2009, -0/+5...Manufacturing jobs outsourced to China.
...Customer servicing jobs outsourced to India.
...Maintenance jobs to illegal immigrants.
And people wonder why our job market has collapsed. - sc0ttius, on 07/14/2009, -1/+6Go read Krazy Karl... he's nuts, but he is well educated.
http://market-ticker.denninger.net - 4AntiStupid, on 07/14/2009, -1/+5The big issue right now is a runaway government scaring the crap out of business about what they'll try to take control of next. You went to keep your workforce small when the government slaps with you new employment related taxes and regulations.
- DJMattB241, on 07/14/2009, -0/+4Just remember not to blame capitalism when the economy crumbles. Capitalism was never even given an honest chance.
- quarando, on 07/14/2009, -1/+5Criticism of the Fed is certainly warranted, it is little more than a banking cartel at this point. The main problem that led to this financial collapse, however, is much more fundamental. The problem stems from an inherent inefficiency in Capitalism, namely the underpricing of systematic risk. Any corporation or business operates by assessing how risky their actions are to themselves and their own interests. They never consider the risk their actions might create for the whole system. This leads to a potentially vast underestimation of real risk, as happened in the current financial crisis.
The Fed contributes to the scale of the problem by offering cheap credit and backstopping potential losses to large firms, encouraging even greater risk taking. - kentifer, on 07/14/2009, -0/+4Context: http://www.bloomberg.com/apps/news?pid=newsarchive ...
- MrPatriotMan, on 07/14/2009, -0/+41) Well lets see if our Government would close the trade deficit that has existed for years between the USA and China and other countries. Put tariffs on Chinese goods (collect tax money from the tariffs) like they should have a long time ago to make them priced the same as American goods so we dont have more jobs outsourced to overseas because people in other countries will always be able to produce goods cheaper because they tend to not have labor laws like we do. Stop the flood of H1b visas which destroy more American jobs by giving tax incentives for highering foreign workers over American workers!!!!
2) Next stop running the Government on borrowed money!!!!!!!!!! Cut spending and make smart decisions on what to spend on that will create jobs (bridge building, water dams, nuclear power plants, parks and mountain bike trails, public goods that everyone can benefit from) Since foreign debit is 42.5 percent held by foreigners with the top country I still believe is China! (So stop buying Chinese goods if you can)
3) Stop them making stupid ass decisions with our tax money (Write, call and complain to your congress man, senator, county leader, etc.)!!!!! And throw these smucks out that suck and actually get people in there that understand a profit and loss statement, understand economics and the dangers of money not backed by any tangible assets such as gold or sliver (lots of articles have been writing on this subject Fiat Money Failures).
http://www.rapidtrends.com/examples-of-fiat-money- ...
http://www.moneyweek.com/investments/why-paper-mon ...
4) Profit!?!?!?! And jobs after we actually correct some of the real problems with the USA and stop putting a bandage on another 4 year problem.
5) Stop your bitching and do your job!!!! The reason why jobs are so hard to create is because politicians have created ***** up laws and have not regulated things that need to be regulated and have basically sat around on their asses and have done a poor piss ass job over the past 35 years. Your suppose to be in charge you pansies and I don't want to hear how hard something is. I want you to correct the ***** problems and stop bitching about it like an ass. Go ahead and rip off my ideas (open source it) and claim it as your own if its for the good of the country I'm all for it. And remember always check your facts and think for yourself when coming to any conclusion because journalism today sucks!
When the people fear their government, there is tyranny; when the government fears the people, there is liberty.
- Thomas Jefferson - twomeyw23334, on 07/14/2009, -1/+5Much of that belief is based on old economic statistics that aren't valid anymore. Most trade deficit numbers, for example, would consider a company such as Apple simply as a Chinese goods importer, and consider the massive amount of engineering and software work they do in America as a worthless / non-productive waste of time. It's obviously ridiculous to think that way. And.. if your going to draw lines in the sands and analyze goods flowing in and out of them... where do you stop? Why not draw a line around cities? They would appear to have massive trade deficits since most people inside cities aren't manufacturing anything.
Engineering, service, art, etc. can have value just as a physical product can. - Shwaavay, on 07/14/2009, -1/+5End the FED
- Logjammer, on 07/14/2009, -0/+4This is not an inherent inefficiency in capitalism. The mere existence of the Fed acts as a morally hazardous insurance policy for financial institutions against losses that would never be underwritten by private insurers, thus allowing those institutions to take risks they otherwise never would. This is why risk was underpriced.
- TalenGTP, on 07/14/2009, -1/+5Regan took over a WORSE economy and turned it around within 2 years. I fear to see what the state of things will be 1.5 years from now.
- DrDragun, on 07/14/2009, -0/+4You first need to convince hot women to be attracted to guys that live that lifestyle... then it will be so. That's what all this crap is for now anyway.
- flip2trip, on 07/14/2009, -0/+4"You don't start a business to create jobs, you don't run a business so people can have jobs. YOU OWN A COMPANY TO MAKE MONEY, YOU SELL A PRODUCT/SERVICE TO MAKE MONEY."
Dugg for this point alone-- even if it is in caps, which I usually just bury. - TalenGTP, on 07/14/2009, -0/+4Who is going to pay for it, and what will be produced to sustain it? It's not just about giving people a paycheck, we need to revitalize the industries that drive this economy. And that's NOT done by putting more people on the government payroll, which just puts more tax burden on taxpayers.
Think a little bit about what you're saying. This isn't rocket science. - Deguello, on 07/14/2009, -1/+5This article is right on the *ahem* money. For years there have been economists that have said we could not keep going on the way were were..no one listened...there were those that said stop sending our manufacturing jobs overseas...people listened...no one did anything... people said that the housing market could not be sustained in this manner with inflated and false values.... no one listened...but it invariably was the straw that broke the financial back of this nation.
This is economy is in a slow burn and it cannot be fixed as it stands. Several commented that manufacturing is the backbone of this economy, or was.... We will see the bottom of this thing when bread ends up being $40.00 a loaf. Until then..if you have a job or source of income...keep it as long as you can. - synapz, on 07/14/2009, -0/+4@quarando:
Then why did this happen all at once, and just now? Your theory doesn't explain the boom/bust cycle, where kemp34's does. - dmm219, on 07/14/2009, -0/+3you live under a rock? This guy has been writing articles like this for MSN money for years...
- agvance, on 07/15/2009, -0/+3That is the most honest thing I have ever read on Digg.
But you know they are going to blame capitalism. - inactive, on 07/14/2009, -0/+3Well, he must have been the only one writing articles talking about continued economic deterioration. Go turn on the cable news outlets right now, they are all blabbering on about how cheap stocks are right now and how the economy has stabilized.
- Necoras, on 07/14/2009, -0/+3Green jobs are not inherently bad, assuming that they are profitable without massive government subsidies. If they require constant influxes of government capital, then you've got a circular system with a huge green hole in it.
Creating new manufacturing jobs which happen to build more efficient buildings, wind turbines, nuclear power plants, and solar farms, all of which are potentially profitable, is ideal. - mikejordan, on 07/14/2009, -0/+3Who has time to create domestic jobs? Shutting down US based operations and sending all those jobs overseas is quite time consuming, and not to mention very exhausting. Shoot, once I'm done exporting all the jobs, there just aren't any left for the domestic folks. And, when I scrape up more there just aren't any left after I ship that batch overseas.
- Shwaavay, on 07/14/2009, -4/+7Every liberal who reads that is gonna smack themselves for not coming up with it.
- MrFunStuff, on 07/14/2009, -0/+3@quarando
I would not say this is inefficiency in free market Capitalism because what the Fed is doing is essentially prices fixing, changing interest rates to what they want, instead of letting the market decide. We also had government mandated rating agencies that were rating subprime securities as triple A. Assuring investors that it was a safe investment. With the combination of cheap credit and triple A ratings, a little investment into the housing market turned in to massive investment into the housing market, with investor assuming there was no risk.
Now what do I mean by government mandated rating agencies? Money market funds , pension funds are required to purchase rated securities. So theirs is an artificially created demand for rating agencies.
The Credit Rating Agencies, like Standard and Poor's and Moodys, gave AAA ratings to large numbers of securities that went bad last year. These agencies' ratings were important in part because government regulations required pension plans, insurance companies, etc, only to purchase AAA rated securities. The Credit Rating Agencies were paid by the companies they rated and also paid generous consulting fees by those companies.
The Credit Rating Agencies and Low interest rates were thus a government failure that was at the center of the financial crisis. Yet, the Obama financial reform plan largely leaves the system in.
http://rightcoast.typepad.com/rightcoast/2009/06/o ...
The problem stems from the inherent inefficiency of central economic planning. - SocialPoison, on 07/14/2009, -0/+3You should google a bit on the criticisms of flat or fair taxes. http://www.lewrockwell.com/vance/vance168.html
Care to elaborate on #1 there, though? Which regulations? - tmbrown, on 07/14/2009, -0/+3And Dems are still mulling the possibility of another "stimulus".
- zeth006, on 07/14/2009, -0/+3I think we've all (or most of us) have all come to the consensus that the mortgage crisis came about as a result of laws created by both parties.
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