Go figure!
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Posted on 04/13/2010 6:18:10 PM PDT by 2ndDivisionVet
A survey from accounting firm Grant Thornton confirmed the majority of business owners and executives consider the country still in a recession, and have no plans to hire within the next six months, with 22 percent saying they're going to cut back on hiring.
Together, only 29 percent had any plans to hire over the next six months, showing the reality of what business executives know, that there is no recovery yet, and until there is, they're not going to incur the extra cost of hiring new employees.
Now that the replenishment of inventories is over, and little real economic growth happening, companies are in a wait-and-see mode until a turnaround comes.
Some watching the retail rebound in the U.S. have attempted to make it look like it's a sustainable event, but more than likely all that is is the spending of tax return money be consumers, and when the next quarter comes we should see that reality reflected in the quarterly reports.
The best metric for the economy, because of the untrustworthiness of what is coming out of official government channels, is unemployment and unemployment benefits.
Unemployment went up again last week, and there is no improvement in those already unemployed. So if there is an economic rebound, like so many are asserting, there would be hiring because of the obvious demand.
Since there is no real demand, there is no hiring, it's as simple as that, and this survey confirms it.
I would add that this is just for the next six months, as there's no way the companies know what will happen beyond that. The mood seems to be there will be no hiring until real demand is restored, and until that time job creation won't keep up with those who need a job.
For the recession, those surveyed said they expect it to go at least to 2011, and 24 percent said they think it'll extend out farther than even that.
With these executives being the ground troops, this is more reliable than any data that can be manipulated and interpreted to say what the government wants it to say.
According to the vast majority of the executives, the best way to create jobs is to cut corporate and personal income tax rates, which 66 percent saying that would be the best way to go forward.
... wait until the health insurance companies start going belly up”
Most of the insurance carriers started making changes a couple of years ago. Call centers are now in the Philippines and India, payments and benefit statements to providers are on-line so no mail or paper, authorization requests are on-line, claim problems can be resolved through chat rooms. Works fine if you have no problems but problem resolution is almost impossible.
Why on earth did you give Obama an interest free loan??? Please, people, adjust your withholding so that you take home more and don’t wait for a check to return what is YOUR MONEY in the first place. And if you choose to not purchase Obamacare insurance, the IRS will have no money to keep. If everyone maximized their withholding, the feds would really see a difference immediately!!!
“Many companies cut to the bone to survive and they find that profit can go up without hiring. The principle of diminishing returns is working right now, and the recession will not be over until they are in need of hiring new people.”
Plus there is great uncertainty about tax and regulatory policy. We know taxes are going up and government regulation will be more severe. However, we don’t know the full impact of taxes and regulation because the Obama administration has yet to reveal its real plan. In the face of uncertainty, it is impossible to plan for the future. It would be insane to expand in the face of sluggish demand and inability to project future expenses. Hiring comes with expansion plans. Few are willing to expand in this uncertain environment.
Understand this... if you take the government's goodies, you get the government in your books. DON'T TAKE THE DEAL... If it is not economical to hire a worker, it is not economical with government "gifts." Eat contaminated food... get sick.
Whenever hiring... hire conservatives. DO NOT give communists and people who vote for communists the fruit of Free Enterprise. Let them suckle on Washington. Free market jobs for CONSERVATIVES. DON’T REWARD THE LEFT WITH JOBS...
Color me unsurprised.
Let’s review why no sane business will hire:
1) Nationalization of Banks
2) Nationalization of Insurance
3) Nationalization of Student Loans
4) Nationalization of Mortgages (see FHA)
5) Nationalization of Autos
6) Nationalization of Energy (planned)
7) Massive Fiscal Deficits
8) Massive Currency Blowout
9) 0bamanomics: Punish success, reward failure
10) Income Tax Increases
11) Capital Gains Tax Increases
12) Employment Tax Increases
13) Tax Increases for being alive (0bummerCare)
14) “Stimulus” bills
15) Cronyism, vote buying, corruption
16) Civil unrest
17) Capital Flight
18) Etc.
You would have to be crazy to hire in this environment. Politically, this is good for Republicans, if bad for the unemployed, because there is no chance the 0bummer Administration will change its stripes to unwind all this damage.
So just pass a law requiring them to hire people.
That’ll fix it. :)
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