This morning I heard a financial commentator discussing the rise in the stock market. He pointed out how the well-off, who generally are invested in the stock market, are benefiting from the flood of money the government (and the Federal Reserve) are pouring out.
Interest rates are being kept artificially low-which harms the prudent, the middle class, and our senior citizens who tend to keep their savings in conservative interest-bearing accounts. This was a point made quite well by Allan Sloan in the Washington Post today ("Uncle Sam's gift to the saver: Less money" ). Of course, the low interest rates are fueling the stock market and further enriching the investing class.
Conversely, Obama's executive orders, personnel choices - which include placing union leaders in key positions throughout government - policies, threats, and the prospect of higher costs for each employee hired are leading businesses to lay off people and refrain from hiring any more. What businesses would hire anyone knowing that each hire will be far more expensive than would have been the case before Democrats (in the pocket of unions, led by a radical in President's clothing) took control of all aspects of government?
Jennifer Rubin:
The Wall Street Journal reports that to a greater degree than in past recessions, employers are slow to hire workers (harboring "nagging doubts about the durability of the upturn"), suggesting that record unemployment will persist. Aside from fear that the economic recovery is fragile, one significant reason for the aversion to hiring is the Obama agenda:
Businesses also face uncertainty about the potential costs of regulatory moves - such as an expansion of health care and climate legislation - that could drive up costs. And many employers have learned how to produce more with a smaller number of people than they previously thought possible.
The final result? Profits are doing relatively well because the work force is being cut to the bone and labor costs are falling. Productivity soars on the backs of the remaining employees. Furthermore, many jobs are being outsourced to friendlier countries; people are being replaced by machines. But to reiterate, profits are doing well for now. And the stock market is strong.
Irony of ironies: Obama's wayward policies are hurting those he professes to want to help and helping those he clearly wants to hurt.
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