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How's That Obama Recovery Feeling?

^taxes are not holding back manufacturing. American manufacturing output has stayed constant over the last decade or so, but manufacturing employment has decreased steadily because of technological advances.

why are manufacturing jobs more important than other jobs in this recovery?
 
They represent good wages for those who don't have the benefit of a college education. Also, by not manufacturing here in the US we are at the mercy of those countries that do.
 
a cursory Google search came up with this:

In the latest survey by KPMG International, 41% of U.S. manufacturing executives expect employment to increase, up from 28% in October.

With regard to inflation, the percentage of manufacturing executives expecting to see increases in inflation doubled to 45% from 22%.

As far as improved business activity, 68% of manufacturing executives expect improved business activity, compared with 57% in October.

The survey found that sentiment among U.S. executives about increases in revenue, profits and business activity has generally rebounded from a dip in October. However, it is important to note that the survey was taken prior to the events in Japan, and the findings also only partially reflect the impact of recent Middle East and North African unrest.

"While the impact of these events is a challenge to predict, our survey found businesses leaders have clearly shifted focus from cost cutting to growth in a post-recession environment, though some remain cautious about hiring and are not convinced improved business conditions will result in higher prices," said U.S. vice chairman Mark A. Goodburn at KPMG LLP. "This is consistent with the continued emphasis on increased productivity we’re seeing throughout the marketplace, as businesses work to leverage new operations and IT models that improve efficiencies within their organizations.

"With stronger optimism around business activity and with many businesses still sitting on cash reserves, there may be positive momentum, but increasing payroll continues to be a significant hurdle as companies look for ways to improve their operations with adding to headcount," Goodburn said.

Higher Revenues and Profits Expected

The survey showed 65% of U.S. manufacturing executives expect higher revenues, up from 52% in October, and a similarly strong 57% of U.S. service sector executives believing revenues will increase, up from 47% in October.

Profit expectations also rose, with 62% of manufacturing executives believing profits will increase.

U.S. manufacturing and executives expressed greater optimism than their global counterparts across all categories, including business activity, revenues and profits, though sentiment among European and BRIC country executives was generally positive and higher than October's results.

"We've seen a marked increase in CEOs preparing to aggressively pursue growth opportunities by re-evaluating their business models, shopping for acquisition targets, and strategically divesting non-core assets, while at the same time enhancing their risk controls to ensure the ship is secure as they transform their organizations," Goodburn added. "Clients are increasingly moving to Cloud-based solutions and more strategic sourcing and delivery models to drive these business improvements. These changes are adding new layers of complexity for senior executives to manage, though are quickly becoming the norm as competition intensifies."


http://www.industryweek.com/articles/manufacturers_expect_to_hire_24252.aspx?Page=2

It appears without any tax carrot dangling out there that American manufacturing is looking up
 
Yes they are (re: taxes at the top of this page). If you lower the tax burden, then the net production cost is lowered to compete with countries that allows cheaper labor.

Manufacturing jobs are more important than other jobs because they result in exportable products that increase the country's economy as a whole. One poor redneck selling a McD's hamburger to another poor redneck down the street from him doesn't increase the national economy at all, it just shifts money between two people at the same income level in the same locale.
 
the article I posted indicates to me that efficiencies in operation are still key to production costs, not tax burdens
 
Tie the incentives specifically to bricks/mortar and increased payroll. Our tax laws have always been about incentivizing and disincentivizing certain behaviors.

Companies like Amazon who are expanding in the U.S. always make tax incentives part of their decision-making process in deciding where to locate new distribution facilities, plants, etc.:

http://processstory.com/2011/04/26/pro-amazon-forces-strike-back-on-tax-incentives/

For these companies, in the end, it's about finding a place with the lowest cost structure when they are looking to expand. You can debate whether you are willing to trade the incentives requested for the potential jobs created, but that is definitely part of the dialogue.
 
84Deac said:
Tie the incentives specifically to bricks/mortar and increased payroll. Our tax laws have always been about incentivizing and disincentivizing certain behaviors.

Companies like Amazon who are expanding in the U.S. always make tax incentives part of their decision-making process in deciding where to locate new distribution facilities, plants, etc.:

http://processstory.com/2011/04/26/pro-amazon-forces-strike-back-on-tax-incentives/

For these companies, in the end, it's about finding a place with the lowest cost structure when they are looking to expand. You can debate whether you are willing to trade the incentives requested for the potential jobs created, but that is definitely part of the dialogue.
Click to expand...

I could be wrong, but wouldn't the type of incentive you are describing be a state gov issue? The "angry Republican" blog post you referenced seems to indicate that.
 
Companies exist to make maximum profit. That's capitalism. Incentives/tax breaks are socialism.
 
WakeandBake said:
I could be wrong, but wouldn't the type of incentive you are describing be a state gov issue? The "angry Republican" blog post you referenced seems to indicate that.
Click to expand...

Absolutely. I was just trying to respond to your question about where were the companies asking for tax incentives.

From a federal standpoint, you already dismissed my proposal for tax amnesty for overseas profits that are brough home and reinvested, but it's something that I think ought to be given serious consideration.
 
^well, I didn't dismiss it so much as it appeared to be the only solution you gave in that post. It sounds interesting, I will have to try and educate myself about it and mull it over...
 
ONW said:
Companies exist to make maximum profit. That's capitalism. Incentives/tax breaks are socialism.
Click to expand...

I'm not sure if this was a serious point or not, but I'll bite. How is allowing a company to keep more of what it earned (via capitalism) considered remotely close to socialism? To the extent there is a relative linear scale on this particular point, it is almost the exact opposite of socialism.
 
During the last two fiscal years under W, we lost over 5M jobs.

During the past 14 months we've added over 2M private sector jobs.

That's not progress to some. Hmmmmm.
 
So, we've lost a net 3M private sector jobs and unemployment is at 9%.

Don't suppose you'd care to provide a link to this good news?
 
62,000 thanks to McDonalds.

Did you happen to notice the unemployment filings by any chance?

It's the old one step forward two steps back chachacha...
 
I appreciate the disagreements we all have about how and who regarding job growth. But April was a good month despite rising gas prices, not sure what the point of shooting holes in that is for opponents of the president. I guess to call us gullible fools who are led along by our liberal puppetmasters. That's cool, I guess.

I would think the argument from you conservatives would be that it should have happened sooner and faster. Or perhaps that someone like, I don't know - Herman Cain, would have engineered a recovery in 12-18 months that would have reduced the deficit/debt, lowered taxes, cared for the elderly while reforming entitlements, and created 3 million + jobs. :D
 
Johnny Utah said:
I'm not sure if this was a serious point or not, but I'll bite. How is allowing a company to keep more of what it earned (via capitalism) considered remotely close to socialism? To the extent there is a relative linear scale on this particular point, it is almost the exact opposite of socialism.
Click to expand...

It was pretty much tongue in cheek, but incentives and tax breaks are essentially corporate wellfare, no?
 
so the biggest restaurant chain in the world's employees don't count? Very interesting.

That's new FT hires not PT.
 
ONW said:
It was pretty much tongue in cheek, but incentives and tax breaks are essentially corporate wellfare, no?
Click to expand...

No, tax breaks simply allow them to keep what is more of theirs in the first place. The government is not giving the corporation anything, it is just taking less from the corporation. Corporate welfare would be something like a bank or GM bailout whereby the government is giving the corporation money over and above what the corporation earned on its own.
 
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