Business Insider: rich people can't buy all the products we need to sell to have a healthy economy

[mawilson 2,133]

Apparently, they don't. US businesses have a revenue growth problem.

Because the rest of the world sucks as well. Europe is in the toilet. China has its own problems. As soon as growth picks up in other regions of the world, American companies will do very well indeed, even if domestic consumption is flat.

[Mr. Big Dog 10,747]

Because the rest of the world sucks as well. Europe is in the toilet. China has its own problems. As soon as growth picks up in other regions of the world, American companies will do very well indeed, even if domestic consumption is flat.

It's not just China. Brazil is cooling off as well. Europe won't come back for some time. Unless US consumption comes back, it's not looking good for US companies. The chickens are coming home to roost.

[mawilson 2,133]

It's not just China. Brazil is cooling off as well. Europe won't come back for some time. Unless US consumption comes back, it's not looking good for US companies. The chickens are coming home to roost.

What chickens? It's a global slowdown. All things considered, US companies have had stellar performance.

[Mr. Big Dog 10,747]

What chickens? It's a global slowdown. All things considered, US companies have had stellar performance.

Stellar performance only on profits not on revenue - read business - growth. Yes, them chickens.

[mawilson 2,133]

Stellar performance only on profits not on revenue - read business - growth. Yes, them chickens.

But how are they "coming home to roost"? Did US companies cause the global slowdown? Chickens coming home to roost means something (bad) they did is coming back to haunt them.

[Mr. Big Dog 10,747]

But how are they "coming home to roost"? Did US companies cause the global slowdown? Chickens coming home to roost means something (bad) they did is coming back to haunt them.

Go back and read the OP. Losing sight of mid- and long term success in the hunt for quarterly results. Those are the chickens that are coming home to roost.

[lostinblue 1,989]

Just another pro union hack article. Ask the hostess workers how things are working for them. What would america be like if all workers belonged to a union?Here I will start....The hostess teamster was making 120,000 per year. So let all truck drivers earn 120.000. What price will you pay for anything in a store? Why not turn it around the other way and have uaw workers make 10/hour and the poor people can buy a pickup for $5000 instead of $30.000.

[Teddy B 17,251]

Go back and read the OP. Losing sight of mid- and long term success in the hunt for quarterly results. Those are the chickens that are coming home to roost.

My company falls into this category and it's certainly by design. I have worked for this company over 20 years, they are a multi million dollar company that has always been able to turn huge profits with minimal overhead because they hired a few (3) really good employees (myself included) to run their business and paid them well. Over the last 8 years or so I've noticed a change in this philosophy that worked very well for the first 12 years I was here. I originally noticed a change in hiring philosophy for the lower end jobs, they would lose an employee or two, not replace them and squeeze everyone to produce the same amount of work, all the while freezing raises, bonuses and overtime. This has led to a bad attitude with most of the employees and it has become more difficult for management (me) to get the production out of them that we used to when they were paid well and happy.

Also two years ago one of the 3 managers became frustrated enough with the new way the company was being run that he was offered a nice job for one of our competitors, he took it. Since then they have not replaced him and myself and the other manager have had to pick up the slack. Icing on the cake, the other manager is 65 years old and is retiring to Florida next year, which leaves me as the only standing manager. There is no one imside the company with the knowledge or skill to take a managerial position because the company has purposely held people back to keep pay down. Needless to say, next year and the next few years should be very interesting here.

They're still making money hand over fist, they send their kids to the most expensive colleges in the country and live in the most expensive towns in the state, but at what final cost?

[one...two...tree 2,762]

Just another pro union hack article.

Read the OP, or perhaps have someone read it for you.

[james&olya 1,121]

Many of these pro-corporation 1%ers could benefit from doing some history reading. We are not there yet but if they manage to keep driving things the direction they have thus far there will eventually be a major 'correction'! Hopefully it will be sooner and will be democratically driven. If later it is more likely to be abrupt and violent. You cannot keep slicing the pie giving ever larger pieces for the few and just crumbs for the many! They can rant all they want about 'socialism' and the evils of 'redistribution' but the history of modern civilizations teaches that real power belongs to the people. Whatever encourages the middle class to grow and prosper stabilizes society. Labor unions are probably a necessary tool for that. Ever-widening income disparity is de-stabilizing. Try taking away the social safety net and see what happens. It would not be pretty!

[one...two...tree 2,762]

Many of these pro-corporation 1%ers could benefit from doing some history reading. We are not there yet but if they manage to keep driving things the direction they have thus far there will eventually be a major 'correction'! Hopefully it will be sooner and will be democratically driven. If later it is more likely to be abrupt and violent. You cannot keep slicing the pie giving ever larger pieces for the few and just crumbs for the many! They can rant all they want about 'socialism' and the evils of 'redistribution' but the history of modern civilizations teaches that real power belongs to the people. Whatever encourages the middle class to grow and prosper stabilizes society. Labor unions are probably a necessary tool for that. Ever-widening income disparity is de-stabilizing. Try taking away the social safety net and see what happens. It would not be pretty!

Labor unions were, for the most part, an inoculation against socialism in this country. Many people fought hard and died so that we could have weekends, holidays, overtime, vacations, health insurance, sick pay, worker's comp, safe working conditions, etc. People who are anti-union have no idea how much they are direct beneficiaries of the fights labor unions have fought and won for the benefit of all workers.

[Teddy B 17,251]

Many of these pro-corporation 1%ers could benefit from doing some history reading. We are not there yet but if they manage to keep driving things the direction they have thus far there will eventually be a major 'correction'! Hopefully it will be sooner and will be democratically driven. If later it is more likely to be abrupt and violent. You cannot keep slicing the pie giving ever larger pieces for the few and just crumbs for the many! They can rant all they want about 'socialism' and the evils of 'redistribution' but the history of modern civilizations teaches that real power belongs to the people. Whatever encourages the middle class to grow and prosper stabilizes society. Labor unions are probably a necessary tool for that. Ever-widening income disparity is de-stabilizing. Try taking away the social safety net and see what happens. It would not be pretty!

I'm not a big fan of current day unions, but at one time they did serve a great purpose and they may be needed again on a very large scale.

I used to tell my buddies that welfare was crime prevention, they thought I was crazy.

[I AM NOT THAT GUY 5,715]

Labor unions were, for the most part, an inoculation against socialism in this country.

Don't you ever study history? Unions are a precursor of socialism.

[mawilson 2,133]

You cannot keep slicing the pie giving ever larger pieces for the few and just crumbs for the many!

It's not your "pie" to "slice". If I made $1m or $10m this year, the money is mine and mine alone - not part of some imaginary pie that needs to be shared with the poor. We don't add up my earnings and your earnings and some poor schmuck's earnings and then redistribute it in a way that Comrade Obama sees fit. That's not how capitalism works. We all pay taxes (or at least some of us do) which pay for some safety nets, but that's about it.

[james&olya 1,121]

the money is mine and mine alone -

Ah, but the rules for how our version of capitalism are to work belong not just to you and your wealthy friends but to everybody equally. We get to change those rules if we want and maybe you will not be deemed to have 'earned' your millions! Taxes are the principal means there. Your bill for those safety nets, as well as a lot of other things we decide collectively to invest in, is determined through legislation. You do believe in paying your bills, I hope!