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"Big Corporations are making big profits, but are not hiring additional workers, how can you call that a 'recovery'
Biz Chick analysis always begins with a sneer because she can't believe that you would ask such a stupid question and because she has to demean herself by answering such a stupid question in the first place...."Because!...It is as simple as this:
1. Uncertainty regarding Dodd/Frank legislation (Democrats fault for discussing legislation--I don't know...does that mean that the democrats are always at fault or is it just a pretext to say that democrats are responsible for high corporate profits in a jobless recovery?); and
2. Big Corporations are not hiring because they are see the large unemployment numbers? Large unemployment means that demand is low and big corporations do not want to take a chance on hiring new workers because they are nervous about lagging demand.
The natural follow-up question to this:
Wouldn't it make sense to have the Federal Government inject some stimulus into the economy, SINCE BIG BUSINESS REFUSES TO DO SO, in order to pick up the unemployment and lagging demand--so that Big Business will be tempted to apply some of those huge profits to the hiring of new workers.
3. NO! Big Business needs to see the Federal Government tighten its belt and take money OUT OF THE ECONOMY...essentially, Big Business needs to see lay offs and furlows of Federal employees. The needs to make sure that the Feds creat more unemployment.
For Big Business, Federal layoffs will result in low taxes--more profits for Big Business.
For Big Business, Federal layoffs will create fiscal stability and low interest rates--more profits for Big Business.
For Big Business, Federal layoffs will create downward pressure on wages for workers that are left toiling away for Big Business, thereby creating more profits for Big Business (those workers will see just how bad unemployment is and will worker harder for less money--effeciency is key).
Final Question:
So, if Big Business gets all that it wants from the Federal Government, will they begin to hire new workers.
4. NO! (another sneer and a sigh for dramatic emphasis of her 'we have been over this already attitude') Big Business will still see lagging demand due to greater unemployment, and will need to see more belt tightening from Washington, before they feel comfortable about hiring.
See how the mind of a Biz Chick works -- NO SOUP FOR YOU--MORE PROFITS FOR HER BOSSES!!
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