Consumers get optimistic, but CEOs hold back

  • Article by: ADAM BELZ , Star Tribune
  • Updated: November 16, 2012 - 10:45 PM

The reason for the gap in perceptions is the struggling global economy, which is front of mind for many executives but less visible to the average consumer. The fact is that America's largest companies are less dependent on the U.S. market every year.

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punky2012Nov. 16, 1210:55 PM

Different lenses? No. Businesses see the economy as REALITY through declining revenues and higher taxes and expenses whereas the average person sees the economy through the Obama administration-produced, "seasonally adjusted" unemployment figures which are highly subject to manipulation and LIBERAL MEDIA SPIN which has been telling us for THREE YEARS now that the economy is "getting better" when it hasn't been. In January 2012, the economy actually LOST 2.7 million jobs. (This is normal after Christmas.) But the Obama administration (which heads the Dept. of Labor) performed a "seasonal adjustment" which transformed a 2.7 million job loss into a 244,000 job gain, which was later revised upward to a 275,000 job gain. Isn't it amazing that the economy actually loses jobs but the Obama administration says it created a huge amount--an amount of jobs that would be impressive even in a strong economy, but is completely unbelievable in a weak economy? Not even the Federal Reserve believes Obama's LIES about the economy. Read: "Federal Reserve officials have cited doubts about the accuracy of the monthly jobs number as one reason for their uncertainty about the health of the economy." Source: "Beware the Jobs Report of July" - NYTimes.com, Aug. 2, 2012. It's all ONE BIG LIE! The unemployment rate dropped from 10% for ONE REASON only: millions of unemployed workers stopped looking for work.

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punky2012Nov. 16, 1211:04 PM

"Exporting can really help you to smooth your business cycles..." Since America has among the HIGHEST business taxes in the world, manufacturing on U.S. soil and exporting makes little sense. It makes less sense every time Obama opens his mouth and demands higher taxes. The new tax on medical companies as part of Obamacare is going to shift many thousands of jobs out of America and onto foreign soil. Why? To get away from Obama and the Democrats. READ: "In October of 2009, Boston Scientific CEO Ray Elliott, warned that proposed taxes in the health care reform bill could "lead to significant job losses" for his company. Nearly two years later, Elliott announced that the company would be cutting anywhere between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas - to China. A short list of other companies facing future layoffs at the hands of Obamacare...(read more)." Source: "Companies plan massive layoffs as Obamacare becomes reality" - WashingtonTimes.com, Nov. 8, 2012. WE TOLD YOU SO!

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jcinmnNov. 17, 12 4:53 AM

With corporate tax contributions equalling 6% of the total revenue collected by the IRS it is OBVIOUS that these corporations are not "American" in any way shape or form. Exxon Mobile pays NO income tax to the IRS. GE pays 6% of its earnings and shelters the bulk of it. Apple computer has moved its "corporate headquarters" off shore to avoid paying taxes on its bonanza of revenue generated by I-pod and I-pad sales. It is beyond my why we should fund a military that costs us 6 times the amount we collect from these "American" companies to protect their foreign ASSets.

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texas_technomanNov. 17, 12 5:12 AM

It's ironic, especially based on the two letters prior to mine, that the US economy is doing "OK", while economies in Europe and other places that have chosen the "austerity" route to recovery are faltering. I guess that's something else we can blame on Obama and his "failed" economic policies....but then most of us are just a bunch of moochers and takers!

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elmore1Nov. 17, 12 6:13 AM

US companies have been sitting on piles of cash and holding off on expansion in the US for the past several years. The election did little to change this. Look for expansion to continue overseas for global companies. The fed needs to start working with the private sector or nothing will change.

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clnorthNov. 17, 12 7:15 AM

"US companies have been sitting on piles of cash and holding off on expansion in the US for the past several years" They have been sitting on cash because there is no reason to expand. There is no growth. Why would they hire more workers to produce more product if there is no demand for the extra product they produce? If the government had allowed consumers to spend the billions that were wasted by the pork stimulus, consumers would have spread that money around and there would have been demand for product. Instead, the government paid off the unions.

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tbot2000Nov. 17, 12 7:24 AM

Even as consumer spending rises, CEOs hold off on expanding and hiring. Case in point: the rich are wealth creators, not job creators. Cutting taxes does nothing to increase jobs. This has been proven over and over and over again..

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demandsiderNov. 17, 12 7:40 AM

clnorth, Union members are part of the demand side, remember? Our real problem is our 37th straight trade deficit in a row. Germany sells more manufactured goods to China with 80 million people than we do with over 300 million. This economy funnels profits overseas and also in to the NON demand side. It's much better for demand to have 20,000 people making $50,000/year than 1 billionaire. No manufacturing = no middle class.

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pitythefoolsNov. 17, 12 7:52 AM

punky2012: "The unemployment rate dropped from 10% for ONE REASON only: millions of unemployed workers stopped looking for work."

Then why have both U-3 AND U-6 been declining? And if you don't know what that means, you have no basis to form an opinion on the subject.

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pitythefoolsNov. 17, 12 7:53 AM

tbot2000: "Cutting taxes does nothing to increase jobs"

Correction: Cutting taxes on the wealthy does nothing to increase jobs. Cutting taxes on the middle class, who will spend it, increases jobs.

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