SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : The ENRON Scandal -- Ignore unavailable to you. Want to Upgrade?


To: Mephisto who wrote (4711)1/8/2003 1:17:07 PM
From: Mephisto  Read Replies (5) | Respond to of 5185
 
"Bush's proposed tax cuts, which include speeding up income tax reductions and
eliminating taxes on stock dividends, are decisively weighted toward the rich and
might not spur anything in the short run. Corporations are mired in record debt, so
they would be unlikely to issue much in the way of dividends. There's also the
fairness problem. Anyone making more than $1 million a year would save a hefty
$45,098 in dividend taxes, according to the Urban-Brookings Tax Policy Center.
(That's about what Vice President Dick Cheney would have saved on last year's
return.) Most middle-class investors wouldn't benefit at all because their only
stocks are in tax-deferred retirement plans."


Article: Bush Tax Plan Wakes Critics
EDITORIAL
Source: Los Angeles Times
Date: January 8, 2003

SI Reference: Message 18417869



To: Mephisto who wrote (4711)1/8/2003 1:20:50 PM
From: Mephisto  Respond to of 5185
 
Congress Asked to Raise Debt Ceiling
Treasury Plea Likely To Spur Political Fight

Message 18417330



To: Mephisto who wrote (4711)1/10/2003 12:26:39 AM
From: Mephisto  Respond to of 5185
 
World will count cost of US misery

…"this deserves to be called
voodoo economics - except that George Bush senior probably
has intellectual property rights over the phrase."


Victor Keegan explains why looming problems for the
world's largest economy threaten uncertainty on a far
wider scale


guardian.co.uk
Thursday January 9, 2003

The United States economy is looking more and more like a
welcoming landscape obscured by three dangerous mountains.


President George Bush inherited two of them - the consumer
debt mountain and the trade deficit mountain - but he has built a
third with his own hands, using only government debt.

So far, it has to be admitted, the US economy has done
remarkably well in the face of such formidable obstacles.

In the first three quarters of 2002, gross domestic product
expanded by 3% - not bad for an economy that has been
through a dot.com collapse, a corporate governance crisis, the
events of September 11 and an increasing threat of war.

Mr Bush is hoping that his tax cuts will give consumer spending
another boost, meaning the economy can continue to defy
gravity for a while longer.

It may well do - but as the deficits get larger, the danger of a
sudden implosion will become greater. It is not possible to allow
the trade deficit, which is already more than 5% of GDP, to keep
expanding for ever. Sooner or later, investor confidence will be
punctured and international money - which has been financing
the deficit - will flow out like a tidal wave. Ditto for consumer
debt.


In these circumstances, Mr Bush's budget was the right
medicine given to the wrong patient.

Yes, there is a case for a Keynesian demand stimulus to keep
economic activity up during a period of turbulence. But the Bush
bullion is going not to poor people who would actually spend it,
nor even to public works that would benefit everyone. It is going
to rich people who are likely to add it to their savings.

Half the package is going to finance the abolition of taxation on
dividends. This will not benefit poorer shareholders whose main
equity wealth is in retirement funds already exempted from
taxation, but rich people who are buying shares as individuals.


As a means of economic stimulation, this deserves to be called
voodoo economics - except that George Bush senior probably
has intellectual property rights over the phrase. Don't think that
all this is something that does not affect us over here - it does,
in two ways.

Firstly, if the dividend proposals get through a
Republican-dominated Congress, they will almost certainly lead
to demands for the similar tax treatment of dividends here to
restore a "level playing field" regarding investment.

If this happens, the chancellor will have to raise taxes elsewhere
to pay for income foregone from untaxed dividends.

Secondly, and most importantly, the US - by far the biggest
economy in the world - is still the locomotive of world recovery. If
it sinks into recession because consumers stop spending or
international investors take fright, the rest of the world will be
reeling under the effects.

Why? Because Europe's main source of extra growth at the
moment is the US trade deficit - the fact that millions of
Americans are buying imports.


This is reckless from the point of view of the long-term health of
the US economy, but to Europeans it is like Red Cross parcels
being handed out at a time when domestic demand is so weak.
The simple truth is that we are all in this together.

The US trade
deficit is becoming so huge that the country will not be able to
trade out of it, even if a lower dollar restores some lost
competitiveness.


What it needs urgently is for Europe to take up the locomotive
role and expand its own economy to provide a market for
exports from the US and the rest of the world.

There is no other economic bloc able to take on this role. China
is still too small and Japan - the third biggest economy after the
US and Europe - is desperately trying to stave off deflation after
ten years of economic stagnation.

If Europe does not start to exploit its own underlying economic
strength, it too could follow Japan into the economic doldrums.

The EU has been so distracted by the demands of its new
currency that it has failed to get its act together on even more
important matters.

Maybe it should have learned how to walk before it started
running with the euro.

guardian.co.uk



To: Mephisto who wrote (4711)2/20/2003 1:05:54 AM
From: Mephisto  Respond to of 5185
 
In face of globalisation, US turns protectionist
ONLY IN AMERICA / CHIDANAND RAJGHATTA

timesofindia.indiatimes.com

TIMES NEWS NETWORK [ SUNDAY, JANUARY 19, 2003 03:19:57 AM ]

It wasn't too long ago that a shudder of fear ran through the Indian spine over the prospect of foreign companies overrunning the domestic market. Farm lobbies worried about foreign produce (remember California almonds and New Zealand apples), local manufacturers worried about foreign goods (Chinese locks and bicycles, Korean electronics), and labour unions worried about local jobs. Globalisation was a fearsome word.

Some of the worries persist, but it appears India is also beginning to appreciate the opportunities that globalisation is offering. Just as India was fearful of foreign imports, and turned protectionist at the slightest sign of being swamped, so too the US, where the atmosphere in the first decade of 21st century resembles what India went through in the nervous 1990s.

Nothing better illustrates what free trade is doing to the US than the story of the hoary Bethlehem Steel, a saga that would have found a lot of sympathy and resonance in India's rust belt in the yesteryear, except that it is precisely the same rust belt, now in a shiny revitalised avatar, which is bringing the US giant to its knees.
At the height of its glory, Bethlehem Steel was one of the world's great corporations. It employed more than 300,000 people and shipped nearly 25 million tons of steel a year.

The behemoth began producing steel before the Civil War and its output was used in the first railroad tracks and the first skyscrapers (it still supports the Golden Gate Bridge.) During World War II, it built America's first aircraft carrier and assembled more than 1,200 ships for the Navy.

But the glory days are over. By the early 1980s, Bethlehem first began to feel the heat from smart new Korean and Japanese companies which did more for less, and more with less. That was at a time when Indian companies were considered even more sloppy and slothful than the American giants.

In the two decades since, there has been a complete turnaround. The word now in the
US steel market is the Tatas and the Mittals run the sharpest operations around.

With an ageing workforce, expensive pension obligations and massive healthcare payouts,
US companies have been routed. Bethlehem Steel itself filed for bankruptcy in 2001.


The story is now being repeated in many other sectors as Indians gain in confidence.
Indian companies are now learning to challenge and overturn US protectionism in both
American and international courts, as Dr Reddy's did with Pfizer in a New Jersey court
and the steel lobby did at WTO. And this is just the beginning, although it needs to be
stressed that you win some and you lose some.

Americans meantime are now beginning to whine about Indian textiles,
Indian pharmaceuticals, Indian diamonds and jewellery, and Indian everything.
The story is beginning to shift from services to goods and manufacturing,
even as a raging debate has broken out about the former.


One the one hand, the US wants to reduce and cap the number of skilled
professionals from foreign countries like India. On the other hand, the US
does not want its jobs to go out to foreign
countries like India where it can be done cheaper, quicker and better.
Who would think that a decade ago it was the US which was
forcing globalisation down India's throat and India was seen as
the patron saint of protectionism?



To: Mephisto who wrote (4711)3/7/2003 8:39:38 PM
From: Mephisto  Respond to of 5185
 
Jobs Plunge 308,000 Amid War Worries
Friday March 7, 4:55 pm ET
By Caren Bohan

biz.yahoo.com

The following is an excerpt:

WASHINGTON (Reuters) - "The U.S. economy last month suffered its worst jobs drop
since the aftermath of the Sept. 11 attacks, as worries over an Iraq war led companies
to put the brakes on hiring.

Payrolls plunged 308,000 in February, the Labor Department said on Friday. It was the
biggest slide since a 327,000 drop in November 2001, just after the deadly hijack
attacks on the World Trade Center. The jobless rate rose to 5.8 percent in February
from 5.7 percent in January.

Harsh winter weather and the call-up
of military reservists to the Gulf may
have played into some of the recent
weakness."



To: Mephisto who wrote (4711)4/14/2003 1:35:39 PM
From: Mephisto  Respond to of 5185
 
Unemployment hurts in many way

" Among the many things overshadowed by the war is the
substantial human toll that is quietly being taken by the
faltering U.S. economy. Putting Americans to work is not
part of the agenda of the Bush administration, and the
fallout from this lack of interest is spreading big time."

April 8, 2003


By BOB HERBERT
SYNDICATED COLUMNIST

seattlepi.nwsource.com

"I've gone through a few stages of depression and
frustration," said Dina Ziskin, who is 31 and lives in
Brooklyn, N.Y. "Why is it taking me so long? I panic a lot. I
did not think it would be this difficult to find a job."

"I can't tell you the number of divorces we hear about," said
Janelle Razzino, who runs an executive search firm in
Westwood, N.J. "The job loss in these cases was probably
the final straw. Nobody needs that kind of pressure, stress,
whatever."

"It's like someone ran an electric shock through your
system," said Dr. Steve Korner, a psychologist in Cresskill,
N.J. "People are anxious, depressed, feeling unwanted,
powerless. The job market is really awful for a lot of people."

Among the many things overshadowed by the war is the
substantial human toll that is quietly being taken by the
faltering U.S. economy. Putting Americans to work is not
part of the agenda of the Bush administration, and the
fallout from this lack of interest is spreading big time.


The United States is hemorrhaging jobs. On Friday the
government reported that 108,000 more jobs were lost in
March. Some 2.4 million jobs have vanished since the
nation's payrolls peaked two years ago.

The jobless rate held steady at 5.8 percent last month, but
that is extremely deceptive. People who have become
discouraged and stopped looking for work are not counted
when the unemployment rate is calculated. This keeps the
official rate artificially low. There are 5 million people in the
discouraged category and their ranks are growing.

David Leonhardt, in an article in The Times on Saturday,
wrote:

"Last month's job losses cut across almost every sector of
the economy. Manufacturers reduced employment for the
36th consecutive month. The vast services industry, usually
a source of stability, has cut 121,000 jobs in the last six
months, with department stores, restaurants, airlines and
hotels all paring their payrolls in March. After adding jobs
through last year, local and state governments have also
begun to make cuts to close budget deficits."

There is not much of a sense anywhere that things are
about to improve. "It seems to me that the recovery's been
six months away for two years running," said John
Challenger, chief executive of Challenger, Gray &
Christmas, the international outplacement firm. "The latest
version of that is that when the war ends the euphoria will
trigger enough optimism on the part of either consumers or
businesses to finally turn things around. I'm certainly
dubious about that."

The loss of a job is like a blow to the solar plexus of an
individual family. Grand plans give way to a state of
emergency in which it is not at all clear how the rent or the
mortgage will be paid, or how the bill collectors can be
satisfied from month to month, then week to week, and
finally day to day.

"I've got my own little Ponzi scheme going," a distraught
former executive told me last week. "When the credit card
companies pull the plug on me, I'm finished."

The executive, who asked not to be identified, said he was
depressed but could not afford to see a therapist.

John Sampson helps run a support network in northern
New Jersey for telecommunications experts who have lost
senior positions. "This is the bleakest employment picture
I've ever seen," he said. "The number of people looking for
jobs is overwhelming. We've got a whole bunch of people
now who are doing everything from selling cars to driving
limousines to working in retail."

Sampson, who is 62, said he's been out of work for more
than a year.

There doesn't seem to be much awareness in the Bush
administration of the terrible distress of the unemployed
U.S. worker. This is an ache that does not extend to the
gilded towers of the very wealthy, which is where the
administration has always focused its concern.

The White House response to the latest job loss figures is
the same response it has had all along to bad economic
news: more tax cuts are the cure.

Sampson, who described himself as coming from a
"Republican background," said he feels the U.S. worker has
been abandoned. "While I'm not a big Bill Clinton fan," he
said, "I liked what his labor secretary had to say. Robert
Reich always talked about the work force as a national
asset. It is. We should treat it that way."

Bob Herbert is a columnist with The New York Times. Copyright 2003
New York Times News Service. E-mail: bobherb@nytimes.com