Category Archives: Business/Economics

Business/Economics, Opinion, U.S.

Despite bad economy 1 in 3 U.S. workers hate their job so much they want to quit, careers offer diminishing returns

“From the employee viewpoint, not only has the deal been redefined, in many cases, the new deal is not being delivered as promised.”-Mercer

In a report from human resource company Mercer, one in three workers in the United States hate their job so much they would rather quit and take their chances being unemployed.

One of my daughters works for a local Home Depot store, and they have employees quitting almost weekly.  And the local job market really sucks.  By the way, she really likes working at the local Home Depot and thinks there are other issues regarding those employees who quit.

But I’ve been amazed at how many people quit their jobs in these bad times, and the times are getting worse.

According to Mercer, the main reason for employees hating their jobs, is actually part of our economic problem; decreasing pay/benefits, cuts in work hours and the realization that their jobs are dead end careers.  When adjusted for inflation, the average U.S. worker is making $400 a year less than in 1988.  Why bust your butt for diminishing returns?

 

Business/Economics, International, U.S.

What Economic Recovery? United Nations says government cut backs making things worse

“Austerity measures in response to high government debt in some advanced economies, such as Greece and Spain, are not only threatening public sector employment and social expenditure, but also making the recovery more uncertain and fragile.”-UN Department of Economic and Social Affairs

The UN is warning that cuts in government spending will only make the global economy worse.  This comes a week after the International Monetary Fund said the economic crisis was now in the political phase, meaning the private sector had failed.

Interestingly the UN is also blaming the bad economy on global lenders like the IMF.

 

Business/Economics, International, Opinion

What Economic Recovery? Britain wants the European Union to collapse

Discussions within the U.K. Parliament reveal that British leaders are hoping for a quick end to the European Union via a Greek collapse.

Former Foreign Secretary Jack Straw said, concerning the Euro: “…is going to collapse…” and “Is it not better that this happens quickly rather than a slow death?”

Current Financial Secretary to the Treasury, Mark Hoban said: “I am not going to comment on whether the eurozone will remain intact or not. Clearly, this crisis demonstrates the huge strain the eurozone in under. That is why it was right for us to stay out of the eurozone.”

Current Prime Minister, David Cameron said: “We were not involved in the first bailout of Greece; we don’t believe the European financial mechanism should be used in any way.”

Conservative Member of Parliament, Anne Main said Greece “…should be allowed to depart peacefully from the eurozone.”

Current Chief Secretary to the Treasury, Danny Alexander, said the U.K. would not help Greece:  “The package for Greece that is already in place is a eurozone package with the IMF.  It’s the eurozone that is taking forward discussions now about the next stage of dealing with Greece’s substantial problems.  There’s simply no proposition on the table for the U.K. to contribute beyond that IMF involvement and I don’t expect there to be one.”

When you take what the British leaders are saying, along with the International Monetary Fund’s warnings that the default of Greece will lead to a collapse of European Union, then it definitely looks like the British want Greece to default.  Historically the British never really liked the concept of the European Union.

 

 

Business/Economics, International, U.S.

Global Great Depression: IMF warns of global collaspe if Europe goes down the economic toilet

“Given the euro area’s role in the global economy, success in addressing the sovereign debt crisis and raising growth has a significant impact elsewhere.”-IMF report

June 21, a new report by the International Monetary Fund says European economic collapse could bring on a Global Great Depression.

All international finance eyes are focused on what happens with Greece.  There could be a domino effect if Greece defaults.  A check of history will show that a similar situation happened prior to the U.S. Stock Market Crash of 1929, which eventually led to the Great Depression in the U.S.

Here’s a little reminder: Germany was forced to pay the United Kingdom and France (and some other countries) huge reperations after losing the First World War.  The U.K. and France owed the United States big time money for saving their butts during the war.  U.S. corporations were banking on that money from U.K. and France, and actually ran their businesses on debt thinking ‘no problem the French and British will pay up’  (it was called “The Roaring Twenties”).  Well, the victors of the First World War made things so bad for Germany there was no way they could make the reparations payments, so they defaulted.  As a result, the U.K. and France defaulted on their payments to the United States.  As a result, U.S. corporations defaulted leading to the Crash of ’29.

Basically the IMF is saying we are in a similar situation with the current debt crisis in Europe.

Business/Economics, U.S.

Who the Government works for: Supreme Court screws 1.5 million Walmart employees

The United States Supreme Court stopped a class action lawsuit against Walmart.  A sexual discrimination claim could have affected 1.5 million employees.

In a 5 to 4 ruling the Supreme Court ruled there was not enough evidence to proceed with a lawsuit.  Originally Walmart was faced with thousands of smaller lawsuits, but lower courts agreed to merge the claims into one big class action lawsuit.

The main evidence of discrimination against women is the fact that 70% of Walmart hourly paid employees are women, yet less than 1/3 of salaried management positions are held by women.

Justice Ruth Ginsburg offered encouragement to the plaintiffs: “Walmart’s delegation of discretion over pay and promotions is a policy uniform throughout all stores…” and that plaintiffs should work to provide overwhelming proof of such.

Early reports said the Supreme Court voted against the lawsuit because chances were good Walmart would lose, and it would cost Walmart tens of millions in settlements.  Walmart has a track record of losing lawsuits, not just in the United States, but around the world.

In the words of Telly Savalis: “Who loves ya baby?”  It’s not your government that’s for sure.

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho’s May employment performance, by sector

Payrolls for Idaho’s manufacturing sector remain stuck at 1991 levels, for the 6th month in a row.

Total construction employment for May was at 1994 levels.

Idaho’s business services sector remained constant, for the third year in a row.

The health care sector created jobs in May, but at only half the pace of the past five years.

The retail sector actually added jobs, surprising some Idaho analysts.

Employment agencies also added jobs.

Overall, most sectors are stuck in 1990s employment/payroll levels.

Source: Idaho Department of Labor

 

 

 

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho’s Unemployment rate goes down, but not because of job creation

The Idaho Department of Labor reported a slight drop in Idaho’s unemployment, now at 9.4%, but they also reported a drop in job creation.

The Department of Labor says seasonal hiring for May was below normal levels, and that job creation was weak.  So why the drop in the unemployment rate?  Officials say it’s due to workers retiring, workers dieing, and unemployed people who have stopped looking for work!

Idaho labor officials say that so far 2011 is lagging behind 2010, when it comes to job creation.

 

Business/Economics, Idaho, U.S.

Government Incompetence: Idaho can’t make Medicaid payments, yet 102 state employees get bonuses!

June 20, Idaho announced that they can’t make Medicaid payments, yet last week they announced bonuses for 102 government workers!

Example: Legislative Services Director Jeff Youtz, paid himself, and his staff, bonuses equal to $94,633.  The total amount of bonuses paid to agencies of the State of Idaho came to $227,003.

Idaho House Speaker Lawrence Denney said it was necessary to “…retain qualified and experienced staff.”

Idaho House Majority Leader Mike Moyle thinks otherwise: “…with the budgetary concerns we’re dealing with, I don’t think it was wise or prudent.”

Moyle is correct.  Consider that the government of Idaho has laid off 517 employees since 2009, and has suspended Medicaid payments, twice now, along with drastic cuts in education and other services (called “austerity” cuts).  Bonuses for government workers are not what the taxpayers want to see.

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho Stops Medicaid payments

June 20, Idaho Department of Health and Welfare says they’re out of money for Medicaid.

As a result, Medicaid payments to Idaho hospitals will be suspended for at least one week.  Those payments would have come to $13 million.  Officials will announce, by the end of the week, if payments will be delayed for another week.

This isn’t the first time Idaho stopped Medicaid payments to hospitals.  In 2010 they suspended nine weeks of payments.  Health and Welfare officials say that for some reason the majority of payment claims always come in when state Medicaid funds are at their lowest point.

 

Business/Economics, International

What Economic Recovery? Greece threatens default if they don’t get second bailout, EU Finance Ministers say domino effect if Greece defaults

“If Greece was to be the first country to default, eyes would turn to other countries such as Ireland, Portugal, Spain, Italy, maybe Belgium but also France, given its deficit and debt levels. We don’t know where the contagion would stop.”-Didier Reynders, Belgian Finance Minister

After the European Union announced they would hold back the second bailout loan for Greece, because they want Greece to make more spending cuts, Greece said pay up or we will default on the first loan.

Greece is supposed to make their first payment, on the first bailout, in July.  Greek officials say they need the second bailout before then, or they won’t be able to make the first payment.  Greek Prime Minister George Papandreou, also warned of a “violent bankruptcy”.

The Belgian Finance Minister, Didier Reynders says there is evidence that the Greeks presented false economic statements prior to getting the first bailout loan.  This is one of many reasons the EU is now holding back on the second loan.