Strong earnings aren’t translating into jobs yet

[Elmore Furth]

Companies are pulling in big profits but that isn't translating into decreased unemployment. Where is the 'trickle down?' I'm starting to lose my faith in voodoo economics.

The economy has done better for the past 50 years under Democratic presidents -- and that isn't any voodoo.

http://www.slate.com/id/2199810

NEW YORK -

Investors have been buying stocks for nearly 14 months on the assumption that a rebounding economy will bring higher earnings and lower unemployment. Companies' first-quarter profit reports have been upbeat, and the government released promising numbers showing employers added 162,000 jobs in March. So, many investors may now be looking for stronger job growth.

The hiring will come, but only gradually, analysts say. The concern in the market is that investors may be so impressed by earnings they'll get overconfident about employment. And that could mean disappointment if the Labor Department's April jobs report two weeks from now falls short of expectations. Major stock indexes are already bouncing along 18-month highs and overdue for a retreat, most analysts say.

Unemployment sits at 9.7 percent, compared with 10.1 percent in October. Investors believe a sustained increase in job growth will be the ultimate proof that the economy is healing.

Analysts polled by Thomson Reuters now forecast that the companies that make up the S&P 500 will earn about $83 per share in 2010. At the start of the year, analysts were calling for earnings to rise to about $77.50 in 2010 from about $62 in 2009.

Strong earnings aren’t translating into jobs yet

[Oregone]

1. My company just got really efficient and restructured to survive

Theyd never start hiring again in the near future at this point

[stray cat]

2. Maybe a few companies but not many

[BlooInBloo]

3. Seattleland market for programmers has turned from meh to pretty good in the last few months...

Hopefully that trend is indicative of what's coming for other fields and other geographies.

[Possumpoint]

4. A Harsh Reality Appears

IMHO many jobs are gone forever. Companies have downsized and increased profits. Other companies are gone overseas and will not return. Whole industries are no longer profitable in the USA. In the absence of being profitable what does the future hold for this country, socialism?

What do we do if it turns out we have many more workers then jobs?

[proudohioan]

5. "if we have many more workers than jobs".....

"IF"?????? IMO we're already there! Oh, industries are profitable enough, just not "competitive globally..." translation: not making CEO's and shareholers nearly enough MONEY!!!!!!

And WTF is wrong with socialism?

[Possumpoint]

6. You Want Socialism?

Move to Europe, Russia, or some other communistic country. I want nothing to do with the high taxes and make work mentality.

[Name removed]

7. Deleted message

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[Possumpoint]

8. Last Time I Looked

This is Democratic Underground, not Socialism inc.

[Commie Pinko Dirtbag]

10. Amazingly, favorable discussion of socialistic policies is both admissible and very frequent here.

Does that bother you?

[Name removed]

11. Deleted message

Message removed by moderator. Click here to review the message board rules.

[notesdev]

16. You could be forgiven

for mistaking it as the latter. There are even people here who proudly declare their adherence to Communism.

[The Northerner]

13. Become France? Not if the current system survives

In addition, I don't think the government will be capable of owning & operating any other means of productions if it can't continue to repay/defer its debts

[Commie Pinko Dirtbag]

9. "Move to Europe, Russia, or some other communistic country"

Cardinals Shirt Guy? Is that you?

[HughBeaumont]

18. What's IGNORED spouting?

The usual know-nothing bullshit?

Of course, that could be ANY of the corporate water-carriers I gots floating in the Red-X Toilet.

"Hey, let's defend unbridled corporatism! SUCH an awesome system for the populace! You just gotta work really really really REALLY hard and kiss the right ass! That's not a problem, is it? You know, unless you're LAZY, like all those poor people!"

You don't want to think "the Big Tent" is too big, but sorry, I have nothing in common with Democrats who are economic Reaganite stooges.

[Commie Pinko Dirtbag]

19. I quoted as-is. Log off temporarily if you don't believe me.

I did a double-take myself.

[Name removed]

12. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Fumesucker]

15. We already have the high taxes..

It's just that they go to pay for half the military spending on the planet that benefits the economic elites rather than things that benefit the ordinary American.

[pscot]

14. Quit complaining

It should be enough for you to know your betters on Wall Street are doing sensationaly well. If we're lucky, maybe they'll condescend to let a few crumbs fall from their table.

[Dawgs]

17. My wife says that she's seeing job openings all over the place.

She's an HR Director in Georgia for Credit Unions.