the US economy in 2011

[EV_Ares]

If you're referring to profits of big corporations and Wall Street, next year is likely to be a good one. But if you're referring to average American workers, far from good.

The two American economies — the Big Money economy and the Average Working Family economy — will continue to diverge. Corporate profits will continue to rise, as will the stock market. But typical wages will go nowhere, joblessness will remain high, the ranks of the long-term unemployed will continue to rise, the housing recovery will remain stalled, and consumer confidence will sag.

The big disconnect between corporate profits and jobs is likely to continue because America's big businesses are depending less and less on U.S. sales and U.S. workers. Their big profits are coming from two sources: (1) growing sales in China, India, and other fast-growing countries, and (2) slimmed-down US payrolls.

In a typical recovery, profits lead to more hiring. That's because in a typical recovery, American consumers head back to the malls —and their buying justifies more hires. Not this time. All the hype about Christmas sales over the last few weeks masked the fact that American consumers demanded bargain-basement prices. And the price-cutting dramatically reduced sellers' margins. In short, profits aren't coming from American consumers — and profits won't be coming from American consumers in 2011.

Most Americans don't have the dough. They're still deep in debt, can't borrow against their homes, and have to start saving for retirement.
The Dow Jones Industrial Average is rising because of foreign sales. General Motors is now making more cars in China than in the US, and two-thirds of its total sales are coming from abroad. When it went public last month it boasted that soon almost half its cars will be made around the world where labor is less than $15 an hour.

The rest of article @ link: http://www.truth-out.org/robert-reich-new-years-prediction-ii-the-us-economy-201166402?print

[MineralMan]

1. More gloom and doom.

No, thanks.

[paulk]

2. it's a realistic assessment of our economy

I assume you're doing well, based on your trite dismissal of Reich's concerns. For many of us, however, Reich is dead on. The growing disparity between the rich and the poor, the disappearance of the middle class - these things are HAPPENING -

The two tiered economy that Reich describes is a reality, and it's a reality that needs to be addressed, not written off as "doom and gloom".

[MineralMan]

3. You assume incorrectly. My wife and I are barely squeaking by.

2011 looks like it might be a little better, since small businesses seem to be more interested in spending on their internet marketing, and that's what I do, but it's still going to be very tight.

I am addressing it. I'm marketing my services even more. I can do nothing about anything but my own economy. I'm seeing signs of improvement at the local, small business level. That's an encouraging sign.

[TBF]

6. "I can do nothing about anything but my own economy" - that sounds very defeatist to me. nt

[EV_Ares]

7. I see that too as well as even if as one says "my own economy" that is going to or has to interact

with the economy as a whole. So, if you disregard one or the other you are defeating the purpose of a good economy and one that includes all not just a few or yourself.

[MineralMan]

8. Does it? It's not, really. My work helps small businesses increase

their sales. Increased sales mean that they employ more people. Aside from my political activities, which are mostly involved with GOTV efforts for Democratic candidates, I can think of little else I can personally do that actually has an effect.

As an example, working with a web designer, I revamped the web site for a swimming pool and spa company. A year later, they have moved from being the number three pool builder in the Twin Cities metro area to the number one builder, and have hired six new employees. Similar results have come for several other new sites we have created.

Sometimes local work brings positive results. That's something I can directly affect. In the meantime, my income improves, so I can spend more, also affecting my local economy.

So, you see, improving my own economic conditions has a snowball effect. I'll never be wealthy, but never had that as a goal in the first place.

[TBF]

13. Your work is great - but it doesn't mean we shouldn't strive for a better world

for all of us.

[EV_Ares]

14. So, no denial of what you say if what you say is "truth". However, whenever an economist

speaks the truth and a truth that anyone can see is going on right before them in our country, that has relevance as well and for you to deny it as truth is hilarious and shows you for whatever reason have a selfish self-interest instead of a community interest in the well being of others.

[MineralMan]

15. You know nothing about me, nor about my interests.

Sorry.

[EV_Ares]

17. Didn't you read my post, never said whatsoever that I did, show me where I said that which is why

my comment said what it did which is exactly what you said, we know nothing about you at all except what you say.

[MineralMan]

19. I'm done in this thread. Seeya.

[EV_Ares]

20. LOL, yeah, understand. The truth will always win. eom.

[EV_Ares]

4. Exactly, paulk what do you think are the plans of the government and US corporations for when the

people are almost or totally unable to buy any goods such as those made in China as well as any other cheap goods. Something will have to give sooner or later. As you say, Reich is dead on and all one has to do is pay attention & they can see this.

[paulk]

21. it seems that the powers that be are willing to accept

a permanent unemployment rate that's around 10% - with an underemployment rate of around 18%.

it keeps wages down, provides for a permanent underclass.

I don't see obama or most of the dems fighting this

[EV_Ares]

5. So, is it your thought to not publish the truth. Actually this is not "gloom and doom" but "truth"

[MineralMan]

9. Ah, the truth, is it?

The truth is far more complex than some negative post on the internet. Seeking the truth is a lifelong pursuit. I certainly have not found the truth in my 65 years on the planet. I didn't find it in this OP, either.

[Karmadillo]

10. Truth v. truth. What's incorrect in the OP?

nt

[EV_Ares]

12. A good question because if you are alive and awake, all you have to do is

look around you and you see that he is totally correct in what he says in his post.

[EV_Ares]

11. A negative post? You say seeking the truth is a lifelong pursuit, I remind you

of this little quote. ""If you cannot find the truth right where you are, where else do you expect to find it?" - Dogen

What you mean is you only seek that of which you want to hear. You didn't find it in this OP because you simply want to deny what is actual truth. That is quite clear.

You need to continue listening to those such as Beck, Hannity or other faux personalities who also like you do not like truth so they make up their truth.

[MineralMan]

16. Beck? Hannity?

I've never listened to either of them. As I said, you know nothing about me. Your assumptions are woefully incorrect. Have a very nice day.

[EV_Ares]

18. You need to read and not get upset when you have been called. Nowhere did I say

you listen to Hannity or Beck but said you might listen to them as they also do not like "truth". Where did I say you listen to them and where did I ever indicate i knew anything about you or your interests. No assumptions were made. Again, you refuse to acknowledge truth.

[Odin2005]

23. Putting my head in the sand? No thanks.

Clapping your hands and saying "happy thoughts" as a mantra doesn't do anything, no matter what "The Secret" says.

[girl gone mad]

24. "Ignore it and it will go away"

has never been a viable plan.

Thankfully, we have many intelligent people who are willing to look at the festering wounds of our economic decay and make a reasonable prognosis and treatment plan which, if implemented in time, could lead to broader recovery.

I often wonder what those who choose to remain ignorant believe they have to gain from the patient's death.

[KillCapitalism]

22. Bend over and grab you ankles in 2011.

$5/gal. gas is coming...believe it!

[lib2DaBone]

25. Get ready for the GO-Pocolypse..the assault on America...

Starting next week, you are going to see the largest GOP attack EVER (in history ) on the American social fabric.. the attack on Social Security and Medicare.

The false claim that the deficit can be cured by taxing the poor and taking everything they own including their shoes on their feet.

You are going to see the meanest, most hostile, most anti-social behavior you have ever dreamed of from another human being.. from the REPUBLICANS ...busily stripping the assets of the working poor.

For instance.. Prick Scott.. the asset stripper from HCA Corp is set to take over as Gov of Florida. His claim to fame is that he took numerous profitable community hospitals and stripped away their assets while he raped Medicare of Billions. And what did he get for this behavior? He was elected to Governor of FLorida.

Next week the Repukes start their attack on what's left of the new deal. (With Mr. Obama's help and seal of approval) This attack on the working poor will plunge us into the depths of the new depression.. one like we have never seen before.