But I thought the economy was doing so well...

Post #163,214 by lincoln 7/7/04 8:58:27 AM Reply	But I thought the economy was doing so well... Reductions expected to pick up in second half of year U.S. employers in June announced plans to cut more than 64,000 jobs, a 12 percent decrease from May but a 7.8 percent increase compared with June 2003, according to a private survey. [...] Although June's job-cut numbers were higher than a year earlier, payroll reductions so far this year have slowed considerably. Companies have said they would shed 472,735 workers, 25 percent fewer than compared with the first six months of last year. But the number of job cuts will likely increase through the second half of 2004 as companies review the year's financial results, said John Challenger, chief executive of the Chicago-based placement firm that compiles the survey. [...] Challenger said it is likely that fewer jobs will be created. Challenger said U.S. companies announced plans to hire 38,377 workers in June, 31 percent fewer than in May. He said any new job growth would come in the transportation and technology sectors. [link\|http://www.statesman.com/business/content/auto/epaper/editions/wednesday/business_04be0a37c097a18100a8.html\|source] lincoln "Windows XP has so many holes in its security that any reasonable user will conclude it was designed by the same German officer who created the prison compound in "Hogan's Heroes." - Andy Ihnatko, Chicago Sun-Times [link\|mailto:bconnors@ev1.net\|contact me]
Post #163,267 by a6l6e6x 7/7/04 1:27:17 PM Reply	There's a possibility those that are saying the ... economy was doing so well are lying. But, you knew that. :) Alex "If I seem unduly clear to you, you must have misunderstood what I said." -- Alan Greenspan, Federal Reserve chairman
Post #163,649 by orion 7/9/04 7:50:06 PM 7/9/04 7:58:40 PM Reply	That depends of what kind of economist is viewing the economy. The Classical or Kaynesian economists. They also debate over how the unemployment numbers are calculated. Some information for you to chew on: [link\|http://www.cbo.gov/showdoc.cfm?index=4985&sequence=2\|http://www.cbo.gov/s...x=4985&sequence=2] Notice the chart, September 11, 2001 put the GDP into a nosedive and a deficit. Notice how long they forecast before there is a surplus again. Bush has the idea to create jobs by cutting taxes: [link\|http://www.cnn.com/2003/ALLPOLITICS/02/27/bush.tax.package/index.html\|http://www.cnn.com/2...ackage/index.html] Not just to the wealthy, but the others as well. Apparently Bush is using both Keynesian and Classical economics here. According to this news source, the jobless rate has been the lowest it has been in 4 years: [link\|http://story.news.yahoo.com/news?tmpl=story&cid=1896&ncid=1896&e=8&u=/nm/20040708/us_nm/economy_dc_12\|http://story.news.ya..._nm/economy_dc_12] Now Classical economists claim that by supporting the supply side of the economy, you can create jobs. Keynesian economists say you can create jobs by supporting the demand side of the economy. Now macroeconomics say that consumers will consume, give them more money and they will start to buy luxury (ie normal) goods (like TV sets, etc) instead of low cost (ie inferior) goods. Maybe instead of hamburger they buy steak? Maybe they invest the money? Their spending increases the GDP. This is Keynesian economics. Large Corporations get tax cuts, and hire on more workers. This also creates jobs. This is supply-side or classical economics. Bush apparently is playing both fields. It is said that in the third year of the first term of office, a president makes a fiscal policy that benefits everyone in order to get elected for the next term. It just might work. Anaylsis: there is a deficit, but it is slowly going away. Those in IT such as myself are finding we have to change careers to find a new job. Classical economists see the deficit as a good thing, Keynesians don't see it as a good thing but say that inflation, in under 5 percent, is a good thing for when running a surplus. The real question is "Is the economy reaching its potential output?" *"What's the use of saving life when you see what you do with it?" - Corbin Dallas "The Fifth Element"* [link\|http://www.xormad.com:4096/district268\|I am from District 268]. Edited by orion July 9, 2004, 07:58:40 PM EDT Expand All History

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