Stocks & corporate profits are at a record high, but Obama is destroying the economy?

[YoungConserv]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

It's not at all like that, no.

First, government spending doesn't just evaporate. That money goes somewhere. If the government funds a road, money is going to the road construction companies, and all of their suppliers. Next, you do actually benefit from that spending, unlike the mugger. When muggers start defending our nation's borders, building roads, and educating the workforce, let me know. Finally, you have the option to leave the country if you don't like the taxes. Muggers typically don't give you that option.

I live in the boonies now so federal money doesn't do jack for my roads and I'm 50 miles from the Texas Mexico border and I can tell you they don't defend that either. Not to mention that half of that 100 goes into social programs I don't see a dime off and never will. As for education that mugger is the Feds so the dont spend on education it's all funded by property tax here in Texas. Also about leaving the country there are plenty of socialists banana republics to join but the us is the only constitutional republic still standing so I don't have another country go to but you do.

 

[YoungConserv]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Is this thread dead or hibernating?

 

[jonny5]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

How can both be true?

Its pretty simple. Businesses are saving their cash instead of spending it due to high tax rates, regulation, and uncertain economic policy. And some of the record profits it comes from federal borrowing, not real productivity.

 

[Diving Mullah]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

I live in the boonies now so federal money doesn't do jack for my roads and I'm 50 miles from the Texas Mexico border and I can tell you they don't defend that either. Not to mention that half of that 100 goes into social programs I don't see a dime off and never will. As for education that mugger is the Feds so the dont spend on education it's all funded by property tax here in Texas. Also about leaving the country there are plenty of socialists banana republics to join but the us is the only constitutional republic still standing so I don't have another country go to but you do.

I know lots of people mostly couples between ages of 50 and 60 who sold everything and move to Mexico and Costa Rica(oddly many from Texas, haven't figured why such a mass exodus from Texas). Not one has regretted the move. Cheap housing, cheap food, cheap medical services. Close enough that they can come back and visit Friends and family anytime. Actually this one couple, the wife was a professor and she was so stressed that she had gained 30 pounds and had a heart attack, a year after they moved out (living in Cozumel) she is back to her idea weight, healthy as a person half her age and hasn't stop smiling since, she told had they not moved, she was sure she would have been dead by now.

Just an FYI

Diving Mullah

 

[KLATTU]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Its pretty simple. Businesses are saving their cash instead of spending it due to high tax rates, regulation, and uncertain economic policy..

I know that's the rightwing meme, but I call BS.When is there ever going to be certainty?

And taxes are are not very high. Or no higher than they have been for a long time.

 

[jonny5]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

I know that's the rightwing meme, but I call BS.When is there ever going to be certainty?

And taxes are are not very high. Or no higher than they have been for a long time.

The US has the highest corporate tax rate in the world. Individuals pay up to almost 40% federal income tax, plus payroll taxes, state and local taxes, and numerous fees.

There will be certainty when the govt stops borrowing money, stops changing laws significantly, passes a budget, and leaves the tax code alone for a decade. If you are a business who has 10 years of Obamacare regulations coming down the pipe, and then even that is delayed every six months, along with several tax rate changes in just the last 2 years, an unconstitutional labor relations board, constant changes to energy and environmental policy, would you be able to plan long term?

 

[Kushinator]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Because wealth is being created on speculation rather than production.

A rather vague statement. What is a speculative profit?

 

[Kushinator]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

The US has the highest corporate tax rate in the world.

Deceiving figure. Nonfinancial effective corporate tax rate:

Individuals pay up to almost 40% federal income tax, plus payroll taxes, state and local taxes, and numerous fees.

Effective tax rates need to be considered.

 

[DVSentinel]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

How can both be true?

Globalization.

There are now over a 300 Million "consumer middle class" in China, almost as many now in India. While their total purchasing power is still less than the American middle class, companies who's product can fit into that segment see more sales. GM sells more cars in China than in the US.

Oil companies sell gas/diesel worldwide, not just in the US.

Many foreign investors buy stocks through the US exchanges.

These and other factors, as mentioned by others, can affect stocks and corporate profits but still not reflect the actualities of the US economy.

Is employment even a good indicator? What about all those who have seen their earnings cut in half, they are employed now, but they are not having the economic impact they had in the past.

If the economy grows by .5% as measured in dollars spent, but inflation was 5% for the year, did the economy actually grow?

All the economic indicators could be in a positive, but for the average American, the economy can still suck.

 

[YoungConserv]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

I know lots of people mostly couples between ages of 50 and 60 who sold everything and move to Mexico and Costa Rica(oddly many from Texas, haven't figured why such a mass exodus from Texas). Not one has regretted the move. Cheap housing, cheap food, cheap medical services. Close enough that they can come back and visit Friends and family anytime. Actually this one couple, the wife was a professor and she was so stressed that she had gained 30 pounds and had a heart attack, a year after they moved out (living in Cozumel) she is back to her idea weight, healthy as a person half her age and hasn't stop smiling since, she told had they not moved, she was sure she would have been dead by now.

Just an FYI

Diving Mullah

I've never heard anyone going to Mexico from Texas for anything other than vacation, but if they want to move out instead of trying to liberalize Texas I'm all for it.

 

[ChezC3]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

A rather vague statement. What is a speculative profit?

The profit made off speculation of course...

 

[Ahlevah]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

How can both be true?

Keep in mind the previous record was set six years ago, so we're just now getting back to where we were in 2007. The economy is still operating at nowhere near its potential. Real GDP growth in the 4th quarter of 2012 was 0.4% and 1.8% in the 1st quarter of this year. The average over the last year is 1.6%. Real median household income has continued to erode into this recovery; it's basically where it was in 1995, hardly something to crow about. Many of the jobs being added are temporary or part-time jobs in low-paying industries. My personal view is the tax increases that took effect earlier this year will begin to exert a drag on the economy as the year wears on and consumers figure out they just don't have the incomes to buy everything they want and they meet their limits on borrowing. (The average new car loan is now a record sixty-five months.) Meanwhile, large, multinational corporations that make up most of the stock market's capitalization derive almost half of their earnings from abroad, so stocks can perform reasonably well in spite of our weak economy. Nonetheless, I'm hedging my bets.

http://www.hoisingtonmgt.com/pdf/HIM2013Q2NP.pdf

 

[greyhat]

Stocks & corporate profits are at a record high, but Obama is destroying the ec

How can both be true?

Markets don't give a s$it about who POTUS is

 

[jonny5]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Deceiving figure. Nonfinancial effective corporate tax rate:

Effective tax rates need to be considered.

The result is the same. Taxes are too damn high.

 

[Fenton]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Bush appointed Bernanke multiple times....what is your point.

Irrelevent as usual

 

[Fenton]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Trickle down is the biggest joke of an
economic theory I have ever heard. Small business growth was doubled, even with higher taxes, under Clinton compared to Bush.

Clinton built MASSIVE Bubble's and trickle down is a poor and inacurate and uneducated description of a supply side iniative.

A economic strategy that has been completely ignored under Obama with predictable results.

Obama's been a disaster and NO, he's not perpetuating the policies of Bush, his failure's are all his own as he repeates the policies of Western Europe and guarantees mass unemployment, no growth, record Debt and rising dependance.

 

[Kushinator]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

The profit made off speculation of course...

Care to provide an example?

 

[Kushinator]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

The result is the same. Taxes are too damn high.

Obviously not! A stronger normative statement is required to refute the data provided.

 

[YoungConserv]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Obviously not! A stronger normative statement is required to refute the data provided.

How about this is the effective taxes are so low what's the argument for keeping the paper ones as high? Why not drop the written to the effective rate? This makes it easier for smaller business that can afford to hire some one to get them all the loop holes?

 

[Kushinator]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

How about this is the effective taxes are so low what's the argument for keeping the paper ones as high? Why not drop the written to the effective rate? This makes it easier for smaller business that can afford to hire some one to get them all the loop holes?

Depends on what you consider "loops". If you do business in another country, various tax loopholes are utilized; e.g. non-taxed foreign earnings. The untaxed income continues to have balance sheet representation, and is only taxed if it is repatriated via dividends. Repatriation in the form of firm expansion is another animal. Given the low interest rate environment, it is better to borrow (particularly in foreign denomination) for expansion in some cases.

The point stands, the U.S. has an average effective corporate tax rate when you consider developed economies.

 

[jonny5]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Obviously not! A stronger normative statement is required to refute the data provided.

Its a subjective statement. I provided the reasons to support my hypothesis. You have not provided a rebuttal of the same substance. The statutory tax rate is too high. So is your undefined effective tax rate.

 

[Kushinator]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Its a subjective statement. I provided the reasons to support my hypothesis. You have not provided a rebuttal of the same substance. The statutory tax rate is too high. So is your undefined effective tax rate.

The effective tax rate is what matters. The data has been presented, and the US has an average CIT rate with regards to developed countries.

 

[ChezC3]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Care to provide an example?

Tell ya what, the answer, and any other answers you may seek -- you can probably find here:

Investopedia - Educating the world about finance

or here:

Google

I've been told these are wonderful resources of knowledge, and the best thing is you no longer need to wait for me. I've never been one to elucidate on the simple things, I just don't have the patience. Now this way you can learn at your own pace...

 

[Kushinator]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Tell ya what, the answer, and any other answers you may seek -- you can probably find here

Your low level shuffling will not work. I bet you cannot even define speculative profit. What is the speculative profit differential in the U.S. between years 2006 and 2012?

 

[ChezC3]

Re: Stocks & corporate profits are at a record high, but Obama is destroying the econ

Your low level shuffling will not work. I bet you cannot even define speculative profit. What is the speculative profit differential in the U.S. between years 2006 and 2012?

OK, you're right, I don't know...:roll:

good day! :2wave: