New Jobs Disporportionately low paying

Discussion in 'Too Hot for Swamp Gas' started by gatordowneast, Aug 4, 2013.

  1. Gatorrick22
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    Gatorrick22 Well-Known Member

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    Please be honest with yourself. Regulation with red-tape, to the point of stalling or stopping work, kills jobs and slows industry. This causes companies to fire or let-go employees. That with Obama-scam added to the equation have killed jobs, FACT!

    Talking to the Leftists is tantamount to talking to the lead character in Memento. We (on the Right) have to reset the discussion to reiterate everything we've ever said before, so we can carry a conversation with presumptions and facts that were already stated before in previous conversations.
  2. mdgator05
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    mdgator05 Premium Member

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    As I was saying in another thread, if you really think that an economy based on free trade across national borders in capital but with heavy controls on the movement of labor (both legal as well as cultural and language-based) is going to deliver high paying labor in large quantities, you really don't get supply and demand.

    Right now, if you want to make money, you better already have money to invest into corporate ownership, so that you can share in the profits. Labor is becoming cheaper and a far less important part of the economy. That process is just starting to move towards the higher skill jobs, but it is coming to even those.

    This progression will lead to less social mobility (if you started poor- you will be more likely to stay poor). However, it is the end stage of free capital trade, controlled labor markets, continued technological innovation, and relatively limited redistribution. Both the good parts and the bad parts of it.
  3. gatordowneast
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    gatordowneast Well-Known Member

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    You may be in competition for the guy to turn out the lights when this sad excuse for an administration is kicked out of DC. Hopefully they won't steal the china and silver like the Clinton gang and perhaps they won't steal keyboard keys (W) like the staffers. The excuses made for Obama and his lack of meaningful results are unparalleled in my lifetime. Of course we all know why.
  4. mdgator05
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    mdgator05 Premium Member

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    So high corporate profits are now indicative of a difficult business environment?

    The inability to actually discuss the most important metric for a business (their profits) is not terribly surprising. It doesn't match with the idea of starting from a conclusion and working back to try to find data to support that conclusion after declaring it.
  5. gatordowneast
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    gatordowneast Well-Known Member

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    Do you own stocks? If so, why not research companies and check what their top line revenue has done. Check what their borrowing costs are. Check their employee head count since 2007. You will find your answers.

    I do not argue with people who want to change the topic constantly. It reminds me of Obama and the regime. The thread was job creation...low paying. Corporate profits have been beaten to death and we all know the reason and it is not Economic Growth!
  6. gatordowneast
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    gatordowneast Well-Known Member

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    MD- From another thread...NC Bull hit the proverbial liberal nail on the head.

    "It's amazing how ignorant most liberals really are.

    Spending more than 6T to prop up the economy and the Fed continuing to make 85B purchases are the predominant reasons the market is up.

    It wouldn't have mattered if either a Pub or a liberal had been elected the POTUS.

    Yet liberals want to take claim for an economic comeback (BS) based upon the Dow while making the rich richer and simultaneously criticizing them for greed.

    Just amazing."

    Read more: http://www.gatorcountry.com/swampgas/showthread.php?t=267399&page=3#ixzz2b8YTYMxo
  7. mdgator05
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    mdgator05 Premium Member

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    You brought up the business environment. I am sorry that now you don't want to talk about the issue you first raised on this thread.

    As for revenues, who honestly cares? This is basic finance. Top line revenue is not the driver of stock prices. Stock prices are (theoretically) the present value of all future cash flows (profits). Most firms don't care about top line revenues as long as their profitability is sustainable.

    Firms are focused on increasing efficiency, driving up profits by lowering costs. We could certainly argue about the importance of different business functions all day, but current corporations are more oriented towards operations, logistics, and especially finance personnel, leading to an orientation of improving efficiency rather than trying to expand customer bases.

    Amongst the reasons that firms have been so successful at this:
    1. Low cost of capital, which you brought up previously. This has allowed firms to obtain new capital at very cheap rates. This is also a somewhat depressing force on labor markets, as it makes capital investments more attractive than labor investments. This is an effect on the rate of change in labor demand, as obviously somebody has to create the new capital.
    2. Rapid technological development. New technologies have made distribution, logistics, and other operations cheaper. Interestingly, this is both somewhat a creation of the low cost of capital (again this has been driven by the availability of B-2-B customers since their cost of capital is so low) and a driver ensuring that we really don't have to lower the money supply, as it acts as a deflationary force.
    3. Globalization has allowed firms to get cheaper and cheaper labor and overall business expenses.
  8. mdgator05
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    mdgator05 Premium Member

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    We get it, you both are good at name calling and declaring others ignorant. That doesn't make your arguments stronger. The spending has been cut back considerably, and yet, corporate profits are sustaining pretty easily.

    As I said, the Fed can keep the cost of capital low because we have massive deflationary pressures balancing the inflationary pressure of cheap money. No reason to change it at this point, although our Fed is pretty cautious on inflation, so they are likely to (very) slowly start to increase it.

    BTW, I agree that it probably didn't matter who was President, at least not in the short-term. These economic forces are far larger than anything in which government is currently involved. Neither party seems that eager to leave the current economic system of free capital movement with immigration controls limiting labor movement. As long as both parties support the current system, and propose very limited adjustments to it without large effects, expect a relatively similar economy, with massive corporate profits and depressed labor rates (wages).

    Hopefully for you, you weren't taken in by the hucksters telling you to get out of the markets because it was all going to collapse 3 years ago, 2 years ago, 1 years ago, right around now, or 6 months from now. Those that were missed all of the economic gains, as corporations are capturing all of the economic gains.
  9. RealGatorFan
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    RealGatorFan Premium Member

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    You can preach timing the market all you want but try to time it when it falls bud. There's is no way anyone will be able to know when to get out...before it's too late. We lost 52% of the market in 2008-2009 in a matter of 5 months. The groundwork we are building now could plummet the market far worse than 52% of for longer period of time. You see we were under $10 Trillion in debt in 2008-2009, so when the market does collapse, there is nothing the Fed will be to do except watch. They are hoping we can buy our way out of this and ride it when it does fall. The question is when.....would I go all-in right now? Hell no.
  10. oragator1
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    oragator1 Premium Member

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    This is from 2004. It's not to "Blame Bush" or say "He did it too", it's to make the point that again, as I mention every time one of these threads pop up, it's much longer systemic pattern. This is from 2004 during the last recovery:

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ag.ujNZ.MUjo

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