Why Wall Street is flying high now

Interesting piece about why Corporate America is doing very little hiring, despite record cash reserves and big profits. Any thoughts?...

http://www.marketwatch.com/story/why-does-the-dow-soar-while-economy-struggles-2013-03-08?siteid=yhoof2

Why would a corporation hire people just because they have cash reserves or making a profit? A company is not a charity, they will hire people if they think that will allow them to make more money.

Originally posted by bill718
Interesting piece about why Corporate America is doing very little hiring, despite record cash reserves and big profits. Any thoughts?...

http://www.marketwatch.com/story/why-does-the-dow-soar-while-economy-struggles-2013-03-08?siteid=yhoof2

The stock market isn't really flying as high as you think. Read the few posts on the thread I posted.

http://www.redhotpawn.com/board/showthread.php?subject=Understating_the_CPI&threadid=151781

Originally posted by bill718
Interesting piece about why Corporate America is doing very little hiring, despite record cash reserves and big profits. Any thoughts?...

http://www.marketwatch.com/story/why-does-the-dow-soar-while-economy-struggles-2013-03-08?siteid=yhoof2

The article states that one of the problems is that the US corporate tax rate is too high and looks favorably on exempting 95% of repatriated dividend to induce companies to bring money back to the US. It also sites additional mandates on employers such as Obamacare and its encouragement to hire part time as opposed to full time workers.

Perhaps if we did not over employers they would hire more.

Originally posted by KazetNagorra
Why would a corporation hire people just because they have cash reserves or making a profit? A company is not a charity, they will hire people if they think that will allow them to make more money.

Because the world is about people and happiness, not about share-holders making profits over the backs of starving children.

Oh, and if it is about the latter... Don't you think it needs fixing?

Originally posted by shavixmir
Because the world is about people and happiness, not about share-holders making profits over the backs of starving children.

Oh, and if it is about the latter... Don't you think it needs fixing?

Full employment can be trivially assured without making every multinational corporation go bankrupt.

Originally posted by KazetNagorra
Full employment can be trivially assured without making every multinational corporation go bankrupt.

It can't.
There are laws which for e companies to continually increase profit for shareholders.
And markets get saturated. The only way to maintain the drive for profit is by layin off the workforce and lowering quality.

Less people then have money and the market gets saturated even faster.

That's the system and it doesn't correspond to the needs of humanity or the world.

Originally posted by shavixmir
It can't.

Sure it can. The government can either subsidize labour, which automatically creates jobs, or order public works.

Originally posted by KazetNagorra
Sure it can. The government can either subsidize labour, which automatically creates jobs, or order public works.

It could. But who controls government?
And do they want nationalization?