Corporate earnings can increase when wage costs are significantly reduced. But that can still mean unemployment may continue to remain high. While productivity will go up.
But that happens only during what they call a classic recovery. In fact, some economists say the end of a recession is marked when productivity goes up. But that still does not remedy high unemployment problems.
Our present deep recession is spurred on by the Obama Administration’s spending sprees and costly legislation. That necessitates huge taxes that hurt large and especially small businesses, before they can attempt to recover.
When companies can avoid imposed governmental fears and start hiring again, and keep earnings up, will there be real positive signs of the end of the recession.
The current fiasco is a classic example of what happens when government uses a combination of useless stimuli and high taxation, and other anti-business devises to get business going.
Leave business alone so that earnings will create the jobs for a true recovery.
No comments:
Post a Comment