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Old 04-27-2010, 15:46   #28
GratefulCitizen
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Join Date: Aug 2007
Location: Page/Lake Powell, Arizona
Posts: 3,445
The current administration seems hell-bent on a vicious cycle of self destruction.

Businesses are making profits, but they are doing that through productivity increases.
In the case of my company (UPS), they are making profit by squeezing more labor out of fewer workers/man-hours.

Government dollars compete with private dollars for capital.
Also, when money is given, either through direct transfer or tax credits, to potential laborers, it drives up the cost of labor.

The private sector is going through necessary contraction/correction.
Government spending must be scaled back to match.

Deficit spending drives up (or prevents lowering of) costs for businesses.
They're killing the goose which lays the golden egg.
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