The disconnect

Discussion in 'Economics' started by nitro, Apr 4, 2010.

Is the disconnect between the an American citizen and Corporations a bad thing?

  1. Yes. This will eventually lead to more disparity between those that have and those that dont.

    9 vote(s)
    56.3%
  2. No. This is normal progression of late Capitalism

    1 vote(s)
    6.3%
  3. I don't know.

    3 vote(s)
    18.8%
  4. I don't care.

    3 vote(s)
    18.8%
  1. nitro

    nitro

    Are there too many of these stores, or is it that the consumer is simply broke with no hope of defeating the death spiral?

    "Announcements continue to roll in from retailers that have decided to close stores, slow expansion plans or cease operations altogether."

    http://www.walletpop.com/article/retail-stores-closing-doors/968054

    Either way, earnings and stock prices for US corporations continue higher. There is a massive disconnect between the fortunes of most companies and the individuals living in that same country. Why aren't people up in arms is my question.

    I don't know what professional economists say, but this disconnect seems extremely dangerous at best.
     
  2. Redneck

    Redneck

    IMO (because obviously I am no economic expert)


    This is only the tip of the iceberg

    We are a consumption based economy – apparently we’ll need to consume ourselves into oblivion to get the message

    We have no manufacturing to speak of – so in order to get back on track we’ll need a significant flushing of the system – then obviously (and hopefully) a retooling of the system


    In the meantime the government continues do its damndest to support this bubble – unfortunately all bubbles burst – I fear so to shall this one

    From memory there has only been one way we’ve pulled our selves out each time – not saying it is certain this time – but I know of no other way to create the magnitude of manufacturing necessary



    I fear for my kids – I fear for my country

    RN
     
  3. This is not a one size fits all thought but, Imo,with easy credit, I do believe the margins were greater on the credit side than selling merchandise hence more stores than necessary.

    Secondly, I think certain retailers opened new stores to take advantage of real estate appreciation by opening stand alone stores rather than going the mall route.

    Both of these have contracted, store closings would seem prudent.
     

  4. Your childrens future has already been stolen. The democrats believe that they are stealing from the rich and giving to the poor and middle class. Yet at the same time they are giving bailouts to large corporations. So who are they really stealing from? They are stealing from their own children and there is nothing lower than a man who steals from his own kids so that he can get what he wants NOW. Actually...there is something lower...a man who steals from his own kids and MY kids! My wife just had a baby 6 months ago and his share of the deficit increased by almost $7k just since he was born. Basically it cost my son over $1,000 per month to have Obama in office. How the hell is he going to pay that off?
     
  5. achilles28

    achilles28

    There's no disconnect between stock prices/earnings and US employment/eroding living standards.

    US companies are really multinational companies that operate in, and sell to, global markets.

    As the US consumer/economy goes down, third world markets are buoyed by the transfer of American jobs to Chindia. Fortune 100 actively cater to the growing middle class in former third world Countries, even as the US consumer tanks. For multinationals, the pie never shrank. It just got smaller in America and bigger in China/India/Brazil/Russia/Mexico etc.
     
  6. olias

    olias

    Interesting point
     
  7. Redneck

    Redneck


    Congratulations to you and your wife Sir :)


    Can’t disagree with anything you’ve posted – I would only add I have a hard time differentiating one party from the other these days (and for awhile now) – unfortunately


    In response to your question – I don’t know :(

    RN
     
  8. schizo

    schizo

    Spot on. Unfortunately we're too damn old to serve our damned country.
     
  9. schizo

    schizo

    For the record, I am a registered die-hard democrat. But as RN already noted, there's no friggin' difference between the two parties. They can bitch all they want about their respective ideologies, which sound nice in theory, but they're both enslaved to the rich and the powerful.

    When the masses rise up in revolt, it won't be because they're either democrats or republicans. You're damn right, they'll rise up as Americans!