Low-balling the US economy

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    Sep 13, 2010 6:58 PM GMT
    A new Republican business model has emerged, since Henry Ford some 90 years ago thought paying his employees above the scale would help his business. Now it's about paying your employees peanuts, or else out-sourcing your jobs. Might make nice short-tern profits, but what about the long term?

    http://www.newsweek.com/2010/09/13/how-our-quest-for-bargains-could-hurt-the-economy.html
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    Sep 13, 2010 10:24 PM GMT
    Which employees are you talking about? The ones with the multi-million bonuses and postmortem mausoleum or the ones who have to pay more for their health insurance and avoid crossing the boss in order not to be fired?

    Surely the former can afford to boost the economy? Or are they the ones who're saving the most in their piggy banks?
    http://www.bankrate.com/finance/savings/how-the-rich-save-today-1.aspxExperts who work with the wealthy and observe their spending habits say rich folks are sitting on their cash. Just like the rest of us, they're worried about the future. Suddenly uncomfortable with the nation's financial volatility, the wealthy are revisiting their investment and savings strategies, says Chris Geczy, director of the Wharton Wealth Management Initiative at the Wharton School in Philadelphia.

    "They're consuming less and saving more," Geczy says.

    Like so many other Americans, "the mass affluent were overextended" in real estate and investments gone sour, he says. Now, they are more likely to invest in fixed-income vehicles.


    Which makes extending the tax cut to boost the economy a total bowl of shit.