Free Markets, Free People


So, economically, how’s the election working out for us?

If you’re at all concerned about the economy, the answer is likely “not very well”:

U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.

Half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.

Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined.

At the same time, exports are slowing or falling to such critical markets as China and the euro zone as the global economy downshifts, creating another drag on firms’ expansion plans.

Why are we seeing this happen?  As it stands, most corporate spenders see no possibility of the hostility toward corporate America easing and also view whatever is to come in January concerning taxes and tax policy to likely be a lose-lose for them however it goes:

Corporate executives say they are slowing or delaying big projects to protect profits amid easing demand and rising uncertainty. Uncertainty around the U.S. elections and federal budget policies also appear among the factors driving the investment pullback since midyear. It is unclear whether Washington will avert the so-called fiscal cliff, tax increases and spending cuts scheduled to begin Jan. 2.

Companies fear that failure to resolve the fiscal cliff will tip the economy back into recession by sapping consumer spending, damaging investor confidence and eating into corporate profits. A deal to avert the cliff could include tax-code changes, such as revamping tax breaks or rates, that hurt specific sectors.

Or, as before the election, an unstable business climate persists which does not provide any incentive to expand, spend or hire.  In fact, as indicated above, it is providing precisely the opposite incentives.  It’s one reason the GDP forecast for the country has been downgraded again to 1.5% (Mexico, for heaven sake, has GDP growth of 3.2%).

But when you vote for the status quo, well, you get what you vote for — enjoy.

~McQ

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20 Responses to So, economically, how’s the election working out for us?

  • Elections have consequences.  On the plus side, free birth control! We can hand it out to the women as they stand on the bread lines.

  • I hardly know where to begin…
    This is the age of Obama-us, FREE STUFF will pour from the manufacturers.  Nearly FREE green resources will power the plants and our vehicles and light our homes from sea to glorious shining sea.
    Farmers everywhere will absorb the additional costs of energy and fertilizers for their crops and(we don’t know who took this part out) will produce massive nearly free harvests for us.   There’ll be so much broccoli and kale and healthy food that we’ll eat it just for the novelty between the feasts of Twinkies and other Hostess snackie cakes (once Hostess has been determined to be too important to let it fail…)
    Ranchers and other livestock breeders will spend their last dime to buy feed for their stock and practically) deliver it to our doors, ready to heat and eat.
    The climate will cool, the oceans will calm.  Why, next month, the Palestinians and the Jews will sit at the same table and have Christmaswinter happiness seasonal dinner together, THAT’S how good things are going to be!
    Because Obama is going to be a BETTER President, a Trying HARDER President, a President who unites us.

    But all that aside, he’s going to deliver FREE stuff to us, lots and lots of FREE stuff , and that’s what really matters isn’t it? FREE PHONES!  FREE FOOD!  He’ll PAY OFF YOUR COLLEGE LOANS!  He’ll allow marijuana to be sold on street corners, and they’ll PAY YOU your purchase money back to smoke it!  He’ll bring back high paying manufacturing jobs where the full times hours will be 1:00 to 2:00 with an hour off for lunch!  With all that free time available to us, he’ll send EVERYONE to college, FREE!  We’ll all have nice American made cars from GM, FREE!  And we’ll all live in giant government paid for mansions with loans that we don’t even have to pay off, EVER!   Health care will be free and you can get whatever operation or treatment you like whether you need it or not!  Your Granny and Grandpa will have their lives extended to infinity! YOU YOURSELF WILL NEVER GROW OLD!  If you’re overweight, you’ll slim down!  If you’re too skinny, you’ll become JUST RIGHT!   Everyone will have free birth control! and Gays will be able to marry after he passes the Gay Marriedness bill in his, uh, third term!(best not to get too carried away here….)

    The miracles will be too many to possibly list! The U.S. will be a stronger, free-er, better, fundamentally changed country that the world will all want to be part of!
    And the best part is ONLY THE RICH will have to suffer, a little, unless they’re bad RICH, and then they’ll suffer a lot :) !   Especially if they know George Bush!  :) (mabye this is a little too much gloating)

    Ahhhhhh, it’ll be swell.

    But these business leaders, they’ll try to wreck it…they’ll try to destroy the beautiful plan.  They WANT you to suffer, they don’t want the unicorn rainbow ships to come from the moon ponies because they’re evil, greedy, Republican, RICH RACISTS.  They’ll try to destroy things by pretending they don’t have enough money to pay people, or to provide all the free-ness.  But there’s lots of money in this country, lots and lots and lots.

    So don’t believe them, have faith in Obama, and he will deliver the miracles to you, soon!  Free!

  • Everything is proceeding as I have foreseen.

    And it will get worse.  Sure as carts to horses…effects to causes, etc.

    • Which is why Boehner needs to fold on the tax increases and give Baracky whatever he wants. Let it burn and lay the smoking ashes at Lightworker’s feet.

      • If he does anything ELSE he’ll get 100% of the blame for anything and everything that falls apart.   They need to make it public, on all the networks.  They have finally come to their senses, they have seen the will of the American people, they are 100% BEHIND the President in this time of crisis, and ready to raise taxes, even tax all foreigners now living abroad if the President deems that necessary.  Whatever he needs, whenever he needs it, they hear and obey.

        It’s okay though, if the Republicans are too stupid to see this moment in history for what it is, then the party can go the way of the Dodo with my blessing.

        • One HUGE problem I see with this strategy is “the narrative”.  How do you see conservatives NOT being blamed?
          I mean, consider that BOOOOOOOOOOOOOOOOOooooooooooooooooosh is blamed for the economic downturn, and Obama constantly chants, “We tried it their way, and our economy got crushed”.  Even our reliable house idiots deny that the Collectivists were the driving force behind the financial collapse.

          • Actually I don’t see the conservatives escaping blame by the Democrats (to say the media would be redundant) no matter what happens.    The most likely ‘victory’ comes at the cost of collapse of large swatches of the country, and that’s hardly a victory.  No, we’re pretty much screwed until Levithan can’t sustain itself any more.  It’s just a matter now of how BADLY screwed.  Pity really, my mortgage is nearly paid….sigh.

          • Then at least the deserving will suffer greatly. It will be our only solace

      • I am worried about this. I mean, they need to come out every day and say “We are waiting for leadership from the President. Where is his CBO scored plan for us to approve?”
        Otherwise, Obama can do nothing and then say “they wouldn’t negotiate.” and the press will print that.

  • You know, I thought at some point in the last 4 years Obama would end up owning this mess, but that didn’t happen. He’s good at not owning anything. I would think he will end up owning it over the next 4, but really, who knows.

  • When are people going to realize ObamaNomics is NOT mere foolishness, but a malignant effort to crash the economy with him then ending up as dictator (when societites collapse, people vote a dictator to fix everything, as in “Make the trains run on time).
    Also, his Defense spending policy is not calculated to save money, but to make us vulnerable. Very much so.

    • Yep.  As I’ve said numerous times…Cloward-Piven perfected to attack BOTH supply and demand.

    • If he does the dictator thing as well as he’s been President, then I expect his President-for-life term will last about as long as
      Gordian I, Roman Emperor for 3 weeks in AD 238.
       

  • Businesses will be pulling out of this slump as soon as the doubt about what will happen about the fiscal slope.  Indecision has been holding everything back. Now that the President has been reelected and Affordable Health Care Act (Obamacare) has been settled, we just need the Republicans to agree to compromise on the fiscal issues that present themselves by the beginning of the year.

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