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Jobless Recovery

Aluisious

Aluisious

Well-known member
Joined
Jun 7, 2007
Location
San Jose
Moto(s)
2016 Multistrada 1200S
Name
Frank
I want to know what a jobless recovery is supposed to be.

If there's no jobs, what's recovering? Corporate profits? Well no duh...we've handed corporations a couple trillion dollars of freshly printed dollars from the public pocket. But you can't keep doing that.

All this debt and few people working productively to cover it makes me nervous. All my accounts are back to their original value or better from before the crash so I'm thinking perhaps the thing to do is sell all my stocks and wait for the next shoe to drop.
 
Companies move out of the country. Leaves a vacancy in the US for another company that does the same thing as the one that left. Consumer buy the US stuff.
 
Yes, the "recovery" part of the term "jobless recovery" refers to corporate profits. The tail-end of every downturn I've been through at some point gets referred to as such, generally because it resonates with peoples fears.

In general terms, it is all part of the business cycle. Companies have to see a reason to hire before they do so. This time around isn't any different, though it is deeper than most.

Selling your stocks and sitting in cash is the worst thing you can do right now with big inflation right around the corner. If you're really serious about hitting the panic button, at least dump the funds into gold.
 
I remember back in the mid 1990s. Stocks were at an all-time high. And then a report flashed over the wire -- unemployment down! Well, the stock market lost significant points that day.

Let's face it, the system is irrational, especially when it's driven by the invisible hand...
 
Yup. Low unemployment drives wages up, which is bad for profits. Econ 101.
 
Aluisious said:
I want to know what a jobless recovery is supposed to be.

If there's no jobs, what's recovering? Corporate profits? Well no duh...we've handed corporations a couple trillion dollars of freshly printed dollars from the public pocket. But you can't keep doing that.

All this debt and few people working productively to cover it makes me nervous. All my accounts are back to their original value or better from before the crash so I'm thinking perhaps the thing to do is sell all my stocks and wait for the next shoe to drop.
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Well, corporate profits is a part of it. It also has to do with stability in the financial markets and the business environment in general. A jobless recovery is sort of a neutral zone in the economy. Markets have stabilized and may be able to maintain moderate growth, but a significant enough upswing has not been achieved to create the sort fo sustainable growth that would promotes new jobs.
 
vato_loco said:
I remember back in the mid 1990s. Stocks were at an all-time high. And then a report flashed over the wire -- unemployment down! Well, the stock market lost significant points that day.

Let's face it, the system is irrational, especially when it's driven by the invisible hand...
Click to expand...

If you're referring to post-1995, when unemployment started dropping to levels that were considered "full employment", then further drops would indeed shake investor confidence. If companies can't easily fill open positions, they find it harder to execute business plans and make profits.

Though the market does seem to react oddly sometimes, what you're describing certainly isn't an invisible hand scenario. ;)
 
The good news is that a whole bunch of baby boomers are about to turn 65 and retire.
 
Don't forget that the productivity formula needs to be reevaluated. It seems as though a widget that used to cost $100 to make in America and now cost $50 to make in China counts as $50 gain in productivity.

We are deeply and truly fucked. The American worker has been sold out, and so far their aren't enough citizens effected to force real change in our policies.
The good news is that once other segments of our population start feeling the pain, it will be too late to make any changes.
 
vaara said:
The good news is that a whole bunch of baby boomers are about to turn 65 and retire.
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Many people do not realize that this fact and the epic crescendo of thunder in Medicare that will come with it is a major reason we are having a health care reform bill pass.
 
There needs to be a tax penalty for out-sourcing.

Also, they need to get rid of the L1 visa's that allow a company to bring a foreign worker from outside of the country but pay them as if they are still living in their own country (i.e. no Fed/state taxes, no fica or health insurance) for up to 7 years! :wtf

There needs to be many prosecutions for the actions that led to the collapse.
 
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Climber said:
There needs to be a tax penalty for out-sourcing.

Also, they need to get rid of the L7 visa's that allow a company to bring a foreign worker from outside of the country but pay them as if they are still living in their own country (i.e. no Fed/state taxes, no fica or health insurance) for up to 7 years! :wtf

There needs to be many prosecutions for the actions that led to the collapse.
Click to expand...

Good luck with that. Corporations own the nation. Too many citizens are blind to that fact to change it. Salesmen and service providers, right now they aren't feeling the pain.
 
Climber said:
There needs to be a tax penalty for out-sourcing.

Also, they need to get rid of the L7 visa's that allow a company to bring a foreign worker from outside of the country but pay them as if they are still living in their own country (i.e. no Fed/state taxes, no fica or health insurance) for up to 7 years! :wtf

There needs to be many prosecutions for the actions that led to the collapse.
Click to expand...


What is an L7 Visa? Never heard of it and nothing on yahoo or google.
 
but..but wasn't Social Security supposed to save us because the Fed determined "the people" weren't able to take care of our own retirement? :rolleyes

same rhetoric used to justify a federal health care pyramid scam. And we're supposed to expect different results this time?:rofl

Human Ills said:
They can't afford to retire. They lost all their money in the stock market.
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Asphaultnaut said:
but..but wasn't Social Security supposed to save us because the Fed determined "the people" weren't able to take care of our own retirement? :rolleyes

same rhetoric used to justify a federal health care pyramid scam. And we're supposed to expect different results this time?:rofl
Click to expand...

It seems to me that the rightwing nutjobs would have had a conniption if we increased our social security withholdings. :rolleyes :rofl :rofl

At least with a government 'scam' we know that people won't be denied heath care because of 'preexisting conditions' :rolleyes :rofl :rofl
 
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