Another running dog capitalist
Another running dog capitalist
I wonder what the Communist Party USA, which loves my book, would have to say about this:
Does President Barack Obama deserve credit for the fact that corporate profits have risen faster under him than during any other 18-month period since the 1920s?
“The better question is whether he wants the credit,” said Douglas Holtz-Eakin, who was an economic adviser to Republican Sen. John McCain’s 2008 presidential campaign. “Obama sounds a lot like he wants corporations to be less profitable.”
Profits have surged 62 percent from the start of 2009 to mid-2010, according to the Commerce Department. That is faster than any other year and a half in the Fabulous ’50s, the Go-Go ’60s or the booms under Presidents Ronald Reagan and Bill Clinton.
Here's why that's not doing anyone other than a handful of billionaires much good right now:
Holtz-Eakin said that the profit growth has been driven not by revenue gains but by businesses cutting workers to boost productivity. He conceded, however, this was also the story during Bush’s “jobless recovery” and acknowledged that Obama probably did deserve some credit for stabilizing the chaotic financial system he inherited in 2009.
Nonetheless, noncorporate business has not thrived under Obama: Profits from those mostly smaller businesses are basically flat for the past 18 months, far worse than the gain under Bush and most other presidents just after recessions.
At the risk of sounding like David Broder, small business reform seems like the perfect area where Democrats and Republicans could find common ground -- I know there have been some small moves in that direction, but not enough. I think the Democrats miss a real opportunity by not looking at common sense regulatory reforms, while Republicans seem locked into protecting Wall Street fat cats along with Main Street. Meanwhile, we need 8 million new jobs, and the clock is ticking, people...
The new comment blocks are spiffy!!! Can we look forward to a day when the comments will be accompanied by the commenters photo? That might not be a good thing.
Will, if your IT folks are interested the comments do load at a snails pace.— bird11
Profits are there because they are not spending money becuz they are terrified by this Congress and this President.- "Nonetheless, noncorporate business has not thrived under Obama: Profits from those mostly smaller businesses are basically flat for the past 18 months" ...it is what we have been saying all along - HCR, cap & trade, repeal of the Bush tax cuts over $250,000 - are all killers for small business. The bigger corporations have more wiggle room because they are global and can move their pieces elsewhere. The machine shop owner in Berks Co. is stuck trying to figure out how to survive with the government pounding him with more and more taxes and regulations.— bird11
- Or as the WSJ puts it: "Mrs. Pelosi's real problem is with the American people. They understand what Democrats have achieved, and they dislike it. They thought they had elected a President who would focus on the economy, but instead they got the most far-reaching liberal social policies since the 1960s. Those policies have frightened business and produced a capital and hiring strike".
America does not need "small business reform". American Small Business needs "government regulation and tax reform".— Mr. Smith
Wow, that sound you hear off in the distance is the collective wingnut heads exploding because yet another one of their false memes has been proven wrong again. Hey, if nothing else, the President is still black so you can hate still hate him and everything he stands for.— Les Ismore- These comments load extremely slow, probably the worst I have ever seen.— Les Ismore
- Which false meme has been proven wrong causing our heads to explode. Sorry, the ESP powers are off a tad this morning Les.
- How about this one; "“Obama sounds a lot like he wants corporations to be less profitable.”
— Les Ismore - Things for wingnuts to remember next Tuesday.
1.) HCR has scarey death panels (except that it doesnt)
2.) HCR is a massive government takeover of the worlds finest healthcare system (except that it isnt)
3.) President Obama is shredding the Constitution (except that he hasnt)
4.) Obama raised taxes (except that he cut them)
5.) Business is stifled under this administration (never mind the record corporate earnings)
6.) The deficit is out of control (except that its decreasing and he passed the greatest deficit reduction bill in the history of mankind)
7.) Sharia law is coming (only in Pam Gellers fantasies)— Les Ismore - I dont recall ever saying i was against corporations making money, I do have an issue with corporations "rigging" the rules to the disadvantage of others though. Is that what you mean? — Les Ismore
1) Government health plans do ration, look at the cuts that are happening to Medicare Advnatage. Or look at the NHS.
2) Nope, its a trojan horse for single payer. Its built to fail as it does nothing to address costs. Costs will continue to rise as benefits shrink, mark my words.
3) Gee, he's doing alot of the same things as Bush, who was criticized for shredding the Constitution.
4) The admins legal team is defending the hc penalty as legal under the power to tax. And if the Bush cuts are extended, then taxes were raised under him.
5) The corporate earnings are due to leverage from the loose monetary policy and layoffs. Unless you want to argue the economy's sailing smoothly under this guy.
6) That deficit reduction bill hasn't actually reduced the defict one bit, now has it?— RG- RG does not even make sense half the time and is wrong the rest.
1) As a Medicare Advantage customer, I know that the unfair subsidy I have been enjoying is gradually being removed, but that would just level the playing field and the projections for next year are that costs to the insured will drop slightly and most of the perks will be kept.
2) As much as I would prefer single payer, I think we will have the exchanges with us forever after 2014.
3) Ok, the Justice Department is following Bush policies and they are still wrong.
4) Your comment here does not even have internal logic.
5) Corporate earnings are in part due to lay-offs, but we would not want America to fall in productivity per worker, the main way we can compete with cheap labor abroad.
6) So far the Obama deficits have each been $10 billion less than the last Bush deficit--not great but still a reduction. 
Comment removed.
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