Brewha wrote:Stock market recovery,
Obamacare,
Dramatic drop in unemployment,
Osama bin Laden is dead........
I know that FoxNews is the only reception one gets under a rock, but you should get out more.
The stock market is trading near all time highs. Before this latest hiccup, my self-directed retirement accounts were up about 30% for the year. But, I wonder what will happen when interest rates begin creeping up. Of course these effects will not be felt during the current administration. It'll be the next President's problem. The fiscal policy set forth by Obama's appointees will chart that path.
Besides, most companies used as the barometer for the health of the stock market do not base their business on a four year business cycle. Even those companies considered cyclicals. Those companies don't make long term strategic B$ decisions based solely on who is in the Whitehouse. Too much uncertainty. What if the next President has a different agenda? They are opportunists who form a long term strategy, implement said strategy then navigate the choppy waters. It does help though when they are able to lobby our elected leaders for favorable legislation
You do realize just how misleading the unemployment rate statistic is don't you? It simply measures the change in the number of new unemployment claims. Even more important is what it doesn't measure. It doesn't measure the number of people who withdraw from the job market. It doesn't it measure the rate of growth in part time jobs vs. full time jobs. But to be fair and balanced It's the same matrix that has been used as a major barometer of jobs market for decades regardless of which party is represented by the President.
I'm all for some form of healthcare which provides universal access to all American citizens. But, I don't think what we have is the answer. The way it has been implemented it inadvertently provides incentives for certain sectors to transition jobs from full time to part time. Since part time jobs usually lack any long term stability or benefits I think it's safe to say those jobs are less desirable for the average worker.
Obamabcare is a huge expense for employers who are in the lower tier of employers based on number of employees. As a result it forces these employers to look for inefficiencies. One easy option is to to begin outsourcing administrative functions which do create other jobs, but displaces those who performed those jobs before they were outsourced. Those whose jobs have been outsourced usually end up in the unemployment line, take jobs where they are considered unemployed, attempt to start up a new business or leave the job market all together. Three of those four choices have a negative effect, the other a toss up. If one attempts to start a new business and fails it usually means the substantial loss of any retirement nest egg. Also, not a good thing.
In addition, many companies disburse profits above a certain level back to their employees in the form of bonuses and 401K contributions. The jury is still out on the effect that Obamacare will have on these. I don't think their has been any study on this, but if expenses rise there will be less profits, hence less employee distributions.
Even with OBL dead, Americans or no safer than when he was alive. Others have quickly stepped into that vacuum.
Like I said earlier, I don't know the answer, but it would be nice if our elected leaders would take a bit of time from the never ending campaign trail to address these issues. But, I'm sure we will be waiting a long time for that.
