economy or what???

Discussion in 'General Industry Discussions' started by Tim Louis, Apr 8, 2005.

  1. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,603

    Because in the dynamics of the U.S. economy, it requires X number of dollars to run the government. (don't give me the crap about cutting costs, it ain't gonna happen) When the rich are given cuts, ultimately the lost revenue are passed down to to the middle class in the form of increased taxes, higher charges for services, increased deficits and the like. The mess social security is in now is due to the administration's use of the funds to supplement income tax revenue

    Thank God our House of Representatives is helping Paris Hilton maximize her inheritance.
     
  2. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    You didn't get a tax cut? You pay more for services then anyone else?

    How are you supporting the government more then the rich?

    The rich make more money and pay more in taxes. They also spend more and generate more sales tax. It isn't that the middle class guy is getting cheated, it's just that he doesn't make enough to carry his weight so he has to pay a little higher percentage of his income. He still isn't carrying anywhere near the weight that the rich guy is, so why complain. I happy paying my taxes, and would complain more on the local level then the national level. Property tax, sales tax, etc. is a much bigger issue to me then what percnetage of my net earnings are going to the goverment.

    Social security is a whole new ball game. There is much better ways to control spending besides making the rich guy pay more of the burden. Social security is loss only because the government can not pay back the money borrowed. The money is still there and was never taken, but borrowed against. Some day when we come to realize that we can not afford foreign welfare (just to name one) anymore maybe we will start to help ourselves and pay some of that money back. The government can do it, but they are just like the middle class guy that has to buy the big house and fancy cars even though he can not afford it. Soon he realizes that to survive he has to rethink his lifestyle. The government will realize this someday and stop spending more then it makes.

    Just like we were going to run out of oil in 20 years back when Reagan was in office. Well in 3 years it will have been 20 years. Sure some day we will run out, but we will solve that problem before it happens, just like we will solve social security. People need to stop believing the scare tactics and politics and believe that we are the best country in the world and if anyone will survive on this planet it will be us.

    What we need to do is take welfare that is being paid to U.S citizens and put them to work performing some of tax paying jobs. Like FDR did during the depression were he had work camps for the needy. I understand that many jobs are skilled jobs, but I don't know of anyone that can't hold a stop sign on road construction crews, or fill some pot holes with asphalt. Maybe put these guys to work at small business that can't afford employee but could generate a little more tax revenue if they had some help.

    Or maybe we can raise the amount rich folks pay and let them pay the way for everyones future. If you think overseas jobs are a problem now, just go raise taxes on big business and see how bad things can get. They can go just about anywhere and pay less tax, but you want them to pay more. Which comes to my next conclusion, if anyone isn't happy with things in this country (no one in particular) then there are hundreds of other countries to choose from.

    Good luck, and have a nice day!
     
  3. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,603

    Don't get me wrong; I'm not necessarily saying to soak the rich. What I am saying is that spending is the problem, not revenue. Unfortunately, the republicans have pr oven, through the years, to be bigger spenders than the democrats. You don't get this from the right wing spin-lines, but it's a provable fact nonetheless. The demos tend to support person entitlement/welfare programs. The republicans tend to support corporate entitlement/welfare program which, in the final analysis, is much more expensive. As a businessman, you'd never decrease revenue while increasing spending. Yet this administration has this mindless policy. And soon the chickens will come home to roost (if history is an indicator, it will be on the heads of the working class) You are dead on the money with your comments on social security. They have borrowed the money and don't want to pay it back.
    I want to comment on your equating disagreement with Bush's tax policy with being a low paid low net worth individuals. You could possibly be addressing people who bought several hundred shares of Cisco Systems in the early 90's and sold just before the tech bubble burst in 2000 or retired Engineers and CPA's who have paid the max into the social security system for the last 20 years. You don't necessarily have to be an unwavering republican to be well heeled.
     
  4. Remsen1

    Remsen1 LawnSite Bronze Member
    Posts: 1,020

    Here is a good sign to all of you who think the economy is doing great.

    DETROIT (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) on Tuesday posted a first-quarter net loss of $1.10 billion, its worst result since the industrial icon skirted bankruptcy in 1992, due to weaker U.S. sales and growing costs for employee health care and raw materials to build cars.

    The world's largest automaker, which alarmed the markets last month when it slashed its outlook, said its automotive operations lost $1.98 billion in the quarter, with a loss in North America alone of $1.56 billion.

    The automaker also withdrew its earnings and cash flow forecast for the 2005 calendar year. Last month, GM cut its outlook for the year to a profit in the range of $1 to $2 per share, and analysts expect GM to earn a profit of 61 cents per share this year, according to Reuters Estimates.

    GM had a cash outflow of $4.7 billion in the first quarter, including $1.7 billion for job cuts in Europe and a payout to Fiat SpA (FIA.MI: Quote, Profile, Research) to dissolve a partnership with the Italian automaker.

    "The lack of 2005 guidance will alarm some," JP Morgan analyst Himanshu Patel said in a research note.

    GM may be withholding a forecast because it is working with the United Auto Workers union to try to cut health-care costs, and "during this politically-sensitive time, it will likely want to keep its cards close to its chest," Patel said.

    GM said the first-quarter loss amounted to $1.91 per share and included several one-time items. In the first quarter last year, GM earned a profit of $1.2 billion, or $2.12 per share.

    The loss was the biggest since GM lost $21 billion in the first quarter of 1992, when changes in accounting procedures required companies to include health-care costs in earnings.
     
  5. lawnguyland

    lawnguyland LawnSite Bronze Member
    Posts: 1,108

    Core inflation up big time today
     
  6. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,603

    In my opinion investors in either small caps or large caps need to remain extremely cautious. Recently, gains in the market are on light turnover, but there is a disturbing trend of rising volume on down days. In short, the institutions and big investors are buying without much conviction, but are heavy-handed when it comes to selling. Looks like all industry groups are hit with high volume on downs days. As lawnguyland said, core inflation rate is the most since 2002 and not just due to energy cost. Real wages are falling and retail sales for March were poor and may be worse in April. My guess is oil is going to $70+ a barrel in the near term. You may listen to the right wing spin doctors on how great the economy is because of the bush tax cuts but if you're an investor (in stocks) it's a fools game to be married to one side of the market becuse of personal philosophy. The market doesn't care what you believe, how positive your attitude is, or who you voted for.
     
  7. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

     
  8. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205





    All this tells me is that GM has some real poor management.
    Ford's earnings on the other hand are up............
     
  9. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,603

    It never ceases to amaze me how you obvious right wingers result to name calling and put downs when someone even hints they oppose your beliefs . Listen to the right wing spin doctors and see what I mean. Disagee and they will call you the "L" word. Truth of the matter, I was giving my take on the overall market direction (dow s&p 500, s&p600). As an investor in the stock market for several years, my greatest discovery was that I must study general market conditions, to size it up to be able to anticipate probabilities. In short, I learned that I had to work for my money. If oil goes to $70 I'm right, if it doesn't, I'm wrong. I currently hold xmo, crzo, pog, bpt. and have since early fall because of the increases in global demand for oil. Demand drives price. For your information, I use a variety of fundamental and technical indicators. The game taught me the game. As Jesse Livermore said, "A man must believe in himself and his judgement if he expects to make a living at this game"
     
  10. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,603



    Reuters
    Ford Profit Drops 38 Percent
    Wednesday April 20, 6:08 pm ET


    DETROIT (Reuters) - Ford Motor Co. (NYSE:F - News) on Wednesday posted a 38 percent drop in first-quarter earnings, pressured by falling U.S. sales and rising costs, and further cut its North American production to reduce bloated inventories of unsold vehicles.
     

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