Herman Cain Believes That If You're NOT Rich Then It's YOUR FAULT!

If you produce less you make less money. You're proving my point that the RICH rely on the bottom.

And you can't easily expand your brand into other categories. Most brand extensions are failures because of the position of the company. When you position your company as a "cereal maker", you screw up your brand when you start making pudding.

 

dude. if no one is buying what you're selling that's the market telling you do change what you're doing. it is objective fact that people don't want what your selling.

 

Recessions effect demand. And which class group is effected most during a recession? I can assure you it's not the guy driving around in a Ferrari.

 

recessions are the result of a misallocation of capital resources in to productive means that the market does not demand. capital must be reallocated- businesses that are not in demand must shut down.

 

Business drives this country. Demand drives business. Advertising drives demand. Ignoring ads because you can't afford it reduces demand. We can go on forever. It's the circle of economic life.

 

That doesn't change the fact that recessions come about because capital has been misallocated to productive resources that the economy cannot support.

 

It's more than that. That sort of thing happens all the time in various sectors of the economy and should never create economy-wide recession. For instance, the overbuilding of housing is not really a problem in and of itself. The housing sector falls, the builders go off to build something else and the rest of the economy hums along. What creates economy-wide recessions is interference in the money supply such that consumers, receiving signals from the government that their houses can be treated like ATMs and that prices will never go down, borrow accordingly. Now that our balance sheets are loaded with debt, the government insists that to cure the problem, we must borrow more and spend more.

 

I think you forgot the impact that NEWS has on a recession. And when you have a billion dollars leaking out of the economy each day, the news isn't going to be very good.

 

I also left out the impact of animal spirits.. the news has little impact on recessions. you keep saying billions are leaking out of the economy. that's balogne. also, its impossible for dollars to leak out of the economy.

 

This a simple minded take on the problem. The great majority of people arent protesting because they arent rich... they are protesting because they cant find a job. Thats one hell of a big difference from assuming that they are blaming Wallstreet and the corrupt government for not being millionaires.

Herman Cain doesnt acknowledge that exploitative trade policy that has shipped out american jobs by the millions is what people are protesting against. Herman cain doesnt acknowledge that Corporate lobbys are responsible for most of the overspending done by our government.. this includes warspending, war on drugs, Medicare, HR3200, Broken tax system that penalizes small business and coddles mega-corporations.

People that had jobs that provided insurance and a decent living wage are now subsisting on the low wage service sector jobs or are alltogether unemployed because there arent enough jobs to go around. To say that it is the fault of the average person who had worked for the past 10- 20 years and now finds himself without a job is asinine and narrow minded.

The people that are protesting arent former millionaires who lost it all and are now delivery boys at God Fathers Pizza... they are truckers and factory workers.. construction workers who cant find a job that will pay them more than unemployement insurance.

This why Herman Cain is out of touch... or is pandering to his donors. Herman cain is an ex- Federal Reserve Bankster and a corporate hack

Herman Cain has shown where his loyalties lie with complete support for bailing out Wallstreeter investment gambling banks and his complete scorn and opposition to a (26 billion dollar)bill to keep thousands of teachers employed. If teachers are getting paid for teaching kids.. its a waste of money in Cains world... if Wallstretter bankers are getting trillions to cover premeditated bad bets.. thats just great.. capitalism at work.

 

You mean bailouts and offshoring industry, and overblown military and warspending... commodity speculation run amok... all these things concentrating wealth at the very top and removing capital from the rest of the economy. If thats what you are trying to say.. your absolutlely right.

You dont think that billions of dollars are leaking out of the economy of the United States everyday... why do you think Hedgefunders offshore... or that Google and Exxon and the like have Corporate headquarters in Ireland. The fact that we are spending billions a day in Iraq and Afghanistan not to mention a 700 billion dollar military budget. How about the billions we lose everyday to trade imbalances with China... You dont see what you dont like... it doesnt mean the it doesnt exist.

If your ok with what is going on with U.S trade policy and you like where the U.S economy and standard of living is headed.. why dont you just fast foreward a bit and move to China.. because thats where we are headed.

 

yes and no.

bailouts occur after the recession and the original misallocation of capital has already occured. but bailouts are indeed a second misallocation of capital.

offshoring industry does not lead to recessions. it simply allows for specialization of labor globally, which is a good thing. however, if otherwise profitable businesses are being forced offshore by some government action then yes, this is a bad thing- this would be misallocation of capital at the expense of the country forcing the offshoring.

any unnecessary military or wartime spending is misallocation of capital. arguably if it was significant enough it could lead to economic collapse. but there is certainly an ongoing debate about what is necessary.

commodity speculation is not inherently bad. where it gets out of control is when the money used to prop up the commodity prices through leveraged speculation is being printed in to existence by the banking system. that is indeed a problem.

money can't "leak out of the economy." that is a common mercantilist myth. trade imbalance is also a myth. I have a huge trade imbalance with walmart. I buy tons of stuff from them, and they never buy a thing from me. who cares. when you spend a dollar in china, they must do something with that dollar. they can either save it which would increase the purchasing power of yours and my dollars, or they can spend it which means goods must flow back to them. either way it does not matter.

I don't like US trade policy, I think we are too protectionist. we have a (*)(*)(*)(*) ton of tarriffs and other trade barriers. the more trade the better.

 

Its because Herman Cain is Rich. Case Closed.

 

If that were true, then the purchasing power of every other dollar that people hold would be going up and that would be great for consumers. Do you believe that to be the case?

 

Why would China or anyone else want our green slips of paper if they couldn't invest it back in the US?

If the trade deficit is bad, does that mean the capital account surplus is bad as well?

 

Googles corporate headquarters are in the US, California to be exact, it has a European headquarter in Ireland.

Exxon has no significant presence in Ireland it's european headquarters are in Belgium.

Lots of companies multinationals choose Ireland as the location for their european headquarters.

It would be strange indeed to put your european head quarters outside of europe...

 

I like your attitude, I live that way also.

 

Something tells me you didn't read all of my posts.

 

I meant that news directly effects people's spending habits.

 

Yup, Youre actually expected to work for a living.

Now go get one of Obama's "Shovel Ready" jobs...

 

Who said all wealth is corporations and loopholes? I think when most people are talking about wealth and corporations in relation to it's direct disproportionate influence upon the economy and the government, people are talking about the richest 1%.

The idea of a family owned business such as a dairy farm growing into a large successful company is the American dream and I commend you for being part of that. My father's family owned a dairy and delivered milk from the late 1800's well into the 1970's. They sold the business when I was 3 in 1980 because none of my father's generation wanted to go into it. I feel slightly deprived of having had the opportunity to get into a family business and have slowly but surely developed some plans to start my own business someday to have to pass onto my family.

The problem is not the "wealthy" family business owners at all. They truly are the wealth creators in our country.

The problem is those with wealth to the point that they dominate markets and drive the small family businesses out of existence. They control the media and use it to promote the message that the Republicans and Democrats afford the Americans a choice in governance while financing and lobbying both parties to the point that they both promote the big government for big business agenda they want.

The problem is that these top 1% controllers of wealth exist and deal on a supranational scale, and therefore their interests don't coincide with the interests of the nation and thus they use their influence to enforce government policy that is contrary to the good of the country.

 

Your brainwashed indoctrination into the world of lies is obvious. You plainly expose that you know nothing about business or any market. But that you will joyously repeat lies that excuse you own shortcomings.
Whatever anyone in the US has or does not, is their own fault/credit, no one else's. Business has a singular responsibility, that is to make profits however, wherever those profits can be legally made. Business owes me nothing, owes you nothing, owes the US or any other nation, NOTHING!

What the corporations out there are doing is,,,,,,,,,they are employing the 82% of the workforce that is working. The 18% that are underemployed or unemployed have no skills to market. The rest ARE working.

 

That is actually not true. Small businesses account for more than half of the private sector jobs in this country. From the period of 1989-2004, small businesses created 21.3 million jobs domestic jobs while big business only created 1.8 million domestic jobs.

Small business growth is the engine the US economy needs to grow. Big business stands in the way of that.

 

Do you have some inkling that liberals and the OWS thugs are giving any size business a pass? If you HAVE anything, or, are in business, they claim that you are the problem. They think that no businessperson of any size has earned or deserves what they have. The jealous parasites want whatever anyone has, as long as they don't have to actually work for it.

 

Who creates the market that the rich sell to? If too much money goes to the top, the economy will FAIL! Mark my words! It's like the water cycle. Money works in the same way. Its goes to the top and rains back down to the bottom. If it doesn't rain down quickly enough, then the bottom goes DRY. You NEED government to speed up that process.