Posted by JM Ashby
No, not really.
Its a wonderful day in the neighborhood for american corporations.
Surely, when Caterpillar and Morgan Stanley are swimming in lucre, life must be getting more wonderful for everyone.
Alas, no. Word that American businesses sucked in profits at an annualized pace of $1.66 trillion between July and September is certainly better than the alternative. Ditto, the wholly expected news that the economy grew faster than an initially reported 2 percent annual rate, reaching a still modest 2.5 percent. But none of this has translated into the sort of job growth that will be required to cut into an unemployment rate stuck at 9.6 percent.
American corporations are on pace to reap $1.66 trillion dollars in profits this year, and Corporate America is already sitting on piles of cash and refusing to expand or hire.
But if you believe the Republicans, we need to keep the Bush Tax Cuts inplace so big business will start hiring again. If the rich get to keep their taxes 3% lower, there will be a sudden firesale in hiring and all will be good and right in the world. Does anyone really believe that?
The news that the economy grew at a rate of 2.5% rather than the expected 2% is welcome, but unfortunately it is growing for the wrong people.