Author Topic: The Money Honey: "Businesses won't hire because of Obama and his policies"  (Read 733 times)

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Bartiromo: Stimulus Likely Didn't Save Economy –- Fed Did; Warns Obamanomics Stunting Job Growth
By Jeff Poor (Bio | Archive)
Fri, 07/09/2010 - 14:24 ET 

http://newsbusters.org/blogs/jeff-poor/2010/07/09/bartiromo-stimulus-likely-didnt-save-economy-fed-did-warns-obamanomics-st

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While some on the left side of the aisle in Congress are getting all starry-eyed about prospects of more federal stimulus spending, the first round of stimulus under President Barack Obama may have done even less to help the ailing economy than supporters claim.

On MSNBC's July 9 broadcast of "The Daily Rundown," co-hosts Chuck Todd and Savannah Guthrie interviewed CNBC "Closing Bell" anchor Maria Bartiromo from the Aspen Ideas Festival in Aspen, Colo. And Bartiromo offered her views why the economy didn't spiral out of control any more than it did. She said according to some on Wall Street, it wasn't Obama's $787-billion "stimulus" that included a huge bulk of state government bailout spending, but instead action by the Federal Reserve to put more liquidity in the economy.

"Look, there's no doubt about it - we were close to going off a cliff the weekend at Lehman Brothers declared bankruptcy, Merrill [Lynch] was sold and AIG acquired by government," Bartiromo said. "You know, I mean I think we were very close and the economy needed stimulus in a big way. It's arguable whether that stimulus that helped the economy was really because of the stimulus plan or really because of the Federal Reserve. I think most people on Wall Street will believe and will tell you that it was really the Fed action in terms of giving greater access to the banks to overnight lending that really, really got us out."

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"But you know - it doesn't matter," she continued. "I mean, here we are and we are still in a very weak situation in the U.S. economy and the recovery is quite fragile and I think at this moment in time, many people are worried that in fact it may not necessarily officially be a double-dip recession that we're headed toward but we are looking at another leg down."

Guthrie asked why that if corporate earnings look strong, as they're expected to, aren't these corporations doing more to hire and lower the overall unemployment rate in the United States. According to the "Closing Bell" host, business is looking overseas because of the uncertainty the Obama administration has put into the economy with taxes and health care.

"I think right now you have hit on the one very bullish part of the economy and that is the corporate sector," Bartiromo said. "We're heading into a new quarter where we will get  quarterly earnings and probably will be a better than expected. And the reason is because corporations have cut to the bone. They have cut employees. They have cut R&D spending. They've cut anything they can. They cut all the fat out so we are talking about enormous cash levels. What they're doing with the cash is another question. They're sitting on it. They're not investing in the U.S. economy. They're actually following the growth overseas. PepsiCo [is] building 13 plants in China. GE building more places, businesses in India. You are seeing businesses follow the growth outside of the United States. But absolutely - that is the positive. The reason that they're not hiring right now is because there is a tremendous amount of uncertainty. And that has everything to do with the policies coming out of this administration. Higher taxes in 2011, higher expenses as a result of health care costs. That's why they're not hiring."

So what can be done to encourage more hiring with all this cash on the books by major businesses? According to the "Closing Bell" host, business needs more incentives to hire and she rattled off some for MSNBC viewers.

"One they could do soon is not allow the Bush tax cuts to expire in 2011," she said. "Giving some - the end of the 2010, giving some confidence that they won't have that added expense. A lot of people are worried about that. Now, Tim Geithner had an important interview with Larry Kudlow last week and Geithner said that he is prepared to keep capital gains and dividends taxes at 20 percent. This was very, very positive and I think that is part of the reason the market has been rallying the last three days because there was an expectation that capital gains taxes would go all the way up to 39.6 percent. If, in fact, the administration keeps it at 20 percent, I think that's very positive."

Read more: http://newsbusters.org/blogs/jeff-poor/2010/07/09/bartiromo-stimulus-likely-didnt-save-economy-fed-did-warns-obamanomics-st#ixzz0tE2vYjjJ


Soul Crusher

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Firms ‘extremely reluctant’ to hire
ocregister.com ^ | 7/6/10 | Jan Norman, small-business columnist

Posted on Wednesday, July 07, 2010 12:22:28 AM by Nachum


Few small-business owners would hire more workers even if they had more money, according to the monthly American Solutions survey.

Almost half (46%) would put the extra money into savings and 15% would hire more workers. One in 17 would use the money to delay laying off existing employees.

This is the basic reason for the lack of job creation even though most experts think the economy is no longer in recession.

“The cautious behavior shows entrepreneurs are still very reluctant to make any large investments or outlays of new capital given the current economic environment,” says American Solutions, a group chaired by former Congressman Newt Gingrich, that is conducting jobs summits across the country including Irvine.


(Excerpt) Read more at jan.ocregister.com ...

Soul Crusher

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bump for 240 and the rest of Team Cum Rag

Straw Man

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If businesses have demand they will hire more people and won't give a shit about a few % in a marginal tax rate

same goes for people.  No one who is self employed and producing income suddenly decides to stop working when they hit some marginal income bracket

The thing that's holding back the economy is housing and lending in general

The RE Sector is the biggest problem

Soul Crusher

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Which wont improve until the jobs situation is fixed, which wont happen until obama is ousted from office. 

Straw Man

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Which wont improve until the jobs situation is fixed, which wont happen until obama is ousted from office. 

What are the Repub plans to fix the job situation?

Soul Crusher

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What are the Repub plans to fix the job situation?

Kill the EPA, NLRB, the Czars, the Stim Bill, the massive obama debt, obamacare, dodd frank, card check, etc etc. 

Obama's presence alone is like a black thunder cloud over the nation. 

Straw Man

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Kill the EPA, NLRB, the Czars, the Stim Bill, the massive obama debt, obamacare, dodd frank, card check, etc etc. 

Obama's presence alone is like a black thunder cloud over the nation. 

How does any of that create jobs

Be specific

Soul Crusher

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How does any of that create jobs

Be specific

It doesnt, but it at least creates a climate to where businesses are not to afraid to put capital at risk for investment and expansion. 

Straw Man

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It doesnt, but it at least creates a climate to where businesses are not to afraid to put capital at risk for investment and expansion. 

so what you're saying is the Repubs have no plan

kcballer

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Meh.  They are not hiring because they don't have the market to hire in.  You fail to fathom that unless there is a need a business does not simply hire workers.  If you make more money you don't hire more workers unless you have a reason to, i.e. the current staff are unable to fulfill the tasks you give them and you are losing business because of it.  When a country has an economy dominated by consumers and you lose the consumer dollars what do you think is going to happen?  A long slow decline until consumers come back or the driving force of the economy changes.  Both are long and painful roads. 
Abandon every hope...

Fury

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Meh.  They are not hiring because they don't have the market to hire in.  You fail to fathom that unless there is a need a business does not simply hire workers.  If you make more money you don't hire more workers unless you have a reason to, i.e. the current staff are unable to fulfill the tasks you give them and you are losing business because of it.  When a country has an economy dominated by consumers and you lose the consumer dollars what do you think is going to happen?  A long slow decline until consumers come back or the driving force of the economy changes.  Both are long and painful roads.  

Just stop. It's embarrassing now. The Obama regime has bent small business owners right over the table and rammed all 36 inches of that Louisville slugger right up there....with no lube.




Small Businesses Decry Regulation

By SARAH E. NEEDLEMAN

Federal regulations are designed to protect workers, the public and the environment from unsafe or unfair business practices. But they can sometimes have the unintended consequence of stifling growth.

According to research released last year from the Small Business Administration's Office of Advocacy, it costs about $2,830 more for firms with less than 20 employees than those with 500 or more employees to comply with government regulations on a per-employee basis. In specific areas such as tax and environmental compliance, firms with 20 to 499 employees also pay significantly more than large firms.

While some economists dispute the magnitude of the disparity, they all agree that small businesses bear a greater burden than larger ones in adhering to government regulations.

"Small firms don't have the resources in-house to figure out how to comply," says Radwan Saade, a regulatory economist for the SBA's Office of Advocacy. "Economies of scale dictate that it's easier for large businesses to comply."

U.S. businesses of all sizes have long been required to comply with federal regulations in areas such as taxes, employment, the environment and economic output. They range from product- and workplace-safety laws to employee health-care rules added recently by the Patient Protection and Affordable Care Act. Small businesses also typically must comply with a host of state, county and city government regulations.

Last year, the Environmental Protection Agency enacted a ruling designed to protect consumers from lead-paint poisoning, which can lead to nerve disorders and memory loss. It requires companies that repair or renovate homes and schools built before 1978 to test for lead and use plastic sheeting, respirators and other lead-safety materials, among other practices.

An analysis of data from the U.S. Government Accountability Office by the Heritage Foundation, a Washington think tank, finds 43 of the 100 "major" rules published in the Federal Register last year burden the private sector, compared with 23 in fiscal 2009. A "major" rule is defined as one that has an annual effect on the economy of $100 million or more, stifles competition and results in higher costs.

Economists attribute the increase to a number of factors, including a perceived need for greater government oversight following the financial crisis of 2008.

To be sure, many federal regulations don't apply to all types of businesses, and some exempt the smallest of firms. In a nod to the burden placed on the business community, President Obama in January issued an executive order for a government-wide review of existing rules to remove outdated and redundant regulations. In April, he signed a measure to repeal a provision in the new health law that would have required businesses to file paperwork every time they bought more than $600 worth of goods or services.

The so-called 1099 provision was included in last year's health-care law to help cover the cost of the new plan. In November, President Obama called it "too burdensome for small businesses" adding that "it's probably counterproductive."

But, despite the review, many small-business owners say federal regulations are holding back growth. For Allen Ash, co-owner of novelty-toy maker Almar Sales Co., the costs of complying with federal product-safety rules included in laws such as the Consumer Product Safety Improvement Act and the Federal Food, Drug, and Cosmetic Act have negated any gains in profits that the 135-person company has seen as a result of the improving economic environment.

The new requirements have more than doubled the amount of work required to get the company's goods on store shelves. To meet current standards, the small New York manufacturer of children's costumes and party trimmings now tests each of its products five times, up from two a few years ago.

Mr. Ash hired a compliance director in 2008 just to keep up with government requirements. The next year, even as he laid off 20% of the company's staff due to slumping sales, he added three more compliance workers to oversee strategies for satisfying federal product-safety rules.

"A large business might already have a department to handle paperwork burdens," while a small business is likely "to take someone off another task" to fulfill government obligations, says James Gattuso, a senior fellow at the Heritage Foundation. "It costs you more to stop doing what you're doing and fill out paperwork."

http://online.wsj.com/article/SB10001424052702303365804576430453683277770.html?mod=career_newsreel#articleTabs%3Darticle



It REALLY makes sense for a firm with 100 employees to need half a dozen people working on compliance alone. Really.







What are the Repub plans to fix the job situation?

What are the DEM plans? As far as I know, they still control the presidency and the senate.

Why won't they pass a budget? If they won't even do that then how can one even expect them to have a plan to create jobs?

Keynesian economics = FAILURE.

Straw Man

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Just stop. It's embarrassing now. The Obama regime has bent small business owners right over the table and rammed all 36 inches of that Louisville slugger right up there....with no lube.


What are the DEM plans? As far as I know, they still control the presidency and the senate.

Why won't they pass a budget? If they won't even do that then how can one even expect them to have a plan to create jobs?

Keynesian economics = FAILURE.

why do Repubs always use such gay imagery

btw - you're aware that Keynesian ecomics is also based on the concept that tax breaks stimulate the economy ......right?

Fury

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why do Repubs always use such gay imagery

btw - you're aware that Keynesian ecomics is also based on the concept that tax breaks stimulate the economy ......right?

Repubs? I'm a registered independent (since I turned 18 and registered) and this past election cycle (2010) was the first time I voted for a Republican. I happen to vote based on issues I find important and am not robotic enough to toe a party line. Sorry to break your little far-leftist heart.

Funny that anyone who'd like to see this country fixed = Republican now.  :-X



Why do you REFUSE to answer that question I just asked. You've avoided it at least 5 times now.

Again, WHY WON'T THEY PASS A BUDGET? IT'S BEEN ROUGHLY 800 DAYS. How can a party claim to be cognizant of spending when they've given themselves a blank check for 2+ years now?

Straw Man

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Repubs? I'm a registered independent (since I turned 18 and registered) and this past election cycle (2010) was the first time I voted for a Republican. I happen to vote based on issues I find important and am not robotic enough to toe a party line. Sorry to break your little far-leftist heart.

Funny that anyone who'd like to see this country fixed = Republican now.  :-X



Why do you REFUSE to answer that question I just asked. You've avoided it at least 5 times now.

Again, WHY WON'T THEY PASS A BUDGET? IT'S BEEN ROUGHLY 800 DAYS. How can a party claim to be cognizant of spending when they've given themselves a blank check for 2+ years now?

you've only asked me once as far as I can see

Dems fucked up by not passing the 2011 budeget before the election last year

You know full well why they haven't passed the 2012 budget yet

Fury

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you've only asked me once as far as I can see

Dems fucked up by not passing the 2011 budeget before the election last year

You know full well why they haven't passed the 2012 budget yet

You're a fucking liar. Already knew that but thanks for confirming it.

Nice job avoiding giving an actual answer on the question. Thanks for playing. NEXT elitist, far-left retard want to step up and deflect that question?

Straw Man

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You're a fucking liar. Already knew that but thanks for confirming it.

Nice job avoiding giving an actual answer on the question. Thanks for playing. NEXT elitist, far-left retard want to step up and deflect that question?

wtf are you talking about

scroll up and tell me how many times you've asked me this question

I only see you asking me this once and you know full well why the Dems and Repubs haven't agreed on a budget yet


blacken700

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You're a fucking liar. Already knew that but thanks for confirming it.

Nice job avoiding giving an actual answer on the question. Thanks for playing. NEXT elitist, far-left retard want to step up and deflect that question?


its his way of playing tough guy,when your a little pussy all your life you can act all big and tough on the internet with no worries.i'm right you little pin armed geek :D