Here comes the other economic shoe dropping...

[Coito ergo sum]

I know full-well what socialism means. I can point you to some economic discussions, however, where Europeans descry capitalism in favor of whatever their system is.

Do go ahead. I suspect those discussions will turn out to be about their superior variants of capitalism - a capitalism with a humane face, which socialists will probably regard as capitalism with a humane facade - to the dog eat dog style laissez faire capitalist ones. Until the western European countries start nationalising privately owned means of production they do not eschew capitalism. Their policies confine themselves to making capitalism more user friendly instead. Once again, I suggest you familiarise yourself with the differences between socialism and social democracy.

Well, I understand the distinction.

But, is this social democratic capitalism a good thing - caring, kind and gentle? Or, is it still sucky capitalism?

[Hermit]

I know full-well what socialism means. I can point you to some economic discussions, however, where Europeans descry capitalism in favor of whatever their system is.

Do go ahead. I suspect those discussions will turn out to be about their superior variants of capitalism - a capitalism with a humane face, which socialists will probably regard as capitalism with a humane facade - to the dog eat dog style laissez faire capitalist ones. Until the western European countries start nationalising privately owned means of production they do not eschew capitalism. Their policies confine themselves to making capitalism more user friendly instead. Once again, I suggest you familiarise yourself with the differences between socialism and social democracy.

Well, I understand the distinction.

But, is this social democratic capitalism a good thing - caring, kind and gentle? Or, is it still sucky capitalism?

Opinions on that would depend on whether one is a communist, a libertarian or somewhere in between. To me it is - adapting a quote by Winston Churchill here - the worst form of government, except for all those other forms that have been tried from time to time.

[Coito ergo sum]

The chief spokesman for pharmaceutical manufacturers says President Obama has stuck two thorns in the industry’s side at a time marked by uncertainty as lawmakers contemplate cutting health care programs and battles over the new health care law wind their way through the courts.

When the president presented his deficit-cutting plan last week, he included measures that will drive up drug prices and squash investment in companies that develop drugs and medical devices, said John Castellani, president of the Pharmaceutical Research and Manufacturers of America (PhRMA).

http://www.washingtontimes.com/news/201 ... rmaceutic/

So...we're trying to stimulate the economy, and one of the ways to do that, apparently, is to make it tougher to do business and make it more expensive to do business, in one of the United States' most successful industries.... gotcha! Makes sense.

[Ian]

The number of people seeking unemployment benefits fell to its lowest level in five months, while economic growth, though still anemic, was better than expectations.

Weekly claims slipped below the psychologically important 400,000 mark, falling 37,000 to 391,000. Analyst had expected a drop of 3,000.

The final gross domestic product reading for the quarter was at 1.3 percent, against estimates of 1.2 percent and ahead of prior estimates of 1.0 percent.

The number of people seeking unemployment benefits fell sharply last week, an encouraging sign that layoffs are easing.

http://www.cnbc.com/id/44714594

Former Morgan Stanley chief U.S. investment strategist Byron Wien remains an optimist and sees the stock market rising by the end of the year, he told CNBC Thursday.

"I don’t think we’re in a recession," said Wein, vice chairman of Blackstone Advisory Partners.

"We've had good news on initial unemployment claims, pretty good capital goods orders. I know earnings are going to be strong. Housing can’t get worse…It isn’t like you’re at a point where a lot of bubbles are about to burst. The bubbles have already burst. Things can get better because they can’t get worse."

His optimism extends to the stock market. He doesn't expect "a booming bull market, but we're in a bottoming process here and stocks will be somewhat higher at the end of the year." He finds stocks in the technology and energy sectors attractive.

The economy will improve as demand increase,s but "tax incentives and low interest rates are not going to create demand...You need some form of stimulus program," particularly in infrastructure projects, Wein said.

"Innovation is one thing we’re good at and we have to do something to encourage those industries."

http://www.cnbc.com/id/44722602

Just "applying consistency" here.

[Coito ergo sum]

Announced U.S. Job Cuts Rise 212% From Year Ago, Challenger Says http://www.bloomberg.com/news/2011-10-0 ... -says.html

U.S. employers announced the most job cuts in more than two years in September, led by planned reductions at Bank of America Corp. (BAC) and in the military.
Announced firings jumped 212 percent, the largest increase since January 2009, to 115,730 last month from 37,151 in September 2010, according to Chicago-based Challenger, Gray & Christmas Inc. Cuts in government employment, led by the Army’s five-year troop reduction plan, and at Bank of America accounted for almost 70 percent of the announcements.

To actually "apply consistency" we'd want to point out that the 4 week moving average is still well over 400,000, at 417,000 "new claims" per week. That is very high, and doesn't look good. The single week unadjusted (these things typically go up after a few weeks after the figures are revised by the Department of Labor) drop of a 37,000 "new claims" is not much of an indicator of anything positive.

Moreover, we ought to apply consistency in interpreting these numbers. We should recall that when Bush was President, folks would routinely look at unemployment numbers with a jaundiced eye, suggesting that 5.4% unemployment was itself unacceptably high, and also understated because the Bush White House controlled the Department of Labor Bureau of Labor Statistics and "cooked the books." So, since the current White House also controls the DOL BLS, we can rest assured that the books are being cooked, and that whatever the numbers are now, they are artificially low and that the reality of unemployment is that it's probably much higher. THAT would be applying "consistency." (well, of course, we could just assume that the current White House is always honest and would never do that....)

[Coito ergo sum]

Electric Bills About To Spike
Oct 5, 2011 12:14 AM EDT
Utilities across the country need more money for grid updates and pollution controls, and are passing the huge bill on to consumers. Laura Colarusso on why electricity bills are rising.

http://www.thedailybeast.com/articles/2 ... rades.html

Get ready folks!

Remember, all this is necessary because of our unsustainable lifestyles. Higher electric bills will get you middle class and poor energy hogs to turn off the air conditioning, and put the heat down to 65 degrees Fahrenheit. Barbara Streisand and Hollywood environmentalists, and Al Gore, will still be able to afford all the comfort they want, but with love for the poor and the middle class, tax the fuck out every small avenue of comfort the poor and middling folks have: want to smoke a cigarette - tax the fuck out of it! Want to be warm or cool, as the case may be - that's unsustainable! You want to drive somewhere for a weekend away - fuck no! Gas prices are already too low! Raise them! Let's subsidize the fuel ethanol boondoggle so that corn and sugar prices go through the roof, which along with higher fuel prices, send grocery prices through the roof!

[Coito ergo sum]

Just "applying consistency" here.

More consistency for you, Ian:

nitial claims for state unemployment benefits climbed 6,000 to a seasonally adjusted 401,000, the Labor Department said, from a revised 395,000 the prior week.

http://www.cnbc.com/id/44798718

[Hermit]

Moreover - http://www.freep.com/article/20110511/B ... ent-levels GM, Ford, Chrysler adding jobs, near pre-crash employment levels

With General Motors promising Tuesday to add or retain more than 4,000 jobs, the Detroit Three are gaining credence as job creators.

In fact, they're on course to return to the pre-crash employment levels of 2008.

Ford, which restructured without federal aid, now has 76,000 workers -- more than it had in 2008.

Ford also has promised to add 7,000 workers in the next two years, hiring that starts late this year.

Chrysler added 4,300 jobs last year, ending 2010 about 600 shy of its 2008 employment level of 52,200. It also plans to hire 1,000 more.

At GM, U.S. employment stands at 77,000. Based on its forecasts, GM could employ up to 85,000 in the U.S. in the next two years -- closer to the 92,000 it had in 2008.

[Coito ergo sum]

And, even with that good news, unemployment still sucks nationwide...

[Gawdzilla Sama]

And, even with that good news, unemployment still sucks nationwide...

If they really wanted to work they'd find jobs.

[Azathoth]

"We've had good news on initial unemployment claims, pretty good capital goods orders. I know earnings are going to be strong. Housing can’t get worse…It isn’t like you’re at a point where a lot of bubbles are about to burst. The bubbles have already burst. Things can get better because they can’t get worse."

http://www.cnbc.com/id/44722602

Just "applying consistency" here.

famous last words anyone?

[Coito ergo sum]

"We've had good news on initial unemployment claims, pretty good capital goods orders. I know earnings are going to be strong. Housing can’t get worse…It isn’t like you’re at a point where a lot of bubbles are about to burst. The bubbles have already burst. Things can get better because they can’t get worse."

http://www.cnbc.com/id/44722602

Just "applying consistency" here.

famous last words anyone?

Considering the fact that the overwhelming number of people expressing opinions on Rationalia lean left and/or liberal, and are strongly pro-Obama Administration, it is that view that requires balancing.

[Coito ergo sum]

Spending up 5% in 2011....

data released by the Treasury Department on Friday show that, so far, there haven't been any spending cuts at all.

http://www.investors.com/NewsAndAnalysi ... s-Year.htm

This can't go on....

And, I'll say one thing for Ron Paul - he doesn't mess around:

Ron Paul’s opinions about cutting the budget are well-known, but on Monday, he got specific: the Texas congressman laid out a budget blueprint for deep and far-reaching cuts to federal spending, including the elimination of five cabinet-level departments and the drawdown of American troops fighting overseas.

There’s even a symbolic readjustment of the president’s own salary to put it in line with the average American salary

.

Read more: http://www.politico.com/news/stories/10 ... z1b4tymqKo

[Hermit]

I'll say one thing for Ron Paul - he doesn't mess around

Does so.

Paul would also make far-reaching changes to federal tax policy, reducing the top corporate income tax rate to 15 percent, eliminating capital gains and dividends taxes and allowing for repatriation of overseas capital without tax penalties. All tax cuts enacted under former President George W. Bush would be extended.

Read more: http://www.politico.com/news/stories/10 ... z1b5jAImR6

The good ole trickle-down theory. How many more times will they try that one out? "Insanity: doing the same thing over and over again and expecting different results." Actually, I think it's a con rather than a delusion.

[Coito ergo sum]

Higher taxes hurt businesses. Very simple concept.

When you tax a thing, you make it more expensive. That's the idea behind, say, cigarette taxes - raise the price to discourage people from buying them. Yet, you would pretend that the concept somehow becomes inapplicable to any other product or service.