The “Trickle Down” Should Be Coming Soon, Right??

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Corporate Profits ‘Near-Historic’ In Second Quarter, Thanks To Cost-Cutting

The Huffington Post |  William Alden First Posted: 10- 4-10 09:07 AM   |   Updated: 10- 4-10 09:16 AM

…The robust state of corporate profits presents a paradox: companies won’t spend their money until the economy improves, but the economy won’t improve until they spend their money. An increase in hiring, for example, would help drive a recovery. The New York Times reports this “chicken-and-egg” phenomenon, noting that near-zero interest rates have encouraged companies to borrow money and simply hoard it because, as the NYT puts it, “they can.”

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  • sunnyborderblue

    the learning curve is pretty flat in corporate america. small business will drive this economic recovery in my opinion.

  • admin

    i think absolutely that will be the case. i just continue to be amazed at why some folks think that by giving MORE money to the richest 1-2% of people in this country, it will somehow help the middle class.

    i was witness to a conversation recently in where one party was complaining about the economic stimulus package. he was saying that if they really wanted to stimulate the economy, they should have given the money to rich people, because they would have gone out and bought fancy cars, boats, etc…

    the problem…well…one of the problems…with that line of thinking is, who did he think it is that owns the dealerships that sell those fancy cars, boats, and such?? or runs the high-priced restaurants? as the article supports, any money invested on that level right now will STAY on that level.

    and i’m not against people having wealth…i’d love to be one when i grow up…lol…but the line of thinking that by somehow giving them MORE money it will somehow help folks in the middle-class is just flawed, in my opinion.

    if you REALLY want to see it reinvested into the economy, send us folks in the middle-class a big check…we’ll have it spent in a few weeks. 🙂

  • sunnyborderblue

    couldn’t agree more. though the stimulus package was not perfect, by any means, i would hate to see where our economy would stand at this point had it not passed. i will say, however, that i worry about letting the bush tax cuts expire right now. normally, i would welcome it but am afraid it would have a huge psychological impact on the recovery. maybe i’m crazy, really, maybe i am…….but that worries me some. what do you think?

    is there still a middle class????? 🙂