Comments on: Diagnosis: A Bad Loop http://jaredbernsteinblog.com/diagnosis-a-bad-loop/ Facts, Thoughts, and Commentary Fri, 24 May 2013 19:46:27 +0000 hourly 1 By: Kevin http://jaredbernsteinblog.com/diagnosis-a-bad-loop/#comment-259734 Kevin Fri, 03 Aug 2012 16:40:19 +0000 http://jaredbernsteinblog.com/?p=6045#comment-259734 Of course you’re correct regarding the feedback loop. Why can’t the media ask one of these employers or economists for a specific example of a company with sufficient demand that requires it to add staff, yet not doing so because some bad macro-event may take place sometime in the future? Companies have no problem shredding workers when business (demand) drops – so it is counter-intuitive for them to fail to hire to meet higher demand. If demand was sufficient but there was a fear of the cliff or Europe, wouldn’t temp services be booming now?
This repeated mis-information spewed by the media, who are acting as stenographers to their sources instead of informers to their audience, has a terrible effect on the knowledge of the electorate.
I’m the CFO of a manufacturing company employing 300+ people. If our sales are expected to be impacted by some such event but meanwhile we can’t meet demand with existing staff, we’d bring in temporary help or hire & then fire if the predicted pain came to pass. We would not sit still and pass up business today for a potentiality tomorrow.

]]> By: Michael http://jaredbernsteinblog.com/diagnosis-a-bad-loop/#comment-259708 Michael Fri, 03 Aug 2012 15:48:58 +0000 http://jaredbernsteinblog.com/?p=6045#comment-259708 Corporate profits are at record levels, and most Americans are taking it in the shorts. Sounds like the GOP is very, very happy.

]]> By: celjr http://jaredbernsteinblog.com/diagnosis-a-bad-loop/#comment-259669 celjr Fri, 03 Aug 2012 14:46:42 +0000 http://jaredbernsteinblog.com/?p=6045#comment-259669 Jared,

It is obviously a lack of demand in the economy that is causing it to lag. Austerity policies only exacerbate the problem by further reducing demand. There needs to be a focus on stimulus policies that target the middle class (such as payroll tax and further tax cuts for the middle class. We need to talk about “middle class stimulus” which may be more palatable than talking just about stimulus which many associate with quantitative easing and other policies that provide tax-payers dollars to banks.

]]> By: D. C. Sessions http://jaredbernsteinblog.com/diagnosis-a-bad-loop/#comment-259646 D. C. Sessions Fri, 03 Aug 2012 14:24:10 +0000 http://jaredbernsteinblog.com/?p=6045#comment-259646 As usual, http://en.wikipedia.org/wiki/Negative_feedback

]]>