Double-Dip Recession a 'Virtual Certainty'

[Dan J 277]

I really dont think business leaders make decisions based on a frickin news article. They look at hard costs!

Lets say you want to grow your business. To do so you need to hire 10 employees. You look at the cost, and see that you can afford it, all good there.

Then you look at the economy to evaluate how risky taking on business expansion would be. If the company's tolerance from risk is low, they might look at an article like this , provided that they find the author "trustworthy" and decide to shelve expansion plans.

Those people that could have been hired, even though the company can afford the costs, wont be because the perceived risk of expansion is too high. because most business people are not economists, they are going to defer to economists that they "trust".

[Captain Oates 911]

Been married a few years now, so it's a while since I experienced a double dip

Perhaps I will get respite leave after a few more years

[Mr. Big Dog 10,747]

No it isn't. People without jobs cannot spend because they don't have any. People with jobs worry about losing their jobs in today's market so it would be foolish to spend money they may need later to survive. This isn't about the people not doing their "jobs" and spending like a sailor on leave and to hell with tomorrow. The way for business to overcome the uncertainty and start hiring again is for the government to create conditions that reduce that uncertanty. If they think higher business taxes are on the way and more regulation is on the way they will not hire. This is 100% the governments fault, not the people who are trying to survive.

The almighty gubmint, eh? What it is is a catch 22. People don't up their spending until the employment outlook improves and business don't hire until consumers start spending. The best the government can do is start the cycle by helping consumers to spend. It's doing that and getting all the heat one could hope for from the very folks that blame it for spending too much and failing the economy.

Look across the pond and see how a government can successfully jumpstart an economy. Of course, the government that pulled it off is a government of a populace not bamboozled by stupid anti government movements blaming the government they so oppose for not doing enough.

[HAL 9000 96]

The almighty gubmint, eh? What it is is a catch 22. People don't up their spending until the employment outlook improves and business don't hire until consumers start spending. The best the government can do is start the cycle by helping consumers to spend. It's doing that and getting all the heat one could hope for from the very folks that blame it for spending too much and failing the economy.

Look across the pond and see how a government can successfully jumpstart an economy. Of course, the government that pulled it off is a government of a populace not bamboozled by stupid anti government movements blaming the government they so oppose for not doing enough.

I know its really naive... but the second stimulus should have gone directly to consumers- ie, US.

[Pinocchio Liberal 268]

Lets say you want to grow your business. To do so you need to hire 10 employees. You look at the cost, and see that you can afford it, all good there.

Then you look at the economy to evaluate how risky taking on business expansion would be. If the company's tolerance from risk is low, they might look at an article like this , provided that they find the author "trustworthy" and decide to shelve expansion plans.

Those people that could have been hired, even though the company can afford the costs, wont be because the perceived risk of expansion is too high. because most business people are not economists, they are going to defer to economists that they "trust".

The scenario above is an example of the evil rich! I will have no part of it! Get it Dan?

[HAL 9000 96]

What was that about a camel and an eye of a needle?

[Ban Hammer 13,344]

What was that about a camel and an eye of a needle?

don't talk about pointed objects and livestock, because it will get spooky excited.

[HAL 9000 96]

don't talk about pointed objects and livestock, because it will get spooky excited.

Points should definitely be considered, particularly in the actual context of what the perception of the economy does to the economy.

[Captain Oates 911]

I have upped my income

So up yours !

[JohnSmith2007 353]

I know its really naive... but the second stimulus should have gone directly to consumers- ie, US.

Rather than all this stimulus plans that have done nothing but put us further into debt and haven't get the economy going I would have rather seen a 2 year corperate tax holiday. That would have gotten people back to work.

[HAL 9000 96]

Rather than all this stimulus plans that have done nothing but put us further into debt and haven't get the economy going I would have rather seen a 2 year corperate tax holiday. That would have gotten people back to work.

That's why you have your opinions.

[JohnSmith2007 353]

That's why you have your opinions.

You don't think that would have stimulated job creation and the economy?

[HAL 9000 96]

You don't think that would have stimulated job creation and the economy?

Not in any direct amount beyond the bank accounts of the shareholders and CEOs pocketing the increases in profit, no.

[JohnSmith2007 353]

Not in any direct amount beyond the bank accounts of the shareholders and CEOs pocketing the increases in profit, no.

Why? I think it would have enabled business to expand and hire.

[SMOKE 1,426]

i gotta 10% raise within the last year & i'm still not buying jack. needless to say i believe the double dip forecasters.