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GDP shrinks 1% in Q1


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http://www.foxbusiness.com/economy-policy/2014/05/29/chilly-1q-us-economy-contracts-for-first-time-since-11/

 

This is a recovery?

 

I believe I commented on the last thread on this when the initial numbers were released that I suspected it would be revised downward. Wonder what headlines will break today in order to distract us from this news?

 

This part I find particularly troubling as well:

 

 


The report showed corporate profits after tax plunged at a 13.7 percent rate, the biggest drop since the fourth quarter of 2008.

 

Have companies finally reached a point where they can't trim anymore fat? At some point the economy needs to grow if companies are going to keep making any money.

Edited by NickF1011
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You can't expand an economy when such an overwhelming number of people aren't contributing to it. (and are actually sucking the life out of it)

True, and thanks to Conservative Republicans and the US Chambers of Commerce who insist that keeping the Federal Minimum hourly wage at $7.93 @ Hr. really helps, huh? If someone was making $9.00 or $10,00@ Hr it would be a Job Killer and all that extra disposable income would just be spent on Beer and Lottery Tickets anyway, right? Thanks to anti-union and right to work States, that is, the right to work for (less), you have the situation you have. Odd how the most disadvantaged and poor can be convinced to Vote against their own self interests. Just another prime example of the "dumbing down of America".

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True, and thanks to Conservative Republicans and the US Chambers of Commerce who insist that keeping the Federal Minimum hourly wage at $7.93 @ Hr. really helps, huh? If someone was making $9.00 or $10,00@ Hr it would be a Job Killer and all that extra disposable income would just be spent on Beer and Lottery Tickets anyway, right? Thanks to anti-union and right to work States, that is, the right to work for (less), you have the situation you have. Odd how the most disadvantaged and poor can be convinced to Vote against their own self interests. Just another prime example of the "dumbing down of America".

 

I work in a right to work state. I made minimum wage for 8 years in high school and college. I left college (with a degree with actual career potential and not something in "Renaissance Impressionistic Art") and worked my way up. I wasn't recruited and had to bust my ass for everything and I took advantage of every opportunity. NOTHING was given to me. I now make 6 figures and am globally respected for my knowledge and expertise by my coworkers. All it takes is patience, hard work, good career decisions and the willingness to sacrifice in the short term for long term success.

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True, and thanks to Conservative Republicans and the US Chambers of Commerce who insist that keeping the Federal Minimum hourly wage at $7.93 @ Hr. really helps, huh? If someone was making $9.00 or $10,00@ Hr it would be a Job Killer and all that extra disposable income would just be spent on Beer and Lottery Tickets anyway, right? Thanks to anti-union and right to work States, that is, the right to work for (less), you have the situation you have. Odd how the most disadvantaged and poor can be convinced to Vote against their own self interests. Just another prime example of the "dumbing down of America".

The number of persons working for minimum wage is miniscule in this country, and chances are if low wage workers are capable of producing $10.00/hr of value, they're already making it.

 

You've apparently never (or in a very long time) tried to hire qualified (and willing) workers.

 

It's not easy.

Edited by RangerM
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My favorite is all the fast food workers that want $15.00 an hour. lol

 

Let me clue you fast food workers into a little reality here.

 

1. The food is crap. The only reason people eat fast food is because they can get it fast.

 

2. The service is crap. I can't even begin to count how many times they get my order wrong. It's the wrong drink or the wrong size fries or the straw is missing or there's no napkins or I asked for no onions and there's onions all over my burger. The list goes on and on. I don't bitch them out though because its a fast food joint and you can't expect much from the kids that work there.

 

So here is the end result. If they start charging 10 bucks for a Big Mac meal at McDonalds because they have to pay the crappy workers in the store $15 bucks an hour then people will just stop going to fast food joints. Guess what happens then fast food workers? Let me help you since most of you failed economics. You lose your jobs. No 15 bucks an hour.

Edited by BlackHorse
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My favorite is all the fast food workers that want $15.00 an hour. lol

 

Let me clue you fast food workers into a little reality here.

 

1. The food is crap. The only reason people eat fast food is because they can get it fast.

 

2. The service is crap. I can't even begin to count how many times they get my order wrong. It's the wrong drink or the wrong size fries or the straw is missing or there's no napkins or I asked for no onions and there's onions all over my burger. The list goes on and on. I don't bitch them out though because its a fast food joint and you can't expect much from the kids that work there.

 

So here is the end result. If they start charging 10 bucks for a Big Mac meal at McDonalds because they have to pay the crappy workers in the store $15 bucks an hour then people will just stop going to fast food joints. Guess what happens then fast food workers? Let me help you since most of you failed economics. You lose your jobs. No 15 bucks an hour.

 

The fast food chains are already talking about replacing cashiers with kiosks.

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It's a lot easier to blame other people for your lack of success than it is to take personal responsibility for your own choices.

 

How much a cashier makes at McDonalds or how much Bill Gates makes has absolutely no bearing on what I make or my ability to support myself.

All it takes is determination and a little hard work.

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They have also experimented with automated assembly. (burgers, fries, etc.)

 

It's only a matter of time.

 

As Blackhorse said, the food is crap (my only use for McDonald's is the men's room while on the road). The main draw is speed and price. If the price goes up, people will stop buying. It won't survive at a higher price point.

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the willingness to sacrifice in the short term for long term success.

 

Bingo! The world today just does not understand that. Everything is about instant gratification.

 

I always tell everybody that I busted my tail in high school to get scholarships so I didn't have to bust my tail in college to pay for college. Then, in college, I busted my tail again so that I didn't have to spend the rest of my life busting my tail. Now, I don't have to work as hard as someone on a factory floor because I put off the fun. However, I bust my tail now so that I can retire early! :)

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Minimum wage earnings & jobs are not intended to be a lifelong middle class job until retirement. Its best as a transitional or entry level wage people make and move on.

I earned minimum wage when I was 16 years old and my wages went up each year as I had better jobs and improved my skill set.

 

I worked for a prior company as a toolmaker and the bulk of the company was material handling and assembly work. Our contract increase in wages was always based on a % of our base wage. At some point the majority of the workforce did not like it because 7% of a skilled tradesman's wages was more than an assemblers 7% on a lower hourly base rate they demanded a flat wage increase so everyone got the same amount of a raise. That went on for several years until the base wage of a person putting packing peanuts inside a cardboard box was WAY over the national and state average for that job skill set. What happened next the company put in 2nd tier wages that capped at a lower rate than the current pay rate. The company had a layoff and gave people a choice of a buyout package or call back rights to last 1 year, no one was called back and new hires were made to fill those same jobs at the new lower rate.

 

If you do the same for several minimum wage jobs many will be replaced by automation or simply go away.

Anytime you think you are sticking it to the company you are really passing it along to the customer or its coming out of your own wages & benefits.

 

Minimum wage has a sweet spot and I have no idea where that should be but if its too high its just as bad or worse.

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http://www.cnet.com/news/mcdonalds-hires-7000-touch-screen-cashiers/

 

As noted above.. the $10-15/hr hamburger flipper will be replaced.

 

Take a look at what happens when a job "demands" more than what it is worth.

 

Wages should be based on "Skills and Responsibility".

 

McDonald's hires 7,000 touch-screen cashiers

Would you like some microchips with that burger? McDonald's Europe strikes another blow against human interaction by installing 7,000 touch-screen computers to take your order and money.

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You can't mandate wages that are out of line with the market unless it's a closed market with no possible competition.

 

The market will dictate that you automate to save money or you go out of business.

 

People who look at minimum wage jobs at anything other than a stepping stone/entry level/temporary position don't understand how businesses operate or they're just looking for more government welfare for lazy people who don't want to put forth any effort to support themselves.

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The fast food chains are already talking about replacing cashiers with kiosks.

They have already tested the concept in 2011. Get Go and other gas stations have ordering kiosks now. The move would be simple. All they need is the financial pressure to endure the public image hit when they eliminate 50% of their workforce. Like $4.00/gas. The first time was the big shock. Do it for a little while. Take the heat. Back-off a while then phase it in over time. People will accept it.

 

Hint: You cook the frog by raising the water temperature......slowly.

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People have adapted and will continue to adapt to kiosks just fine, and companies will be more than happy to do it. Look at self-serve gas stations for one example from the past. I actually prefer ordering food from kiosks personally, as it gives me a moment to think about my options and it gives the person filling the order the exact written thing I want. Perfect for sandwich shops.

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True, and thanks to Conservative Republicans and the US Chambers of Commerce who insist that keeping the Federal Minimum hourly wage at $7.93 @ Hr. really helps, huh? If someone was making $9.00 or $10,00@ Hr it would be a Job Killer and all that extra disposable income would just be spent on Beer and Lottery Tickets anyway, right? Thanks to anti-union and right to work States, that is, the right to work for (less), you have the situation you have. Odd how the most disadvantaged and poor can be convinced to Vote against their own self interests. Just another prime example of the "dumbing down of America".

Fascinating! I will ask a question to answer your question!

 

Since at the height of our unionization in this country, those ranks were around 1/3, how is it we had a much higher standard of living than those countries that were fully 75 to 90% unionized?

 

If you research and answer your own question with the proven facts that I have laid out, your whole argument falls apart. It is not the evil rich company/corporation owners holding Americans back from receiving a good wage, it is the cost of the product when compared to other venues that product could be built.

 

The trick to the whole formulation is----------> that if our labor costs MORE to build it here, then something in the formula must cost LESS to entice the owners to build it here. So what would that be? ENERGY! Not under Obama, China builds an average of one coal fired electric plant a week, he wants to close them. We have all of this energy, and wouldn't you know it, he says no, heck no, do not pass go, do not collect 200 dollars. REGULATION! Nope, this government regulates everything, including toilet paper.(check out the toilet paper statement if you don't believe me) TAXES! Highest corporate income taxes in the world, so that isn't going to happen under Obama.

 

So when people who take your stance talk, the only way for you to learn the truth is to investigate; and it is easy to find out if you try. Doesn't mean you will become a conservative, it just means you will quit focusing on that aspect of progressive failure blaming it on us, and instead concentrate on another progressive talking point, that we will unceremoniously prove false also by your own investigation.

 

Hey, you might become conservative after all!

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