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PBS's Nightly Business Report details why corporations are holding onto their money, the uncertainty about the future causing them to be cautious. Ironically they were hammered over the years for being overly speculative with their money, causing the present economic malaise.
Now that they are being cautious and their actions are impacting employment - many of the same people who had been attacking them for being reckless are again attacking them for holding onto their money.
The NAACP believe that they are going to create jobs via marching and protests. I realize that I am supposed to make a reverential reference to Martin Luther King's action in 1963 and believe it to be an effective strategy.
The truth is that a job is created in the context of the execution of a process by which labor is used to deliver a product or service that someone else is ultimately willing to pay for. Those who seek to create a job for the sake of employment........holding onto some notion of "PAY JUSTICE" in the process, merely create market imbalances that will one day have to be addressed.
We should note that the NAACP is not going to protest AGAINST the politicians that are in power. These are their permanent friends. If they do in Washington DC in October what they did in conjunction with the union as they gathered on Wall Street - they will be attacking corporations and banks, asking them to WORK WITH OBAMA.
I have told you before that these entities that still refer to themselves as "Black Civil Rights Organizations" have been compromised a long time ago. They now are little more than "Progressive Ideologues", concerned more about defending their IDEOLOGY rather than making note of the shortfalls in Black America and holding the forces that are in control over the Black community accountable.
The problem is that in Detroit, for example - the permanent friends of the NAACP are in power. The same operatives that see the reelection of their friends in November are not going to do anything to derail these efforts in October.
This is why they have to attack the corporations.
Economic Analysis - TheRoot.com Style
I credit the various operatives in the Black Press for working so hard to propagate their ideological rationalizations, realizing that most of their audience does not listen to the financial press.
TheRoot.com - Nsenga Burton- Corporate Profits At Record High
Please note how TheRoot.com makes this ALL ABOUT OBAMA (and tacitly about racism)
Notice how PERCENTAGE GROWTH is keyed upon even as the author of the article below shows absolute shrinkage of the dollar amount. It does not stand to reason to reference the present profits to that of a period of great economic turmoil in the past and then show faux outrage over a 39% increase.....from a time of near depression.
When it comes to addressing the Obama Administration and Progressive-Fundamentalists' "Boot On Their Necks" disposition and how it impacts the will of a company to make long term capital investments - the anti-capitalists seem unable to make the correlation. They can't see that the manufacturers in the Rust Belt were forced to yield to the unions during the years when their production plants had not fully depreciated. However as the plants reach end of life the decision must be made:
- Retrofit the exiting plant in a the hostile environment
- Construct a new plant in the South where the terms are more favorable
When this decision is made - the labor left never is able to see that what they label as "working for the best interests of the workers" has failed because now many of these "workers" are "people hoping to be workers again one day"
Corporate profits aren't just rising in absolute terms -- they're rising in relative terms. Corporate profits as a percentage of GDP are back up to nearly record highs. The quarterly GDP report released by the U.S. Commerce Department provided detailed data on corporate profits, which stood at $1.5 trillion in 2007, falling sharply to $1.26 trillion and essentially stagnating in 2009. But since the Obama presidency started, the trajectory in quarterly profits has reversed. Quarterly profits (reported at an annualized rate) rose from $1.18 trillion in the second quarter of 2009 to $1.42 trillion in the fourth quarter of 2009 and $1.64 trillion in the second quarter of 2010. In the second quarter of 2010, corporate profits were up 39.2 percent from the year-before quarter. Some sectors are benefiting from government policy. Banks are profiting from low interest rates and the ongoing federal subsidies and guarantees. Even as the industry protests the "demonization" and tough regulation, banks just reported their best quarter results in three years, according to the FDIC. CEOs, who have responded quite well to the challenges of the economy and regulation, are still making record profits.
Please stop with the anti-government, anti-Obama administration rhetoric about how they're out of touch with corporate concerns. You're doing quite well, especially compared with millions of Americans. The chronic whining is disingenuous at best and shows just how out of touch corporate CEOs are with the rest of the country at worst.