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[Oreo]

The Stock Market means nothing. Sorry to say. but just because stocks are on the rise again doesnt mean jack about a company hiring more people and the unemployment rate going down. Stocks rising just means that those who had large shares of them, are getting richer.

Case in point, Western NY where i live. There is now almost a 25% unemployment rate. The market is soooo saturated with people in dire need of a job that companies can basically hire someone for nothing. Not to mention the fact that they can pick and choose. There is at least 50-100 people applying for the same job if not more.

I have been applying for jobs for over 9 months. I have years of experience in the field that i am applying for and i still have yet to get a call back. No i am not talking about Tech jobs either. I am talking about local jobs at even something as small as a coffee house or a restaurant in which i was a cook for over 6 years of my life.

So just because the stock market is making a come back means absolutely nothing to any single person who is without a job. We dont own stock and therefor we are not making any money by the upswing of stock prices.

Yeah encourage people to spend money, especially when THEY DONT HAVE ANY MONEY TO SPEND. Exactly how does that work Oreo? How can you spend money when you are not making any money in the first place? I would really love to know cause it is something that has baffled me for almost 3 years now.

The US Gov't just did a Cash for Clunkers program where if you have a junk car you could trade it in and get $4500 in trade in value. That went for 5 months before over $1 Billion was spent of federal money. That is a lot of money changing hands right there, yet the economy here is still not in a upswing even after so many people bought new cars.

People are dipping into life savings, retirement funds and so much more just to pay monthly bills. How do you really expect these people to go out and buy things like TV's and XBOX's and PC's when they are struggling to make monthly rent and other living expenses. Sorry but it just aint happening here. Maybe in the UK but in the USA there is FAR more people out on luck right now than are in luck when it comes to money.

You give people money, or you lower the prices of stuff. You have to spend money or the economy will remain stagnant forever, i don't know how either, but it's a fact. It comes down to something very simple, as soon as people spend money.. we come out of the recession - because everyone gets better off.

My business a level and geography a level has been this argument for the past 2 weeks, how to spend money without money..

 

[S0ULphIRE]

donated.

 

[KSoD]

Okay Oreo now here is the thing. If you lower the cost of goods, it will raise the cost for these companies to buy said goods. In return it will force them to either A. lower their workforce to make up for the higher cost to obtain goods or B. not sell as many goods.

From a economics stand point it is only effective for a company to stay in business if they are making money. If they lower the cost of goods, it will cost them more to stay in business, which in return force them to fire people to make up for the lost profit. Which then puts more people out of work with no money to spend and raises the unemployment rate.

No company, not even the ones that make the most like Walmart, are going to lower the cost of goods if they are not going to make as much of a profit. So either way you look at it there is a no win situation there. Lower costs means more people out of work, keeps costs the same people are not buying as many luxuries.

I can tell you that Walmart is going through a major restructuring of their management workforce right now so that they can lower the cost to do business. This is coming from a company that made over $250 Billion last year. More than any other company in the world as far as i remember.

They are going to less people on salary and more hourly as it will save them millions of dollars per year to pay people by the hour instead of a flat salary. At the same time that means that many people who have been salary and making $70K or more per year are now going to have to step down to hourly and loss up to $20K or more just to keep their job.

This coming from the company that made $250 Billion last year. Even they are looking to cut operating costs so that they can keep their profits up.

Yeah lower the cost of goods will help people be lax and open their wallets more. But at the same time it has a adverse effect in which companies have to spend more just to stay in business. I dont want to derail this much more cause this is not about economics.

Sorry for turning this into a economics discussion. I will let this thread continue to its regularly scheduled programming.

 

[Trotter]

Much appreciated.

If you want something that pays minimum wage/part time, it's like 5-6 people applying per job. If it is a good job, like at M&M/Mars, Duracell, or Olin, you get 500-1000 applying for it. It's plain ugly and doesn't look to be getting much better anytime soon, at least not here.

 

[S0ULphIRE]

I know the job I got (which is pretty much minimum wage + some extra unpaid hours occasionally) there were about 150 applications.

 

[Oreo]

Okay Oreo now here is the thing. If you lower the cost of goods, it will raise the cost for these companies to buy said goods. In return it will force them to either A. lower their workforce to make up for the higher cost to obtain goods or B. not sell as many goods.

From a economics stand point it is only effective for a company to stay in business if they are making money. If they lower the cost of goods, it will cost them more to stay in business, which in return force them to fire people to make up for the lost profit. Which then puts more people out of work with no money to spend and raises the unemployment rate.

No company, not even the ones that make the most like Walmart, are going to lower the cost of goods if they are not going to make as much of a profit. So either way you look at it there is a no win situation there. Lower costs means more people out of work, keeps costs the same people are not buying as many luxuries.

I can tell you that Walmart is going through a major restructuring of their management workforce right now so that they can lower the cost to do business. This is coming from a company that made over $250 Billion last year. More than any other company in the world as far as i remember.

They are going to less people on salary and more hourly as it will save them millions of dollars per year to pay people by the hour instead of a flat salary. At the same time that means that many people who have been salary and making $70K or more per year are now going to have to step down to hourly and loss up to $20K or more just to keep their job.

This coming from the company that made $250 Billion last year. Even they are looking to cut operating costs so that they can keep their profits up.

Yeah lower the cost of goods will help people be lax and open their wallets more. But at the same time it has a adverse effect in which companies have to spend more just to stay in business. I dont want to derail this much more cause this is not about economics.

Sorry for turning this into a economics discussion. I will let this thread continue to its regularly scheduled programming.

By lower the cost, i mean subsidies to the manufactures for making the goods from the Gov, so the prices are cheeper for people. Thats why we should all cut military budgets, so they can afford to do such things.

 

[meat_helmet]

Donated. Not much, but hope it helps mate.

 

[james.wired]

The recession REALLY IS THAT BAD. I was talking to a friend in the states and he said he can't even get a job flipping burgers at any fast food place, that they have so many people walking in dropping in applications they told him he can no longer apply in person, that it has to be done online only. THAT is bad. All these kids graduating college are going to be smacked in the face by the economy in which my parents' generation created for us today.

Back to OT.

 

[veg1992]

People keep saying that by the time I finish college, the recession should be over. Hopefully, it's true.

 

[Luke]

Well it seems pretty good for Canadians right now...There is not a lot of decent paying jobs, but there is a lot of jobs for minimum wage. Pretty much everyone i know are doing quite well. I am sorry for you guys in the states.