Economics 101
Why is it politicians are the last to know what is going on within their own country?
In December and as late as January, President Bush was telling the country that, even with the housing problems, our economy was strong.
Last week's headline:
Bush Sees 'Troubling Signs' for Economy
Ya think?
I wonder if he just noticed the following.
Wal-Mart will be laying off dozens of employees involved in its apparel business, which it is shutting down due to sluggish sales, and moving some jobs from Arkansas to New York.
Hurt by slow revenue growth and the popularity of social networking Web sites, Yahoo's job cuts will mark the company's biggest purge since it jettisoned 650 workers in the wake of the dot-com bust seven years ago.
Ford has slashed some 44,000 jobs since early 2006 and is offering two more rounds of buyout and early retirement packages to all 54,000 U.S. hourly workers in an effort to cut more jobs and replace workers with those making a lower wage.
On Jan. 24, reports indicate that Morgan Stanley is planning to layoff 2 percent of its workforce -- about 1,000 people.
Wireless carrier Sprint Nextel confirms on Jan. 18 that it will layoff 4,000 more employees, after cutting 5,000 employees in 2007. It will also close 125 retail locations.
General Motors will reduce labor costs by another $5 billion by 2010, mostly by cutting labor costs, the company announced on Jan. 15. Much of the reduction will come from a deal reached last year with the UAW.
On Jan. 17, Lehman Bros., the fourth-largest brokerage, announced it was going to layoff 1,300 workers in its mortgage division, which will result in a $40 million charge.
On Tuesday, the new owners of music label EMI Group -- home of the Rolling Stones, Coldplay and the Spice Girls -- said they planned to cut up to 2,000 jobs in a restructuring aimed at offsetting the impact of falling revenue from CD sales.
Cash-strapped Citigroup, hurt badly by losses from the subprime mortgage crisis, says it slashed 4,200 jobs in the fourth quarter in addition to the 17,000 layoffs announced in the spring. A top exec said that more job cuts would be on the way.
On Jan. 8, Avon Products said it will cut 2,400 jobs as part of its multiyear restructuring plan, which will cost more than originally expected and ultimately save the beauty-products maker $430 million annually.
And the list goes on and on.
President Bush is in the twilight zone by not realizing the problem. He and his advisors like good sound bites rather than the truth which might make his presidency look bad.
The list above is just the tip of the iceberg. Those businesses, along with hundreds of other businesses that are in the same situation, will have a rippling effect on our country and our economy that will affect us all in one way or another.
I assure you it won't be a good situation for any of us.
Don't think a Democrat is the answer either as their solution is to raise taxes and give the money away.
I'm not the smartest person, but when unemployment is high and wages are low who is there to pay those higher taxes?
Our country has become generous to a fault, so much so we are becoming a weak country of followers instead of the strong country of leaders we once were.
In December and as late as January, President Bush was telling the country that, even with the housing problems, our economy was strong.
Last week's headline:
Bush Sees 'Troubling Signs' for Economy
Ya think?
I wonder if he just noticed the following.
Wal-Mart will be laying off dozens of employees involved in its apparel business, which it is shutting down due to sluggish sales, and moving some jobs from Arkansas to New York.
Hurt by slow revenue growth and the popularity of social networking Web sites, Yahoo's job cuts will mark the company's biggest purge since it jettisoned 650 workers in the wake of the dot-com bust seven years ago.
Ford has slashed some 44,000 jobs since early 2006 and is offering two more rounds of buyout and early retirement packages to all 54,000 U.S. hourly workers in an effort to cut more jobs and replace workers with those making a lower wage.
On Jan. 24, reports indicate that Morgan Stanley is planning to layoff 2 percent of its workforce -- about 1,000 people.
Wireless carrier Sprint Nextel confirms on Jan. 18 that it will layoff 4,000 more employees, after cutting 5,000 employees in 2007. It will also close 125 retail locations.
General Motors will reduce labor costs by another $5 billion by 2010, mostly by cutting labor costs, the company announced on Jan. 15. Much of the reduction will come from a deal reached last year with the UAW.
On Jan. 17, Lehman Bros., the fourth-largest brokerage, announced it was going to layoff 1,300 workers in its mortgage division, which will result in a $40 million charge.
On Tuesday, the new owners of music label EMI Group -- home of the Rolling Stones, Coldplay and the Spice Girls -- said they planned to cut up to 2,000 jobs in a restructuring aimed at offsetting the impact of falling revenue from CD sales.
Cash-strapped Citigroup, hurt badly by losses from the subprime mortgage crisis, says it slashed 4,200 jobs in the fourth quarter in addition to the 17,000 layoffs announced in the spring. A top exec said that more job cuts would be on the way.
On Jan. 8, Avon Products said it will cut 2,400 jobs as part of its multiyear restructuring plan, which will cost more than originally expected and ultimately save the beauty-products maker $430 million annually.
And the list goes on and on.
President Bush is in the twilight zone by not realizing the problem. He and his advisors like good sound bites rather than the truth which might make his presidency look bad.
The list above is just the tip of the iceberg. Those businesses, along with hundreds of other businesses that are in the same situation, will have a rippling effect on our country and our economy that will affect us all in one way or another.
I assure you it won't be a good situation for any of us.
Don't think a Democrat is the answer either as their solution is to raise taxes and give the money away.
I'm not the smartest person, but when unemployment is high and wages are low who is there to pay those higher taxes?
Our country has become generous to a fault, so much so we are becoming a weak country of followers instead of the strong country of leaders we once were.
posted by Wag @ 12:00 AM
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