One Reason that the Stock Market is Rising While Unemployment is Soaring

Daniel Gross points out that part of the reason that the American stock markets are going up even though unemployment is rising and the real economy suffering is because multinational corporations headquartered in the U.S. are experiencing strong sales abroad:---It could be that the notion the stock market is an accurate gauge of the domestic economy's temperature is outdated.---The fact that companies based in America are raking in profits from sales abroad is good for American workers, right? No. Gross points out that American workers don't benefit because a lot of the goods sold abroad by American multinationals are made abroad:---Well, at least the multinationals are paying a good chunk of taxes into the American economy, right? Not exactly. The Washington Post notes:--- In 2005, about 28 percent of large corporations paid no taxes... Dorgan and Sen. Carl M. Levin (D-Mich.) requested the report out of concern that some corporations were using "transfer pricing" to reduce their tax bills. The practice allows multi-national companies to transfer goods and assets between internal divisions so they can record income in a jurisdiction with low tax rates... [Senator] Levin said: "This report makes clear that too many corporations are using tax trickery to send their profits overseas and avoid paying their fair share in the United States."
3 commentscategory: Abuse of Power/Corruption karma: 161

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  1. #1    The Stock market is no longer an indicator of how the US Economy is doing.
    written by PHred42 since 10 days 23 hours 48 minutesPHred42
  2. #2    Apparently, Wall Street has never really been an indicator. We, Americans, just BELIEVED it was. Myths aren't they marvelous? Especially after they burst.
    written by Sparrows since 9 days 23 hours 7 minutesSparrows
  3. #3    A lot of people have retirement funds invested in the stock & bond markets. So, if the international trade means the market is going to go up as trade increases in the coming decades then Americans of all shapes & sizes should be hoping we get the regulations in place, so they can all invest and profit whether the domestic real economy is doing great or not.

    That's another reason we need universal savings accounts and mechanisms for everyone to invest those savings. Having such growth in wealth (and healthcare) will give everyone more protection against downturns in the domestic economy (call these shock absorbers).

    Along with that we must work toward building the domestic economy, particularly the energy sector. Let's build windmills, solar arrays, energy-saving houses & buildings and all kinds of energy-related things.
    written by MarkH since 9 days 6 hours 49 minutesMarkH
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