Recovery Lifting Profits, but Not Adding Jobs

Recovery in U.S. Is Lifting Profits, but Not Adding Jobs
By NELSON D. SCHWARTZ

http://www.nytimes.com/2013/03/04/business/economy/corporate-profits-soar-as-worker-income-limps.html

But although experts estimate that sequestration could cost the country about 700,000 jobs, Wall Street does not expect the cuts to substantially reduce corporate profits — or seriously threaten the recent rally in the stock markets.

While buoyant earnings are rewarded by investors and make American companies more competitive globally, they have not translated into additional jobs at home.

At the individual corporate level, though, the budget sequestration could result in large job cuts as companies move to protect their bottom lines, said Louis R. Chenevert, the chief executive of United Technologies.

When companies do hire, it is often overseas, where the growth is... “You’re investing in the global economy,” she (Julia Coronado at BNP Paribas) said, “and you’re getting access to stronger growth abroad.” ...
“The Federal Reserve has done a good job stimulating financial conditions and lifting the market,” he (Mr. Harris of Bank of America) said. “It’s been less successful in stimulating job growth.”

It's not like folks with a lil sense and some foresight didn't see it coming. With the middle class all but wiped out and an inept hapless government trying to raise taxes to cover the fact that those jobless middle class workers are not paying taxes anymore, it isn't surprising that America is being called a 3rd world country by some.

I am thinking that the current government should just step aside and let the corporations take over, turn this country into a "bowl of rice a day" economy and when they have squeezed everything they can out of America, we get to watch them run like hell when the revolution starts.

At least then I won't have to watch our government "in action" anymore

It's not as simple anymore as raising and lowering the prime rate, like the feds used to do in the 80's and 90's in order to maintain steady, and what we thought sustained economic growth. Those fundamentals unfortunately no longer exist, thanks mostly to the global economy and the global economic slowdown the industrialized world is currently in.

The Dow reached an all-time high today: http://www.washingtonpost.com/business/economy/dow-hits-record-high-markets-undaunted-by-washington-budget-gridlock/2013/03/05/b6621c70-81e0-11e2-b99e-6baf4ebe42df_story.html?hpid=z2

Yet those who benefit don't seem to want to hire me. . .

The rich get richer. Think of all the people who would have benefited from this if they didn't have to use all their 401(k) retirement money to survive when their unemployment ran out!! If this doesn't crash, it is going to eliminate the middle class in this country.

Exactly the government is getting less tax revenue due to so many people being unemployed, and their is a record number of people on food stamps and unemployment . Almost everybody I know is either collecting unemployment or food stamps. So this economy is creating a whole class of people dependent on government and not paying enough taxes, for no fault of their own, but because of greedy corporations.

Just saw this video about just how bad wealth inequality in America is: https://www.youtube.com/watch?v=QPKKQnijnsM

Basically, the top 1% richest Americans own 40% of the nation's wealth. Unbelievable.