Markets High: Unemployment 5yr Low

[TheVictors]

Sometimes I do miss tsmith....



Kidding.

 

[Michchamp]

he would just go cut and paste some stat about federal spending, which would "disprove" everything you said.

 

[TheVictors]

he didn't understand the concept of the markets being a "leading indicator" and employment data as a "lagging" one and then called Obama "Barry" for good measure.

 

[KAWDUP]

Usually you have a link. How about this one?

http://www.bls.gov/news.release/empsit.nr0.htm

 

[zyxt9]

unemployment numbers alone don't tell the story guys, and you know it. far too many people have been removed from unemployment because they have become so dejected in job hunt that they removed themselves from the equations that get calculated, not because they found work. far too many others acquired part time jobs or jobs that pay 10k+ less than they made at their previous job.

the economy still has many issues, the biggest ones IMO are coming from the lack of small and medium sized businesses able to get funding to start or continue. those are the real drivers of the economy and until they get funded properly the economy will continue to struggle. it is very difficult today; however, because banks are under far more constraints - not that they shouldn't be, but it is making it much harder for the little guy to even try. venture capital, angel investors, etc. are only willing to do their part after a company has traction, which is very difficult to achieve when you cannot get the funds necessary to generate income for the business.

is it impossible, no...nothing is impossible. incredibly difficult? ABSOLUTELY!

just because you guys have cush jobs and making a good living doesn't mean the economy is in good condition. as for the stock market, if that was a legit barometer then there would be far more positivity about the economy. the stocks have done nothing for the 3.5 million who are forgotten because they are no longer counted as employed nor unemployed.

are things getting better? yes, slowly. unfortunately there are many obstacles to still overcome and somehow the government, banks, big money people and organizations need to figure out a way to help the little guy get traction and develop their business so they can grow and employ more people, and pay them a fair wage instead of below it. and i've got news, a mandatory minimum wage increase does not help develop the SMB world, it does quite the opposite.

 

[Thumb]

The economy didn't kill small business, and neither did minimum wage increases.

The big box stores did, no small business can compete with giant super-chains that pay pennies on the dollar for products, and then in turn undercut the effective costs/profit margins of small businesses.

If you think small and medium business are the real drivers of the economy, then I guess you still live in 1960.

 

[zyxt9]

not saying big box has not played a role in the degrading SMB world; however, before the Great Recession, startups were able to get bank loans that were sizeable enough ($250k +) and only had to put 10-20% down. this allowed them to afford the development and growth costs that are typically losses for the first year or two. now it is difficult to even get a $100k and that requires 50% down, maybe more depending on your credit.

SMB employs a very large chunk of the population. big box employs a good chunk, certainly, but they are not the drivers nor are they a sure thing, just ask all the employees of big box locations that have recently closed shop.

the economy is in major flux. to not recognize that is fooling yourself no differently than the guys who got fooled by the real estate bubble and the internet bubble before that.

 

[redandguilty]

unemployment numbers alone don't tell the story guys, and you know it.

We're obsessed with the unemployment ratio, but there is an employment ratio (% of the population over 16 with a job).
http://data.bls.gov/timeseries/LNS12300000

 

[redandguilty]

same chart, long time frame

 

[zyxt9]

wow red, i cannot imagine why those charts are not more news worthy, but then again that would be a stain on Obama's record with that drastic dip after he took office and virtually zero recovery during his entire tenure. however, i will counter that i honestly don't believe he deserves all the blame, for like i was saying, the problem has been and continues to be that it is harder today for people to start a business than any prior time because banks are so heavily restricted in their lending practices. if money was made available, there would absolutely be more failures than under current structure, but it becomes a situation akin to "analysis paralysis" as banks and other entities are using every possible resource and angle to decline funds to startups as opposed to allowing people the chance to allow the "Land of Opportunity" to be just that. now we are only allowing people the opportunity provided they already have enough resources and the business ideas are hurting as a result. less innovation from the little guys is going to mean even more power for the big guys and while the big guys do move along with their technology advances, the small guys who look at things from an entirely different perspective and often provide leaps in technology as a result are not getting the funding they used to. the reason behind that is due to banks putting too much money into bad ideas and having them fail, but ironically these smaller startups are not wanting the multi-millions that was given poorly in the past, they are just asking for maybe a quarter of a million to get started and prove themselves. meanwhile you have multiple millions being pumped into bad ideas like solar power companies that have not proven their concept and go belly up with nothing to show for it, and that means banks and government loans are even more restricted to the small startup because we refuse to allow the same thing to happen again. it has become so restrictive that it is now constrictive and is choking the small companies to the point where they are failing to which everyone says, "see, i told you they would fail" when all they might have needed to succeed was the capital to make their idea a profitable reality.

but hey, the economy is fine because there has been this perceived "drop in unemployment".