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Guest Post: Corporate Profits Surge At Expense Of Workers

Tyler Durden's picture





 

Submitted by Lance Roberts of StreetTalk Live,

There was an interesting article out this morning from Reuters stating: "From the companies' point of view, it makes perfect sense these days to hoard cash.  First, Congress lets overseas profits accumulate untaxed, so long as offshore subsidiaries own the cash. Second, companies have a hard time putting cash to work because fewer jobs and lower wages mean less demand for products and services. Third, a thick pile of cash gives risk-averse CEOs a nice cushion if the economy worsens.

Given the enduring hard times, you might think that corporations have used up their cash since 2009. But real pretax corporate profits have soared, from less than $1.5 trillion in 2009 to $1.9 trillion in 2010 and almost $2 trillion in 2011, data from the federal Bureau of Economic Analysis shows."

 

There is a very interesting, albeit disturbing, contradiction in the statement above.  The initial assumption would be that if companies are having a hard time putting cash to work, because there is less demand for products and services, this would infer lower revenues. The chart shows the change in reporting earnings and sales (top line revenue) for the S&P 500.  Since the beginning of 2009 the total growth in sales per share has been 21% as compared to a 206% increase in reported earnings.  This confirms our assumption that lower revenues and demand is behind the historically high levels of corporate "cash hoarding."  However, if revenue growth is weak then how are real pretax corporate profits soaring?  The answer comes down cost controls and productivity. 

 

The single biggest expense to any company is full-time employees due to payroll, taxes and benefits.  While the economy has grown since the depths of the last recession - demand has remained weak in terms of sales growth.  The lack of demand has kept businesses on the defensive with a focus on maximizing profitability of each dollar of revenue.  During the recession, and recovery, businesses have kept very tight controls on costs by reducing inventory levels, cutting budgets and maximizing productivity per employee.  This has also led to massive changes in hiring and employment.  Temporary hires (which have lower wages and no benefit costs) have substantially outpaced permanent employment since the end of the last recession.  Since the first quarter of 2009 part-time employment has increased by more than 1.5 million while full-time employment is still lower by 1.25 million.  The analysts and media have been quick to jump to the idea that temporary jobs will ultimately turn into full-time employment. However, in an economy that is growing at a sub-par rate with a large and available labor pool - the use of temporary versus full-time employment may well be the "new normal". This also explains why dependence on "food stamps" have surged by over 14 million participants during the same period.

 

In order to see the impact more clearly we need only to look at the levels of corporate after-tax profits to employees.  In 2009, coming out of the recession, the ratio of corporate profits to employees was 0.90.  Today, that ratio has soared to 1.50.  The reason for this is twofold.  First, while employment has recovered, real unemployment still remains very high.  In the most recent employment report while 84k new jobs were created - 85k people went on disability.  Out of the 84k new jobs more than 1/3 were temporary with the bulk of the remainder in lower paying service related jobs.  This is not the kind of employment picture that leads to long term increases in end demand.

 

Furthermore, over the past decade the demand on businesses to increase profits, from shareholders and Wall Street, has driven productivity higher and wages lower.  Real wages are well below the long term trend due to the large, and available, labor pool which keeps wages and salary levels suppressed.  Lower wages are double edged sword for businesses.  In the short run lower wages increase profitability.  In the longer term, as wages fail to keep pace with inflation, consumers struggle to maintain their standard living which forces them to cut back on consumption eroding end demand on businesses.  The cycle, which is deflationary in nature, is very difficult to break.

While it is enticing to want to force corporations to deploy the cash and create jobs - the unfortunate situation is that it is the very demands to maintain profitability that keeps them on the defensive.  Secondarily, let's not forget that we live in a free market economy and businesses are in the "business" of making profits. 

As Bernanke stated, in his recent testimony to Congress, it is imperative that Congress acts with fiscal policy changes that promotes real, organic, economic growth.  Corporations will not increase hiring, and ultimately wages, until end demand substantially increases.  Consumers can not increase demand until they have more money to spend.  This "chicken and egg" syndrome is indicative of the problem that faces an economy trapped in a deflationary cycle.  Fiscal policy that leads to productive investment, removes uncertainty about future regulatory and tax implications, and provides an environment that allows cash to be invested at profitable rates of return will ultimately break the blockade the economy currently faces. However, until then, businesses have no incentive to release their "cash hoards" as long as "poor sales", as shown in the recent NFIB report, remain their primary concern. 

For investors, the continued increases in profitability, at the expense of wages, is very finite.  It is revenue that matters in the long term - without subsequent increases at the top line; bottom line profitability is severely at risk.  The stock market is not cheap, especially in an environment where interest rates are artificially suppressed and earnings are inflated due to "accounting magic."  This increases the risk of a significant market correction particularly with a market driven by "hopes" of further central bank interventions.  This reeks of a risky environment, which can remain irrational longer than expected, that will eventually revert when expectations and reality collide.

 


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Thu, 07/19/2012 - 15:26 | Link to Comment Cranios
Cranios's picture

This sounds like communist BS. Corporations are doing well at the expense of workers - unite, Komrades!

Thu, 07/19/2012 - 15:30 | Link to Comment sickofthepunx
sickofthepunx's picture

that's your inference.  read like a straightforward analysis to me.

pretty rare find these days on zh

 

Thu, 07/19/2012 - 15:33 | Link to Comment battle axe
battle axe's picture

The reason that the Stock market is up is simple, there is no VOLUME, so it is easier and easier to effect it, it is a false flag. This bitch is going to be hit with reality real soon....... 

Thu, 07/19/2012 - 15:41 | Link to Comment Xibalba
Xibalba's picture

    "We may congratulate ourselves that this cruel war is nearing its end. 
    It has cost a vast amount of treasure and blood. . . . 
    It has indeed been a trying hour for the Republic; but 
    I see in the near future a crisis approaching that unnerves me and causes 
    me to tremble for the safety of my country. As a result of the war, 
    corporations have been enthroned and an era of corruption in high places 
    will follow, and the money power of the country will endeavor to prolong 
    its reign by working upon the prejudices of the people until all wealth 
    is aggregated in a few hands and the Republic is destroyed. 
    I feel at this moment more anxiety for the safety 
    of my country than ever before, even in the midst of war. 
    God grant that my suspicions may prove groundless."
      Abe Lincoln

    Thu, 07/19/2012 - 15:53 | Link to Comment Precious
    Precious's picture

    Easy money for banks who don't deserve it, and wealthy investors who don't need it.  Zuckerberg gets a 1.5% loan on his 6 million dollar house.   Like he needs that.  But of course, it is never enough for them. It's not even about the money to them.  It's their mentality.  It's their drive to never let anyone else take the slightest fucking perceived advantage of them.  It's their hypnotic state of material accumulation at every fucking, even insignificant, decision point.  More.  Me.  Win. 

    Thu, 07/19/2012 - 16:55 | Link to Comment CrockettAlmanac.com
    CrockettAlmanac.com's picture

    It's about the levers of control available to some people who want to win. We all want to win. We all "want to have it all," although the definition of "all" varies from person to person.

    Thu, 07/19/2012 - 15:54 | Link to Comment Dumpster Fire
    Thu, 07/19/2012 - 15:49 | Link to Comment Getting Old Sucks
    Getting Old Sucks's picture

    I always envision all the CEO's calling each other and saying "Hey Jamie, buy my stock and I'll buy yours.  Let's get a rally going here and when the muppets jump in tomorrow, we'll sell it to them and make a profit."

    Thu, 07/19/2012 - 15:56 | Link to Comment mick68
    mick68's picture

    The market is a joke and in no way reflects the real economy. In fact, it's the opposite, since it's manipulated up just about every day and represents profits gained by the slashing of jobs, cutting costs, and all sorts of dubious dealings.

    Not that this matters to greed infested investors, who don't care how many graves are dug to create their gains.

    Thu, 07/19/2012 - 15:36 | Link to Comment MillionDollarBonus_
    MillionDollarBonus_'s picture

    I have three simple solutions to this problem:

    1. Mandate that all corporations hire 20% more workers

    2. Provide a guaranteed government job for all unemployed Americans

    3. Quadruple the minimum wage so that businesses are forced to pay people decent wages

    Progressive solutions are simple and cut to the heart of the issue. But it seems that no matter how hard we try to solve these problems, libertarians always find some way to disagree.

    Thu, 07/19/2012 - 15:40 | Link to Comment pods
    pods's picture

    Please bitch don't derail another thread.

    Thanks,

    pods

    Thu, 07/19/2012 - 16:28 | Link to Comment TheCanadianAustrian
    TheCanadianAustrian's picture

    All good ideas, but I think we can do more.

    - Mandate that ALL Americans 20 or older immediately obtain AT MINIMUM a master's degree if they don't already have one. If they can't afford one, force the student to take out a loan to cover all tuition and housing costs, wiith the money paid DIRECTLY to the universities up front (don't want the students blowing the money on booze and weed), and make sure the loan is FIXED at 0.25% interest for 50 years (we need to charge some interest in order to reduce the possibility of a government budget deficit).

    - Immediately institute new sin taxes in order to increase government revenue and discourage unproductive behavior. We can start by upping the taxes for cigarettes and alcohol, but also institute the following: $20 tax (per person) for oral sex, $50 per person for premarital intercourse, $200 for sexual relations (any kind) with someone of the same sex. For divorce, the government should confiscate 50% of ALL assets of both the man and the wife up-front. This money can be used to fund pro-family awareness campaigns.

    Thu, 07/19/2012 - 15:45 | Link to Comment Toolshed
    Toolshed's picture

    You should immeditely change your screen name to Douchebag.

    Thu, 07/19/2012 - 15:48 | Link to Comment bobnoxy
    bobnoxy's picture

    If he does, will you shorten yours to 'Tool'?

    Thu, 07/19/2012 - 15:53 | Link to Comment mick68
    mick68's picture

    Cranios still thinks the US is a democracy, and communism is the threat. Can't cure stupidity I guess. Nonetheless, he's just a slave to the money, if more employment made him money he'd change his tune immediately, therefore the opinions of fools like him mean nothing.

    Fri, 07/20/2012 - 05:54 | Link to Comment AnAnonymous
    AnAnonymous's picture

    Nonetheless, he's just a slave to the money, if more employment made him money he'd change his tune immediately, therefore the opinions of fools like him mean nothing.

    ____________________

    For US citizens, everything is situational.

    It is all about being on the wrong side or the right side of US citizenism.

    As some US citizen middle class are slowly sliding toward the wrong side of it, well, they bemoan and invent fantasy.

    Secure them back on the right side and they will write songs to the glory of US citizenism.

    US citizen eternal nature.

    Fri, 07/20/2012 - 08:35 | Link to Comment TheFourthStooge-ing
    TheFourthStooge-ing's picture

    Verbally incontinent AnAnonymous let loose with:

    For US citizens, everything is situational.

    Made me laugh, since for you everything is situational. If you hate something, you label it with US citizenism. Everything else that you don't hate is then somehow a victim of the eternal nature of US citizenism.

    Very simple minded.

    Very AnAnonymousitizenismistic.

    Thu, 07/19/2012 - 16:03 | Link to Comment greggh99
    greggh99's picture

    You're right. Workers have got nothing to do with it. Each passing year production requires less and less workers (human ones anyway). Soon corporations won't need workers at all.

    Thu, 07/19/2012 - 16:32 | Link to Comment Ying-Yang
    Ying-Yang's picture

    Yes.. and machines will replace management... CRAP

    Thu, 07/19/2012 - 16:31 | Link to Comment Ying-Yang
    Ying-Yang's picture

    Bullshit.... management, owners and board members decide what to pay workers.

    Want more profits? Pay workers less. Want better moral? Pay workers more.

    If you want the consumers to be fiscally healthy then their bosses take less profits and pay them BETTER. Now see how that works?

    Wealth inequality has a lot to do with where you want profits to end up, the stockholders or employees.

    Thu, 07/19/2012 - 17:00 | Link to Comment Bunga Bunga
    Bunga Bunga's picture

    And it's very consistent that the 1% boycott all products from socialist countries like Germany.

    Thu, 07/19/2012 - 18:29 | Link to Comment TruthHunter
    TruthHunter's picture

    When Henry Ford raised workers wages to $5 per day, after determining that it would be good for business if they all owned a car, the rest of the corporate world

    thought he would ruin them.

     Within certain limits higher wages benefit employers.

    On the other hand, the total social cost of farm labor(and many other minimum wage workers) is not met  by the wages paid them.  Their retirement and medical care are subsidized by the rest.

    Thu, 07/19/2012 - 15:37 | Link to Comment vast-dom
    vast-dom's picture

    " Secondarily, let's not forget that we live in a free market economy and businesses are in the "business" of making profits." Are you fucking stupid? And then the next paragraph starts with Bernankzi! Yes you are fucking stupid! 

     

    And for corporations it IS working out just fine. I mean, who the fuck cares about the sheeple anyhow? The job of corp is to max out profits where MC=MR, right? But when ZIRP and bailouts and QE come into picture plus profits as function of subsidies like foodstamps etc. then what? 

     

    It's all fucked up!

    Thu, 07/19/2012 - 15:53 | Link to Comment ACP
    ACP's picture

    Yes, it is completely fucked up. It makes planning for the future extremely difficult.

    Look at the pattern in big stocks today - obvious computer control. The financial world is completely lawless. It's like the Wild West. I don't know why there's so much security around the stock exchanges & Wall St because they're fucking everything up faster and more efficiently than any terrorist could.

    Thu, 07/19/2012 - 15:37 | Link to Comment HaroldWang
    HaroldWang's picture

    It may not turn out to be like last year but it should. Actually it should be worse but it won't be with the election on tap. I've been saying the same thing to all the bizarre QE-hopers and those who think the fiscal cliff will get resolved. There will be no QE no matter how bad the data, if the market continues to stay at these levels. The Fed will not step in to a market that is near the high of the year. 

    Same with the fiscal cliff. If the market is up, as it is, there is no motivation for them to resolve anything. Why would they if everything looks great in stock market land??

    Thu, 07/19/2012 - 15:46 | Link to Comment vast-dom
    vast-dom's picture

    shift the chart back and it will look like yet another pattern. charts have become useless. 

    Thu, 07/19/2012 - 15:27 | Link to Comment Jason T
    Jason T's picture

    Aggregate demand will no doubt fall.. total Personal Income is in trouble .. shitty wages, less jobs created and personal current transfer receipts out of steam.

    Thu, 07/19/2012 - 15:28 | Link to Comment buzzsaw99
    buzzsaw99's picture

    They control all costs except their own pay which has gone the plaid.

    Thu, 07/19/2012 - 15:29 | Link to Comment Dumpster Fire
    Dumpster Fire's picture

    Secondarily, let's not forget that we live in a free market economy

     

    I soiled my armor.

    Thu, 07/19/2012 - 15:30 | Link to Comment williambanzai7
    williambanzai7's picture

    Real organic growth? Why bother. Fire everyone and just trade the shares. In our economy value creation is driven by financial rent and Ponzi innovation.

    Thu, 07/19/2012 - 15:31 | Link to Comment Bob
    Bob's picture

    Sure, why mess with a good thing?

    Thu, 07/19/2012 - 15:46 | Link to Comment EnglishMajor
    EnglishMajor's picture

    It's as organic as a honeybee, only the workers still in the hive are so numb from "running the playbook" for 1 or 2 other bees who are no longer there that they don't feel themselves taking it up the ass.

    Thu, 07/19/2012 - 19:37 | Link to Comment sethstorm
    sethstorm's picture

    Or one could take oneself out of the equation and just let computers duke it out with other computers.

    Thu, 07/19/2012 - 15:32 | Link to Comment azzhatter
    azzhatter's picture

    I'm a free market guy but there is something wrong in a world where the WalMart family is worth $86 Billion and the workers who produce the wealth live in double wides(if they are lucky). Just something wrong.

    Thu, 07/19/2012 - 15:37 | Link to Comment devo
    devo's picture

    No, it actually makes perfect sense. It seems wrong because you're used to seeing American's with a higher standard of living.

    Thu, 07/19/2012 - 15:59 | Link to Comment GoldRulesPaperDrools
    GoldRulesPaperDrools's picture

    Very true.  Of course, if WalMart were forced to buy products built here in the states instead of cheap garbage built in China and Indonesia and India and every other near-poverty third world country then they'd only have maybe 20-30 billion and you'd have American workers with more income, but the globalists don't want that.

    +1 for the name and the icon of Mark Mothersbaugh :)

    Thu, 07/19/2012 - 16:15 | Link to Comment devo
    devo's picture

    I have a hard time blaming Wal-Mart for hiring the cheapest labor since I manage my money in a similar manner. If a grocery store has cheaper bread, I buy from that store. If a bank gives a higher yield, I put my savings in that bank. If gas is cheaper at station x, I go there. So, for Walmart to go to China because their labor is cheaper makes perfect sense to me. It's hypocritical to say they're bad for doing it. If they hired Americans to make those products, we'd all be paying much higher prices. So on one hand people complain that Walmart is evil, but on the other, many of those same people shop there and enjoy the lower prices. I think there's a disconnect where the average American consumer doesn't fully understand why Walmart can/does offer low prices. If the argument is that it's bad for the Chinese workers...well, China's standard of living has been rising for 30 years now, and it looks to become an economic superpower as their currency rises over the next decade.

    Walmart/China labor force is pretty much Milton Friedman in action.

    Thu, 07/19/2012 - 16:20 | Link to Comment azzhatter
    azzhatter's picture

    It is hypocritical when you see the slave labor conditions they work under in China, Bangladesh, Sri Lanka etc. And the pollution they endure. I lived in China for years and I saw the hypocrisy first hand of american corporations

    Thu, 07/19/2012 - 16:28 | Link to Comment devo
    devo's picture

    Well, by purchasing the cheap labor we no longer need to manufacture those goods here. So over time, the American middle class will become the cheap labor and the loser in this game (i.e. we will be working in sweatshops owned by China). This is the "punishment" or revenge you seem to want for the indignation you feel.

    There is always going to be someone working in a sweatshop. Simple Bell Curve in action (1% on each side). In the past, there was more slavery, so it's actually a step up. Do I think it's great? No. Do I understand why it happens? Yes. Can I fault any parties? No--they all seem to be acting in their self-interests and voluntarily. Correct me if I'm wrong.

    Thu, 07/19/2012 - 16:33 | Link to Comment azzhatter
    azzhatter's picture

    No country has ever prospered by labor arbitrage over the long term.

    Thu, 07/19/2012 - 16:35 | Link to Comment devo
    devo's picture

    Right, I just said that--the U.S. middle class is going to pay (pun intended).

    Fri, 07/20/2012 - 05:57 | Link to Comment AnAnonymous
    AnAnonymous's picture

    So over time, the American middle class will become the cheap labor and the loser in this game

    ____________________

    It wont happen as long as the 'American' middle class keep living in 'American' countries.

    'American' countries have been accomodated to support certain standards of living. They can not be retrofitted at will to enable much lower standard of living.

    Activity can not be relocated in US citizen countries.

    Fri, 07/20/2012 - 13:22 | Link to Comment akak
    akak's picture

     

    Activity can not be relocated in US citizen countries.

    Logic, intelligence and the ability to self-indict can not be relocated in Chinese Citizenism trollbots.

    Thu, 07/19/2012 - 16:22 | Link to Comment azzhatter
    azzhatter's picture

    and your argument is precisely the argument white slave owners told the blacks from africa. At least you're not sleeping in a grass hut

    Thu, 07/19/2012 - 17:03 | Link to Comment devo
    devo's picture

    That's not my argument at all.

    On the internet, people have an idea in their head, and they'll read others' comments and (mis)interpret them in a way that allows them to expound upon those ideas and tee off, put words in others' mouth, etc. My argument is simply that it is natural to gravite toward the lowest price. Everyone does it. So when corporations do it, I understand.

    Thu, 07/19/2012 - 18:41 | Link to Comment GoldRulesPaperDrools
    GoldRulesPaperDrools's picture

    You're quite right, and in the corporate context of profits and maximizing returns I understand why they do it as well. 

    The problem is our country is bankrupt and has an increasingly shrinking pool of people off which to draw tax revenue because a) the Republicans push this `free trade/global economy` nonsense to help their coprorate purse-masters make more money, and b) the Democrats want more and more illegal, uneducated, impoverished people imported here to build their voter bloc and put more stress on the country's budget liabilities.  Both parties have helped drive the American middle class into poverty and given them a long-term outlook of despair.

    As a matter of national health, there should be laws and tax policies that protect Americans' collective earning potential as a labor force because, at the end of the day, our country's tax revenue suffers when wages suffer.  Unless, of course, you want to hear more of Barry Obongo's `you didn't build that` (so we're justified in taking your money) rhetoric and policies.

    Fri, 07/20/2012 - 05:59 | Link to Comment AnAnonymous
    AnAnonymous's picture

    My argument is simply that it is natural to gravite toward the lowest price. Everyone does it.

    _____________________

    It is so natural that before the introduction of US citizen economics, everyone did not do it.

    Fri, 07/20/2012 - 13:26 | Link to Comment akak
    akak's picture

    It is so natural for dogs to shit on the sides of the road that before the introduction of US citizen flush toilets, everyone but the Chinese did not do it.

    Thu, 07/19/2012 - 17:04 | Link to Comment Bob
    Bob's picture

    We seem to have this notion that if our de facto royalty have earned their wealth in the system known as free enterprise, that makes it right, end of story. 

    What seems to be missed in this is that actual royalty also once earned their wealth and position.  Ultimately developing nation states from primitive anarchy is what they did.  For better and for worse. But the claim that they were the state had some sense, especially by the standards of their time.  

    But at some point the differential per se becomes morally repugnant. Regardless of the nature of the claims of superior merit.  Doesn't matter if it's part "envy," either.  Royalty by any name offends a basic human sensibility that needs no justification.  It is what it is. 

    By the time the megawealthy drive the entire world into the ditch, you'd think they'd be relieved of their driving priviledges.  Who bought the car has nothing to do with it. 

    Thu, 07/19/2012 - 17:07 | Link to Comment CrockettAlmanac.com
    CrockettAlmanac.com's picture

     

    Ultimately developing nation states from primitive anarchy is what they did.  For better and for worse.

     

    For the worse, I'd say. The history of government is one long list of chicanery, outrage and war. You don't hear much about the days of "primitive anarchy" as you call them, probably because no one felt compelled to write, "Everything is going well and we have plenty to eat," in the history books.

    Thu, 07/19/2012 - 17:59 | Link to Comment Bob
    Bob's picture

    It was the psychopaths that naturally arose by force as "leaders" in anarchy! They were the freakin' Fore Fathers of the Nobility. 

    Sure, you can still see their crazy minds at work in the State.  The rest of us can see those same crazy minds at work outside the state just waiting to start the whole feudalism thing over again. And they seem to be building an army of useful idiots to help them get 'er done.

    Psychopaths are eternal/lol.

     

    Thu, 07/19/2012 - 18:10 | Link to Comment CrockettAlmanac.com
    CrockettAlmanac.com's picture

     

     

    It was the psychopaths that naturally arose by force as "leaders" in anarchy! They were the freakin' Fore Fathers of the Nobility.

     

    No system lasts forever. The tyrant rises and the tyrant falls and life goes on regardless. I imagine that even a good, solid libertarian society would devolve in a few generations. That doesn't mean that one should not always strive to live as freely as possible.  Life is a struggle but that's part of its charm and the effort is worth it.

    Thu, 07/19/2012 - 16:42 | Link to Comment Ying-Yang
    Ying-Yang's picture

    You are drinking the kool-aid. Globalism is not good for the average American in the long run. If your neighbors fall on hard times will you help them? If you lose your job will your neighbors help you?

    If not... why not?

    Thu, 07/19/2012 - 17:31 | Link to Comment devo
    devo's picture

    Guy, tell me how you get "Globalism is good for the average American" from this comment:

    Well, by purchasing the cheap labor we no longer need to manufacture those goods here. So over time, the American middle class will become the cheap labor and the loser in this game (i.e. we will be working in sweatshops owned by China). This is the "punishment" or revenge you seem to want for the indignation you feel.

    and this: Right, I just said that--the U.S. middle class is going to pay (pun intended).

    I'd like you to explain where I said it's good for the average American. Because I said we like cheap prices at Walmart? We do. For now. The bottom line is that corporations hire the cheapest labor they can, and anyone in their position would do the same, and average Americans behave the same (buying cheap products made in China rather than higher priced goods made in the USA). I'm not affiliated with any party or ideology. I'm just telling it like it is. Scarce resource allocation has a biological component; for that reason I definitely would not help strangers. The truth is apparently painful for some people. There is plenty of populist rhetoric out there if you want to feel better.

    Thu, 07/19/2012 - 17:34 | Link to Comment Freewheelin Franklin
    Freewheelin Franklin's picture

    Actually, I believe it was David Ricardo 100+ years earlier. It's called "comparative advantage".

    Thu, 07/19/2012 - 15:38 | Link to Comment mrdenis
    mrdenis's picture

    Some of my best friends are double -wide

    Thu, 07/19/2012 - 15:43 | Link to Comment Larry Dallas
    Larry Dallas's picture

    Azzhat:

    These toothless and homeless who live in double-wides could choose to work for the gov't if they wanted to. Then they would be getting a pension, free this and that. That's the real problem.

    Larry.

    Thu, 07/19/2012 - 15:55 | Link to Comment azzhatter
    azzhatter's picture

    I understand that and maybe the average Walmart worker is a poor example but the fact is the wealthier don't just keep getting wealthier, their wealth is exploding and a lot is at the expense of the formerly middle class. I know life ain't fair but right now it's so in your face, it's pathetic. I made over $300K a year before I bailed out so I'm not some oppressed minimum wage worker. I just see the divide in our society

    Thu, 07/19/2012 - 18:45 | Link to Comment GoldRulesPaperDrools
    GoldRulesPaperDrools's picture

    That is partly true, but part is also the case that global population has exploded in the last fifty years.  That said, if you make a widget or provide a service now there are billions more people from whom you can cultivate more customers (the ones who have the money or credit to buy it, at least).  Population growth isn't mentioned in a lot of these discussions, but since wealth tends to perpetuate through families a family that controlled a business that sold to x million people twenty years ago and is now selling to 2x or 3x million people now is making a WHOLE lot more money than they did before.

    Thu, 07/19/2012 - 16:00 | Link to Comment LFMayor
    LFMayor's picture

    homeless who live in double-wides.

    Thu, 07/19/2012 - 17:00 | Link to Comment graneros
    graneros's picture

    +1 for the good catch!

    Thu, 07/19/2012 - 19:13 | Link to Comment itstippy
    itstippy's picture

    Homeless, toothless double-wide dwellers who can place in the top 10 out of hundreds of applicants for a government job opening, and then nail the interview & get hired. 

    Thu, 07/19/2012 - 15:47 | Link to Comment Peter Pan
    Peter Pan's picture

    Where profits are achieved at the expense of workers it is the equivalent of feasting on ones children when hungry. Great as a short term solution but not so good for the long haul. Eventually the strategy leads to ruin.

    Thu, 07/19/2012 - 17:10 | Link to Comment CrockettAlmanac.com
    CrockettAlmanac.com's picture

    Then there is a niche for entrepreneurs who seek long term success by nurturing their workforce. Think Henry Ford. The man paid five dollars a day. That was a quarter ounce of gold at the time.

    Fri, 07/20/2012 - 05:49 | Link to Comment AnAnonymous
    AnAnonymous's picture

    There is a niche for nobody.

    US citizens aim at the depletion of resources.

    The necessity of turning a worker into the consumption of his own goods comes from US citizen economics (free market economics)

    It also comes with the possibility of turning off the worker's consumption of his own goods.

    In US citizen economics creed, more consumption only begets even more consumption. No level of economical activity can deplete an environment,as US citizens can overcome the environment.

    Complete fantasy.

    In the end, more consumption does not beget even more consumption but prepare the future for less consumption.

    Workers have to be cut off their own production. No niche at all.

    Fri, 07/20/2012 - 13:19 | Link to Comment akak
    akak's picture

     

    In US citizen economics creed, more consumption only begets even more consumption. No level of economical activity can deplete an environment,as US citizens can overcome the environment.

    Please tell us, trollbot, just how many hundreds of thousands of hectares of forests have been lost under Chinese Communist (central-planning) rule, or how many hundreds of thousands of hectares of productive farmland lost to urbanization and sprawl, or how many hundreds of square kilometers have been toxified and destroyed in the mad centrally-planned frenzy to extract every milligram of rare earth elements and gold from Chinese soil?

    Hypocrisy, thy name is Chinese Citizenism!

    Thu, 07/19/2012 - 15:56 | Link to Comment LawsofPhysics
    LawsofPhysics's picture

    Free Markets?!?!?!?  LMFAO!!!!  Free markets would imply real consequences for bad behavior AT ALL LEVELS.  Does a poorly managed company that adds no real value and losses billions fail (like AIG) and do the owners pay off the creditors with their own private wealth?  NOooooo, they get a fucking bailout from the taxpayer. Free markets, too fucking funny. 

    Thu, 07/19/2012 - 17:10 | Link to Comment graneros
    graneros's picture

    As usual LoP you are dead on. +1

    Thu, 07/19/2012 - 17:23 | Link to Comment American Sucker
    American Sucker's picture

    Chinese labor market is heavily oppressive and unfair.  It's not slavery, but it's not much better.

    The interstates are built and maintained by the state.  Trucks underpay for roads, considering the considerable damage they cause.

    Wal-Mart gets a shitload of sweetheart deals on land regulation and property taxes at the local level.

    Your instincts are good.  Wal-Mart is not the product of a free market.

    Thu, 07/19/2012 - 19:35 | Link to Comment sethstorm
    sethstorm's picture

    They are the product of an incestuous relationship between the PRC and a few members of the Walton family.

    In any other age they would have considered Communists.

    Thu, 07/19/2012 - 15:35 | Link to Comment devo
    devo's picture

    Have to let housing fail.

    End of story.

    Thu, 07/19/2012 - 16:15 | Link to Comment Mudduckk
    Mudduckk's picture

    Housing fail. Muni Fail. States Fail. Amen. The events are a defacto wealth tax as all the underlying securitizations come up impaired.

    It's a big club, the Wealthy, and I an't in it! Walton's, Buffetts, et. al.  along with the NPV of all classes connected to some sort of social contract; SSDI, pensions etc.

    It ain't me.  It ain't me.  I ain't no Fortunate Son.

    What the fuck are we waiting for?

    Liquidate already.

    I'm young, I'm tanned, I'm rested. I want a piece of some cheap shite to begin making my way, but all these fucking zombies stand in the way of progress.

     

    Thu, 07/19/2012 - 17:22 | Link to Comment devo
    devo's picture

    Yeah, I could buy a house or two in cash if they marked to market. But, now they're just going after my savings, so I'm moving into gold and alternative investments. That's two houses that could have been sold that aren't. Meanwhile, deadbeats likely sit in those homes, food prices rise, gas rises, etc, because we have to maintain the illusion that wealth isn't collapsing (so Obama can be reelected). Pathetic monetary policy has more to do with the eroding middle class than corporations.

    Thu, 07/19/2012 - 17:39 | Link to Comment Freewheelin Franklin
    Freewheelin Franklin's picture

    Let 'em all "fail". The Austrians "predicted" the crash. Too much cheap cheap, easy money/credit leads to malinvestments. The only solution is to fully "flush out" all of the malinvestments. But no one wants to do that. It's too "Draconian". I call bullshit. That's the way Capitalism is supposed to work, and the only way the economy and trade will begin to recover.

    Thu, 07/19/2012 - 15:35 | Link to Comment surf0766
    surf0766's picture

    Food stamps will save us.

    Thu, 07/19/2012 - 15:41 | Link to Comment devo
    devo's picture

    They saved Margie. Have you seen her lately? She looks great.

    Thu, 07/19/2012 - 15:44 | Link to Comment reader2010
    reader2010's picture

    It pays to be the owners and sucks to be the employed in this arrangement for sure. George Tooker, one of my favorite american realism painters, realised it back in 1964.

    titled Lunch,

     

    http://artandsocialissues.cmaohio.org/web-content/images/Tooker_Lunch_pg...

    Thu, 07/19/2012 - 17:17 | Link to Comment CrockettAlmanac.com
    CrockettAlmanac.com's picture

     

     

    It pays to be the owners and sucks to be the employed in this arrangement for sure.

     

    Then why does anyone chose to work for another? If the position of business owner is an easily achievable and lucrative position then why doesn't everyone just work for themselves? Could it be that your premise is incorrect and that there are numerous burdens placed on the shoulders of business owners that go unseen by the workers? Or are regular folks too intimidate by government regulation and taxation to even think about starting their own business?

    Thu, 07/19/2012 - 19:33 | Link to Comment sethstorm
    sethstorm's picture

    Job security is a lot more pronounced, and long term planning can be done when you're free of the worries related to owning a business.

    Not everyone wants to be a whore, which is about what a business owner/consultant/etc. is. 

    Thu, 07/19/2012 - 21:16 | Link to Comment CrockettAlmanac.com
    CrockettAlmanac.com's picture

     

     

    Not everyone wants to be a whore, which is about what a business owner/consultant/etc. is.

     

    The individual who pays others is a whore? How's that work?

    Fri, 07/20/2012 - 05:32 | Link to Comment Unique Snowflake
    Unique Snowflake's picture

    Everyone's a whore. Workers whore to business. Business whores to suppliers. Suppliers whore to manufacturers. They whore to raw material suppliers who whore to miners who whore to governments for the right to dig. Government whores to banking.

    Fri, 07/20/2012 - 05:44 | Link to Comment AnAnonymous
    AnAnonymous's picture

    US citizen societes are market by two prevailing social interactions:

    -seduction

    -persuasion

    Forget about other social interactions.

    Whoring is one side of the coin. The other side is pushing.

    Whores and pushers, this is what human beings are reduced to satisfy their economical needs thanks to US citizenism.

    Fri, 07/20/2012 - 13:11 | Link to Comment akak
    akak's picture

    Chinese citizen societes are market by two prevailing social interactions:

    -offuscation

    -roadside defecation

    Forget about other social interactions.

    Pushing blame to the exterior is one side of the coin. The other side is pushing out turds on the sides of the roads.

    Offuscators and roadside shitters, this is what human beings are reduced to satisfy their political and bodily needs thanks to Chinese Citizenism.

    Thu, 07/19/2012 - 15:43 | Link to Comment Mr Lennon Hendrix
    Mr Lennon Hendrix's picture

    The whole point of everything that has happened for the last few hundred years is to usher in the Rise of the Corporations.  The Civil War, corporate personhood, 401ks, the destruction of the dollar, the MIC, everything - everything has been done to take power from the individual and give it to the corporations.

    Thu, 07/19/2012 - 15:52 | Link to Comment LawsofPhysics
    LawsofPhysics's picture

    Correct.  Consolidation of power and control.  The only good news is limited liability for all, I mean people are corporations too, right?

    Thu, 07/19/2012 - 15:44 | Link to Comment devo
    devo's picture

    The market is excited about Google's earnings. A ton of insider selling this quarter...curious to see how this report pans out.

    Thu, 07/19/2012 - 15:48 | Link to Comment mrdenis
    mrdenis's picture

    Insider selling because they get such cheap options ......only the little people pay taxes 

    Thu, 07/19/2012 - 16:03 | Link to Comment devo
    devo's picture

    We'll see. Google's become a black box so it's impossible to predict. They're the Enron of tech.

    Update: jumping up after hours. Guess they beat?

    Thu, 07/19/2012 - 17:19 | Link to Comment graneros
    graneros's picture

    "Google's become a black box"  Great analogy and oh so true.  But  I fear every apsect of our lives gets the Google treatment now a days.  Even here at ZH you can rest assured every statement we make goes into our NSA files under our REAL names.  Before anybody gets pissy I'm not saying one of the Tyler's does this just that the NSA monitors every single thing out there.

    Thu, 07/19/2012 - 17:25 | Link to Comment devo
    devo's picture

    Get Ghostery and Better Privacy for Firefox. They block Flash cookies and 99.99% of crap. I haven't seen a Google or FB ad in over a year. Don't use Chrome.

    I realize they can still link IP and username, but still, do what you can to avoid these creeps.

    ZH, how about some proxy servers?

    Thu, 07/19/2012 - 17:34 | Link to Comment graneros
    graneros's picture

    Thank you for that Devo.  I will check them out right now.

    Thu, 07/19/2012 - 15:49 | Link to Comment monopoly
    monopoly's picture

    Would someone please advise me where MDB gets his stash. That is good stuff he is smoking.

    Tyler, I will triple my donations if you give us an ignore button.....Pleaseeeeeeeee!!!!!

    Thu, 07/19/2012 - 15:54 | Link to Comment Flakmeister
    Flakmeister's picture

    So you stick your head in the sand when you hear something you don't like???

    You could argue that doing just what you said is large part of what went wrong in this country....

    That being said, one could safely ignore what you have posted here over your tenure and be none the worse for it...

    Thu, 07/19/2012 - 21:03 | Link to Comment Bohm Squad
    Bohm Squad's picture

    How does this get a downvote?  

    Guess confimation is comfortable?

    Thu, 07/19/2012 - 17:05 | Link to Comment CCanuck
    CCanuck's picture

    +1  I would make my first.

    I do my part now buy click'n your ads, especially the snoorg tee's.

    I would be highly motivated to donate if came with an ignore button!

     

    Thu, 07/19/2012 - 17:49 | Link to Comment graneros
    graneros's picture

    I would be highly motivated to click on the Snorg Tee's Meh girl's button.  No really all I ever look at are the sunglasses.  No camel toe for me.  No sir. Well maybe The Old Geezer's avatar...

    Thu, 07/19/2012 - 15:50 | Link to Comment no life
    no life's picture

    We're about to reach the end of our collective spiderman towel..

    Thu, 07/19/2012 - 15:50 | Link to Comment monopoly
    monopoly's picture

    And AAPL just keeps on ticking. Amazing! 

    Thu, 07/19/2012 - 15:52 | Link to Comment devo
    devo's picture

    It's likely going much much higher by December.

    Thu, 07/19/2012 - 15:52 | Link to Comment PulpCutter
    PulpCutter's picture

    It's none of our business how much an employer pays himself or herself, or how little they pay their employees.  Every employer gets to decide for himself how, based on his value system, how generous to be.  If an employee doesn't like it, his choices are 1) quit and start your own business - and more power to them - or 2) STFU. 

    Businessmen who get ahead by corruption and buying influence (read: WallSt investment banks, defense contractors, etc.) should be in jail, not pulling down big salaries.  But as long as they play the game clean, IMO America has no business legislating compensation limits.

    Thu, 07/19/2012 - 15:57 | Link to Comment azzhatter
    azzhatter's picture

    Pulp-I don't disagree  but moral men would not choose to be pigs either

    Thu, 07/19/2012 - 16:04 | Link to Comment PulpCutter
    PulpCutter's picture

    Strongly agree - but it's up the employer's value system, not the voter's.

    Thu, 07/19/2012 - 16:21 | Link to Comment Bob Sacamano
    Bob Sacamano's picture

    Agreed.  You gotta love people who are not owners or employees of a company telling the company how much profit is appropriate and how much employees should be paid.   Good to know there are so many folks who know better than those who are actually running a business (despite the fact they have never and will never run a business).  Sounds a lot like our friend BHO -- he definitely knows what's best for everyone.

    Thu, 07/19/2012 - 16:26 | Link to Comment azzhatter
    azzhatter's picture

    Hopefully you're not talking about me as I suspect I have run much bigger companies than most here have. And I always fought for my employees to get bigger raises and better conditions because I learned long ago that happy workers are much more productive. Workers who have less personal problems are much more productive. It ain't rocket science

    Thu, 07/19/2012 - 16:43 | Link to Comment MachoMan
    MachoMan's picture

    actually, workers who are whipped are the most productive...  but not necessarily the most profitable for the business, all things considered.

    Thu, 07/19/2012 - 19:31 | Link to Comment sethstorm
    sethstorm's picture

    Except that IBM disproved that ages ago.

    Fri, 07/20/2012 - 10:13 | Link to Comment MachoMan
    MachoMan's picture

    No...  the demanding/controlling boss that holds a gun to your head gets you to do more work...  now, this isn't universal because types of work aren't all the same...  but for grunt/dumb dumb work, it's the model that yields the most production over a short period of time.  Now, the flip side is that this yields burnout, apathy, turnover, and even retaliation in some cases.  Employee turnover leads to other inefficiencies...  although, again, with grunt work, not much training, if any is needed...  just depends on what work you're talking about.  Also, some personality types simply can't function under the pressure...  so the approach has to be specifically tailored to each worker...  but, we're speaking generalities here.

    The work place of the future is like a buffet of perks...  gym, spa, daycare, cafe, etc.  The logic being that if you can keep people at work and subconsciously control large aspects of their social lives, you can get more production out of them because they volunteer!  They make work their life because so much is provided by the employer...  Again, it's dependent upon personality types, among other things, but it seems to work for quite a few employers already.

    However, for "burst" production, there is no better alternative than the whip...

    Fri, 07/20/2012 - 20:17 | Link to Comment Bob Sacamano
    Bob Sacamano's picture

    AH -- agree with your principle and practive similarly.    Just saying those who are not owners nor employees of a particular company should not tell that particular company how it should be run.  If you are not party to a transaction, stay out of it.   Unless everything is supposed to be socialized -- which many (not me) believe (i.e. government should control (or strongly "influence") many aspects of life). 

    Thu, 07/19/2012 - 16:39 | Link to Comment MachoMan
    MachoMan's picture

    Actually, when labor is ignored and not given a seat at the table, runaway corporate profits (often times producing nothing of substance btw) are inevitable.  Please watch this Charlie Rose interview with James Goldsmith on the subject...  what he said nearly 20 years ago has literally all come to pass...  http://video.google.com/videoplay?docid=5064665078176641728

    The battle between capital and labor has to be on a level playing field...  it typically isn't...  which causes instability in the system and ultimately crashes it...  but I digress.

    You can't simply will away real world issues with the whisk of an academic hand...

    Fri, 07/20/2012 - 20:26 | Link to Comment Bob Sacamano
    Bob Sacamano's picture

    Seems you are talking about the extremes with no real definition of "ignored" nor "runaway" and "substance" and "level playing field."   Who gets to decide what these mean?  Government?  Oh Lord. 

    Companies, capital markets, workers will have small and big crashes.  Pain free existence is unachievable and the pursuit of such only makes things worse. 

    Thu, 07/19/2012 - 15:52 | Link to Comment geewhiz190
    geewhiz190's picture

    yet another widening divergence to add to the list

    Thu, 07/19/2012 - 15:54 | Link to Comment John Law Lives
    John Law Lives's picture

    So much for corporate loyalty towards the employees.

    Meanwhile, Obumble is doing his part to expand the rolls of SNAP to include more Mexican migrant workers etc...

    USDA partnering with Mexico to boost food stamp participation
    Published: 1:07 AM 07/19/2012

    http://dailycaller.com/2012/07/19/usda-partnering-with-mexico-to-boost-f...

    100% FUBAR.

     

    Thu, 07/19/2012 - 15:55 | Link to Comment Hype Alert
    Hype Alert's picture

    Funny, I was just reading about Government Motors building new Chevrolet Trax crossover in Mexico.  Yet they ramble on about outsourcing.

    Thu, 07/19/2012 - 19:43 | Link to Comment sethstorm
    sethstorm's picture

    That's one less car I'm going to buy.  I don't want a narcostate car that comes with "aftermarket accessories" that consist of powdered white blocks.

     

    Thu, 07/19/2012 - 15:57 | Link to Comment Lucius Corneliu...
    Lucius Cornelius Sulla's picture

    To solve the problem you need to create incentives for corporations that sell their wares in our market to source their production here.  China, India and many other countries have implicit and explicit policies that limit foreign ownership of businesses and mandate production to be sourced there.  We need to do the same here as long as our jobs are being taken by unfair competition fostered by government mandates.  The first step is to leave the WTO.  Then, if Apple, Dell, Craftsman or Schwinn wants to sell their wares in the US market then produce them here or face stiff import duties.  Before the income tax, the Federal government derived most of its income from tariffs.  The obscene deficits need to be paid down and this may be a good way to do it.  Japanese and German auto makers have already sourced a lot of their production here.  Good for them.  Its time to even out trade imbalances with policies that promote more of the same.

    Thu, 07/19/2012 - 16:02 | Link to Comment Mudduckk
    Mudduckk's picture

    Chinese wages are up 20% year-over-year, meanwhile were still ceeding jobs overseas.  The real cost of labor coupled with cheap transport and lax regs can do much to explain this.  None-the-less, growth occurs at the margin, the margin being over there.  Fact of the matter: wages here for simple undifferentiated work are still too high to be competitive.

    IMO devauluation will not help, because of lax regulatory.  We theoretically can achieve purchasing parity in wages, but if regulatory transactions costs are still higher here than there, workers here will still be feeling the pressure. A political correct tax we all bear.

    This sucks for the developed world worker, but is bullish for the developing world worker.

    What I find curious is how entitled people feel to have a job and to have pay that gets them the things they want.  How these voices echo stronly from the left. A voice for human rights.

    Does not the Chinaman who lives on a dirt floor not have a human right to work? Just as much as a US worker?  If the pay he makes imporves his condition in life, is not the whole of humanity improved?

    Coming from Toledo Ohio here. How many times I shared class time (HS mind you) with some unmotivated loser who mouthed off to the teacher as to why he/she has to learn algebra when as soon as they graduate, they are going off to Jeep US Assembly, or GM Hydramatic to make more than the teacher.

    Sweet irony it seems as the chickens are now coming home to roost.

    So I wonder when does the simple undifferntiated worker like my classroom fellow come to adjust his expectations in what life has to offer for such menial work, such that he suggests to his or her children, "Pay the fuck attention in school!"?

    Thu, 07/19/2012 - 17:56 | Link to Comment Mad Cow
    Mad Cow's picture

    "Sweet irony it seems as the chickens are now coming home to roost."

    As the motivated winners create robots to replace us all. Hope your expectations are low as well.

    Thu, 07/19/2012 - 19:29 | Link to Comment sethstorm
    sethstorm's picture

    This sucks for the developed world worker, but is bullish for the developing world worker.

    Only until the developed world worker starts doing something about it and makes it living hell for businesses to use developing world workers.

     

    What I find curious is how entitled people feel to have a job and to have pay that gets them the things they want.  How these voices echo stronly from the left. A voice for human rights.

    Yet the Chinaman makes things worse off through their worse conditions being validated.

     

    Does not the Chinaman who lives on a dirt floor not have a human right to work? Just as much as a US worker?  If the pay he makes imporves his condition in life, is not the whole of humanity improved?

    Not if the US worker is harmed - which applies to all questions.  You find a way to help both without resorting to snark, no exceptions.

     

    So I wonder when does the simple undifferntiated worker like my classroom fellow come to adjust his expectations in what life has to offer for such menial work, such that he suggests to his or her children, "Pay the fuck attention in school!"?

    Or perhaps that he should pay attention to the people he votes for in office - so that he retains a First World wage for work regardless of education.  You're just green with envy that you didnt get to have one of those jobs.

     

    Third World apologists like you are lucky that McCarthy isn't alive and around to put you in your place.

    Thu, 07/19/2012 - 16:02 | Link to Comment Mrmojorisin515
    Mrmojorisin515's picture

    I always assumed that if the banks collasped, many of them would have called in the loans they make to their equally corrupt large biz counter parts, many would have been forced to shrink or shutter.  I had a vision of small biz resurgance and smiled.  Then the bailouts happened

    Thu, 07/19/2012 - 17:09 | Link to Comment Bobportlandor
    Bobportlandor's picture

    I too thought of this yesterday "small biz resurgence" I believe it's coming through those cheaper wages forming a new businesses and competing.

    Just a thought, everyone is looking for inflation to come, but maybe the inflation has already occurred over the last 20 years.

    Meaning from a first person point of view losing a job is inflation cause to you items once affordable now are not, instantaneous inflation.

    From a third person's point of view labor is cheaper and they see deflation.

    So the cheap labor will eventually win out and the higher paying jobs will be at risk. And the debt, it will be born by the investors as losses as cheap labor with no burden eats their lunch.

    All the money floating around, QE, disappears with the debt blowup.

    Just a thought

    Thu, 07/19/2012 - 16:04 | Link to Comment q99x2
    q99x2's picture

    We are at the sixth stage of human development: Population Reduction.

    Thu, 07/19/2012 - 16:25 | Link to Comment Rainman
    Rainman's picture

    bout time somebody came up with a vaccine against this virus

    Thu, 07/19/2012 - 16:11 | Link to Comment piceridu
    piceridu's picture

    How simple is it? You cannot have infinite growth in a finite environment. We live within a ponzi economic structure that was set up to keep politicians in power and the populace in chains through growing debt. Either we take care of this now or nature takes care of it for us later. 

    Thu, 07/19/2012 - 16:16 | Link to Comment Bob Sacamano
    Bob Sacamano's picture

    So the solution is higher wages and lower corporate profits -- entirely consistent with BHO's plan -- spread the wealth by edict.

    Thu, 07/19/2012 - 16:51 | Link to Comment Dermasolarapate...
    Dermasolarapaterraphatrima's picture
    10 Worst States to Live in During Retirement

    1. Louisiana

    Crime rate: 4,196.5 per 100,000

    2. Georgia

    Crime rate: 4,043.8 per 100,000

    3. New Mexico

    Crime rate: 4,024.3 per 100,000

    4. Texas

    Crime rate: 4,233.3 per 100,000

    5. Arkansas

    Crime rate: 4,064.2 per 100,000

    6. Tennessee

    Crime rate: 4,271.2 per 100,000

    7. South Carolina

    Crime rate: 4,498.1 per 100,000

    8. Mississippi

    Crime rate: 3,254.7 per 100,000

    9. Alabama

    Crime rate: 3,894.6 per 100,000

    10. Kentucky

    Crime rate: 2,793.9 per 100,000

    full story:

    http://finance.yahoo.com/news/10-worst-states-to-live-in-during-retireme...

    Let me add, I thing the worst state to live in during retirment is the State of Poverty.

    Thu, 07/19/2012 - 17:56 | Link to Comment Rainman
    Rainman's picture

    any place above ground works for me long as they have Prop 13

    Thu, 07/19/2012 - 18:28 | Link to Comment Bobbyrib
    Bobbyrib's picture

    Wow, Yahoo comprised their list by crime statistics!? I'm from NJ and I know it we should be at least top 5. In fact, I'm a little insulted. What does a bankrupt, corrupt shithole have to do to make that list?

    Thu, 07/19/2012 - 19:19 | Link to Comment sethstorm
    sethstorm's picture

    Interesting that those are all Southern states save for New Mexico. 

    Thu, 07/19/2012 - 17:08 | Link to Comment MedicalQuack
    MedicalQuack's picture

    It's the business intelligence algorithms again shifting money around, time to clean up the formulas and the math and lawmaker to come out of denial.  I wrote a post a few days ago now on how we seem to be creating health insurers too that are too big to fail, see this war with United smashing Blue Cross technologies with Health IT contracts and see what Tri-Care is doing.  The one subsidiary of Blue Cross due to loss of contract said they will more than likely close and then United has some choices to perhaps pick up and build upon.  They already gave one contract to another BC subsidiary and decisions and contracs as such move money and keep earning unfortunately low.  In a couple states with bidding on contrats, Blue Cross is throwing in the towel.

    http://ducknetweb.blogspot.com/2012/07/tri-west-wont-challenge-tri-care....

    This is why I wrote my series called the Attack of the Killer Algorithms as you can't see them, touch them or find customer service half the time that understands them either and then we hear in the media about the fact that we may all be "mentally ill", don't think so it's just this war of the business intelligence algoirthms coupled with flawed and spun data that's doing it, we are fine but know something is not cooking right today:)

    Now here's a mentally ill person, a broker with USB who's running around with sling shots breaking windows in Beverly Hills.  What kind of investment advice do you think he has?  He probably knows more about windows than brokering at this point and since being arrested he has time to think about it, but those same algos we deal with came back to bite the other side and in his case it must have been asymptomatic stress:)  Wonder what other brokers do to releive stress these days:)

    http://ducknetweb.blogspot.com/2012/07/stress-on-job-usb-broker-takes-it...

    Thu, 07/19/2012 - 17:41 | Link to Comment Freewheelin Franklin
    Freewheelin Franklin's picture

    The bottom line is *uncertainty*.

    To control-p, or not to control-p? That is the question.

    Thu, 07/19/2012 - 18:28 | Link to Comment Shizzmoney
    Shizzmoney's picture

    Wait, so corporations, via their government whores, use the state welfare system (food stamps, medicaid, etc) to increase their profit?

    You gotta be fuckin' kiddin' me!

    Now, as much as it is the abuser corporate states' fault......the peole are to blame, too.  We believed the bullshit Clinton, Reagan, Obama, and Bush told us.  "Go into debt; you're wages will rise and you'll be able to enjoy the good life on cheap money." Globalization pushes this along further; creating a race to debase corporate tax breaks to create "good business environments."

    People are a bunch of suckers, me included.  The youth (18-35) really bought into this when we took on all this college debt, thinking it would results in higher returns.  A +EV investment, if you will.  Obvious, the only thing we got now are shafts of the corporate cocks up our collective assholes.

    People, unlike CEOs and banks, actually are responsible, and try to pay down their debts they accrue.  They are abused by a system who continiously holds a carrot over their head.  "Bail us out, or I'll kill the bunny."  Happened during TARP, happening here.

    What people need to do, is start finding ways away from debt.  Either get into the life black (I am SO fucking close; will be by end of year), or boycott the shit.  We need to, en masse, stop paying our credit cards, challenge our government leaders to cut worker's taxes and stop the pillaging of corporates taking advantage of government corporate welfare in the form of tax breaks.  Or just walk off the fucking job. And then protest the Federal Reserve building, who has sacrificed our curreny in the name of higher stock prices for their Wall St and Corporate buddies.

    I doubt this will happen until a bad event occurs.  And I think it will.  Corporations are gonna get theirs.  Karma IS a motherfucker.

     

    Thu, 07/19/2012 - 19:18 | Link to Comment sethstorm
    sethstorm's picture

    While it is enticing to want to force corporations to deploy the cash and create jobs - the unfortunate situation is that it is the very demands to maintain profitability that keeps them on the defensive.  Secondarily, let's not forget that we live in a free market economy and businesses are in the "business" of making profits.

    Yet that is the very thing that must be done, in tandem with forced asset repatriation.  All other alternatives have been tried with no success.

    It isn't a pleasant thing to do, but businesses can blame themselves for doing everything to avoid ill-timed prosperity.  If strikes of labor can be broken, the same with strikes of capital.

    Fri, 07/20/2012 - 00:35 | Link to Comment MarcusLCrassus
    MarcusLCrassus's picture

    But the 1% are Job Creators.  The author is a communists if he want workers to be paid more. 

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