Dearth of Demand Seen Behind Weak Hiring

[djAdvocate]

this is my take. it has nothing to do with "uncertainty with government" that is utter rubbish. it has to do with crappy economic growth, bad credit conditions, and poor jobs outlook restraining consumption. when you get this kind of headline in the WSJ, it is time to wake up:

Dearth of Demand Seen Behind Weak Hiring

Updated: Monday, 18 Jul 2011, 11:31 AM EDT
Published : Monday, 18 Jul 2011, 11:31 AM EDT

(The Wall Street Journal) - The main reason US companies are reluctant to step up hiring was scant demand, rather than uncertainty over government policies, according to a majority of economists in a new survey published Monday in the Wall Street Journal.

"There is no demand," Paul Ashworth of Capital Economics said. "Businesses aren't confident enough, and the longer this goes on the harder it is to convince them that they should be."

In the survey, conducted July 8 to 13, 53 economists -- not all of whom answered every question -- were asked the main reason employers were not hiring more readily. Of the 51 who responded to the question, 31, or 65 percent, cited lack of demand, while 14, or 27 percent, cited uncertainty about government policy. The others said hiring overseas was more appealing.

Some executives echoed the survey's central finding.

"We're hiring a little here and there -- but it's not what it should be," Daniel Cunningham, chief executive of Long-Stanton Manufacturing of Hamilton, Ohio, said. "And it's because of the lack of demand."

Long-Stanton, which makes metal parts for the aerospace, medical and other industries, has snapped back from the recession, "but volume is still not up to where it was, or where it should be," Cunningham said.

Overall, the economists in the WSJ survey dimmed their outlooks for economic growth and for two critical gears of the stop-and-go recovery that have yet to engage -- housing and jobs.

The economists have grown gloomier about the second half of the year and marked down their forecasts from earlier ones. Nevertheless, they still expected the economy to rebound in coming months and perform better than in the disappointing first half.

Source: The Wall Street Journal

www.myfoxtampabay.com/dpps/consumer/dearth-of-demand-seen-behind-weak-hiring-dpgonc-20110718-fc_14178293

will tax cuts stimulate demand? no f(*king way. the "job creators" already have money. cash reserves at businesses are huge. what they lack is demand for their stuff.

the vicious cycle continues. lack of demand restrains growth which creates few opportunities for workers, which restrains demand. Keynsian economics in action.

[deziloooooo]

As a former head of the treasurer said on Zakarias Sunday program..it's the size of the order book that will get them to hire , and so far the order book is slim..

whether it is retail or manufacturing, they are all inter related.

I ask you, besides the food store , a fast food restaurant, when was the last time anyone just went to a mall to shop..not for anything specific, to satisfy a need, repace something.

My toaster went..was going to go out and buy a new one, still might but I have a toaster oven, really don't need a toaster..

Clothes, I live in Sout Florida..wear little, shorts , 100 % of the time, my thing is real nice golf shirts..will go to a outlet, the $65/75 ones , designer names, for $20, sometimes less....so last years colors..blue is blue, green is green..have plenty, don't dry in the dryer, hang em up, so all still look new..so no reason to go out and get more..make due.

American consumers, making due.

[djAdvocate]

Jul 18, 2011 23:53:24 GMT -5 deziloooooo said:

As a former head of the treasurer said on Zakarias Sunday program..it's the size of the order book that will get them to hire , and so far the order book is slim..

whether it is retail or manufacturing, they are all inter related.

I ask you, besides the food store , a fast food restaurant, when was the last time anyone just went to a mall to shop..not for anything specific, to satisfy a need, repace something.

My toaster went..was going to go out and buy a new one, still might but I have a toaster oven, really don't need a toaster..

Clothes, I live in Sout Florida..wear little, shorts , 100 % of the time, my thing is real nice golf shirts..will go to a outlet, the $65/75 ones , designer names, for $20, sometimes less....so last years colors..blue is blue, green is green..have plenty, don't dry in the dryer, hang em up, so all still look new..so no reason to go out and get more..make due.

American consumers, making due.

precisely. this is why the concept of aggregate demand is so very important. this is a death spiral: businesses refuse to hire because nobody is spending. this drives down aggregate disposable income which perpetuates lack of consumer demand. there is only one way to break that cycle. it is well known, and has been repeated often enough that it considered a proven method. and it is precisely the opposite of what is being discussed in congress at this time.

i am strongly considering offshoring every penny of my investment money. with minds like the ones we have in DC, we are doomed.