If the Stock Market Is So Up, Why Are Jobs So Down?

Keeping it Honest: The new ECONOMIC reality, What’s Jobs got to do with it? “When the Stock Market zigs and zags its way to a 12 percent loss during the past three weeks, wiping out $2.5 trillion in wealth”, it was clearly sending a message. But what, exactly, has the market been telling us? The most obvious conclusion is that it has absolutely nothing to do with creating American jobs! If market was truly concerned about the inability of the U.S. government to deal with its budget, there should have been a spike in interest rates as bond investors became more nervous about the continued flood of government debt and the increase risk that they may not get their money back. But the Wall Street Market has become nothing more than a Las Vegas casino game of winning financial profits based upon paper shuffles that is not based upon actual productivity or company growth to create new jobs to produce something!
Therefore, the New economic and political reality is The BIG DISCONNECT! As the drama of the past few weeks has affirmed, while the national news and political pundits report that the major parties differ on how to cut the debt, it is almost impossible to find any politician on either side that is willing to endorse a big push in public investment and continued high deficits to create jobs in America. It doesn’t matter that interest rates is so low make it a superb time for the government to borrow or the fact that the bond market has made clear that it doesn’t think we’re Greece! However, the new ECONOMIC reality is the Stock Market has nothing to do with job creation! No one in Washington seems to listen.

She's summed it up very nicely.
One does wonder how the market increases if the economy is floundering and unemployment is so high.
Someone certainly has enough money to continue to drive up markets.On what basis do these companies continue to make profits.Has the decrease in employes and the no longer paying of benefits given these companies more money to invest.Also are these companies selling the same or more goods or even less goods at higher prices because there are enough people that can afford to but..One can often make a profit by selling more goods at reduced prices.
There is no doubt the big investment firms,insurance companies,and the banks are not loosing money in spite of so called bank failures.And never forget the Fed and its infernal machinations.

The stock market is suppose to predict the expected profits 6 months or so from now.
It could end up being a real crap shoot,there can be creative booking,and there may be great speculation.
Penny stocks has been good because this is where the small investor can try his hand.But the big investors with their research already are assured of their investments here.
Wall street is corrupt.Greed or the love of money is connatural with some and if they have the talent for this then they will do well or possibly poorly as the banks did poorly because of their greed and fractional banking.The greedy are willing to take great risks with whatever money is available.All thought all was well.Greenspan was wrong but this could have been intentional.And are more people borrowing to buy homes with irresponsible lending practices still going at Freddie and Mac and banks.
Do these companies use the monies of investors to play the market?
In any case the market has become the jewl of a few.How long they can do well is ultimately based on sales and future sales predictions.They have either found markets in other countries who have left,pay lower wages in many places and profit from this.
Perhaps it is downsizing realizing they never needed these employes and instead of working their usual 4 hour day they must now give 8 hours of productivity.
Perhaps the unemployed never bought these goods to begin with.
In any case it sure looks suspicious but maybe it's not.If it is based on greed however it will collapse.

Business and investors in America have forgoten a most important rule of success , You dont kill your market !! Yes you make quick profits by sending jobs to slave labor countries like China and India but what do you get in the end ? Nothing . Americans have been the largest consumers in the world but soon that will be no more .You see when you take away the jobs you undercut yourself . It may take a while but soon it will happen . Just look around you at what is going on now . China and India have an industral base so they dont need to buy big ticket items from the US . Also they have large agricultural areas so that food stuffs are not needed . With more American workers being unemployed everyday the buying power decreases and with this the profits . Sure in the short term you can cut lbor costs by reducing labor force or outsourcing jobs but to what end ? The Republicans talk about how bad the unions are . But then if you take the time to look at the big picture as they say you will find that as the unions deminish so goes the economy . becvause of unions companies paid higher wages and offered benefits in hopes of employees not going union . This was a more profitable method than what we are doing today . As we cut the bottom of the ladder on wages we weaken the top rungs . It is not the rich who create jobs but the middle class workers who purchase with their pay that creates wealth . Look at our history and you will see that when we had low wages and sweatshops there was almost no money in the economy and the wealthy were limited to a few families like the Vanderbuilts and Rockafellers . But when we stated to pay higher wages our economy grew . How do you think Disney , RCA, Standard Oil and other big companies got so big ? It wasnt because of investors moving money from company to company or companies outsourcing . It was because there was more jobs and more people workig to buy and grow the economy . Using Disney for example : They charge $85 a day for admission . If you are only making $10 an hour and have a family of 3 you cant afford to go there because you need to watch every penny . But if you make $ 20 an hour and have a family of 3 you have more disposable money so you might just take that vacation to Florida and go to Disney . It may not be a week but still there would be that one day . also if your only making $10 an hour with a family you pay no taxes after deductions but at $20 you pay something . And this helps reduce our deficit much more than spending cuts . Yes the goverment needs to control spending but they also need to control the exporting of jobs before we are a third world country . And Americans need to purchase more American made items . You dont need to cut out buying imports just buy more domestic . As they say the job you save may be yours .

I've heard that Washington is nothing more than Hollywood for ugly people.

Sounds very British

This situation will not only continue, it will become a greater problem in the future. The problem is merely one of supply and demand; we have a rapidly increasing population, particularly from immigration, legal and illegal -- as does the world in general (more from increased births and longevity in the third world). AND, even as this increases consumer demand for products and services, the labor resources needed to produce those goods and services, for each unit of those goods and services produced, is SHRINKING. We will either need to reduce population growth, or we will TRULY become a world of growing welfare states, and/or violent unrest.

Many of those hard working Americans are also investors. You are saying people that worked hard and saved are not entitled to keep it. Class warfare is destructive. On the other hand you say the poor need to keep up with their social networks. So how poor can they be, it takes money to buy those phones and keep them going. By the way, aren't you biting the hand that feeds you? Corporate America.

Hi Susanne, Your thoughts are certainly right on, in every respect. If only you could require the right people to read them perhaps life would get a lot better for the man in the street(not Wall Street) Thanks for your very logical insights.

Sincerely,

Jack Walsh