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FORWARD! TO MASS LAYOFFS!

Home - by - November 9, 2012 - 11:00 America/New_York - 10 Comments

Human Events

Obamanomics grinds grimly onward,  as CNBC brings word that on the day after the election, “Boeing announced a major restructuring of its defense division on Wednesday that will cut 30 percent of management jobs from 2010 levels, close facilities in California, and consolidate several business units to cut costs.”  It was sweet of them to keep that under wraps until after the election, wasn’t it?

And that’s not even the dreaded “sequestration” layoffs, which Obama broke the law to convince defense contractors to keep under wraps until after the election.  Those are yet to come.  The upside to living in a banana Republic with Party-dominated media is that life is full of “unexpected” surprises, to use the word that has come to dominate economic news in the Obama era.

Another round of layoffs announced on Wednesday came from Hawker Beechcraft, which announced it would close facilities in Arkansas, Arizona, and Texas, resulting in 400 jobs lost, while another 170 jobs would be cut from corporate offices in Kansas and Arkansas.

Also on the day after the election, the CEO of the Papa John’s pizza restaurant chain, John Schnatter, told a small community college audience in Florida that ObamaCare would likely result in cuts to employee hours by franchise owners seeking to escape the law’s mandates by eliminating full-time positions, a move he described as “common sense” and “lose-lose.”

Schnatter also predicted ObamaCare would add between $5 million and $8 million to his business costs (which is fine, because he’s an evil rich guy who supported Mitt Romney for president, and we all know that truly patriotic job creators happily pay for increased business costs out of their own pockets) and that it would add 10 to 14 cents to the cost of his pizzas, which is a bummer, but under Obamanomics theory is totally unrelated to the process of extracting that “fair share” from idle plutocrats.  Then he headed off to help out with a telethon for Hurricane Sandy victims and write the Red Cross a million-dollar check, but we all know that private charity is irrelevant, as only Big Government can save us from big storms.

The Huffington Post relays the thoughts of Fox Business Network corresponded Charlie Gasparino, who says Wall Street executives are “in mourning” after Obama’s re-election, because “they know that Wall Street is going to lay off a lot more people.”  About 10,000 of them by the end of the year, in fact, if the New York state comptroller’s estimate is accurate.  It’s not a big deal though, because those people are evil.  Everyone knows that investment capital and consumer loans should be redistributed by selfless government agencies, not greedy bankers.

According to Gasparino, things could look up if “Republicans and Democrats happen to reach a long-term budget deal similar to Simpson-Bowles,” which could mean “the market is going to go through the roof” to “Dow 20,000, easy.”  But he knows perfectly well that’s not going to happen.  We’ll more likely get the usual: big tax increases right now, combined with vague promises of largely symbolic spending cuts at some indeterminate point in the future.

 

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» 10 Comments

  1. matt

    November 9th, 2012

    http://www.google.com/finance?client=ob&q=NASDAQ:SWHC

    On a brighter note, at least firearm sales are through the roof

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  2. Bad Brad

    November 9th, 2012

    Here’s a pretty cool link that track daily layoffs. I’m not sure where the cut off is as far as size of corporation, but for every job cut they list here is probably responsible for a least one from a vendor.

    http://www.dailyjobcuts.com/#.UJwVDQHUOEh.facebook
    /

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  3. Marqsheb

    November 9th, 2012

    May those who voted for Obama be the first in their companies and jobs to be let go. Elections have consequences.

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  4. AQT214

    November 9th, 2012

    A guy that had been at my company 20 yrs was just let go. He did the work of 3 people and was always pleasant to work with.

    Unfortunately, he was also an Obama supporter and voter. Now he’s one less bit of health benefits and taxes the company has to pay.

    For him, now, it has gone from a recession to a depression. I don’t think he regrets his vote at all, nor does he make the connection. And neither will those who are next on the block.

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  5. ? everything

    November 9th, 2012

    marqsheb, there was a letter (satire I am sure) months b4 the election circulating on the internet, from a CEO who memo’d his employees. It stated due to rising costs associated with healthcare with the passage of Obamacare he would need to layoff to keep his company healthy & afloat. so in democratic fashion, he went to the parking lot & any car that had an Obama bumpersticker, those were the ones laid off.

    my momma always said “careful what you ask for.”

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  6. Wyatt, Insensitive Progressive Jerk

    November 9th, 2012

    What many people – myself included for a substantial period of time – fail to realize is that economies are largely based upon trust and confidence. Your wealth is tied up mostly in things you cannot see and which you must trust to be valuable – paper money, bank accounts which mostly in computer data banks, minute fractional ownership interests of large companies, etc. etc. Even tangible assets like land count as wealth only because society recognizes that you, at least theoretically, have the exclusive right to possess that property.

    There is no question this election clearly showed the line of demarcation between those who contribute, and those who demand for free. And there is little question that the freebie crowd, at least for now, won. The talking heads can blame the lack of economic recovery on whatever external factors they want – Europe, Wall Street greed, whatever – but the fact remains that when Democrats are in charge, there is less trust and confidence that our society will recognize and protect earned wealth. This is exacerbated by Obama’s calls for redistribution, his lack of concern for the rule of law, and the left’s call for more government control.

    Don’t get me wrong – I want the economy to recover because it’s good for everyone, including me. But I don’t think it will, and in fact I think it will get worse because the producers of this nation are starting to consider the government the enemy, and the trust and confidence required are not present.

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  7. Xavier

    November 9th, 2012

    @Wyatt

    Good post, again. My inner picture of the situation is a child’s see-saw with leechers on the left and overburdened taxpayers on the right. The government has to keep the see-saw balanced – not enough leechers and they’re voted out of office, not enough taxpayers and they won’t have the funds to run the government or pay off the leechers. So it’s a very fine balance, usually, but every 4 years it needs a nudge to keep the leecher side in the air – probably to be provided by the media.

    The result is an economy that will be suppressed all the time. Any wealth created on one side will be offset by a new entitlement on the other. Individual companies may find a way to rise above the median but the economy as a whole will remain flat – essentially a zero sum game.

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  8. scr_north

    November 9th, 2012

    I wonder whether at least some of the employees at the MSM are ashamed at what they did over the years to protect Obama and hide the truth from those of the people that would understand the implications.

    There won’t be any actual journalism practiced in the US (with the exception of some of Foxnews) until two things happen. The journalism schools (or at least some of them) are cleaned out of the left, liberal professors and teachers that are teaching their students how to shape the news to fit the left agenda. In fact, I suspect that a lot of these kids come in to these schools with an open mind (or close to it) and are indoctrinated into the left over their four years.

    The second is that at least one or two of the outlets need to be taken over by someone like the Koch brothers (assuming they have the money) who replace most of the reporters and editorial staff with real reporters who report the truth regardless of who it damages. The problem with that is that most of these “public” companies have created special multiple controlling shares that are held by the owners and unavailable to the public.

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  9. Stranded in Sonoma

    November 9th, 2012

    Here in CA, the socialists got Props 30 and 39 to pass. 30 is an increase in the income tax for, yes…schools! Never mind that layoffs are happening all over, the brain-dead knuckle-draggers voted to increase taxes on everyone in the worst economy in 50+ years. They claim it is going to generate revenue for the schools. My questions always were, “What if 0bama gets re-elected and the economy really tanks and unemployment goes up? With fewer people working, how can there be an increase in revenue? Why don’t the schools just do what the people are doing and tighten their belts and spend their money more wisely?” All socialists see the tax rate going up and therefore that means more revenue. They have no comprehension of the Laffer Curve.

    Prop 39 — Requires multistate businesses to pay income taxes based on percentage of their sales in California. Let me see…higher taxes would mean higher prices. But not just in CA but in every state that company does business. In other words, you schlubs out there in flyoverland will be paying CA taxes. You can thank the 5,354,010 socialists in CA that voted for it. The 3,559,852 intelligent people were looking out for you too.

    As Bruce Willis said in Die Hard after he threw the body out the window, “Welcome to the party, pal!”

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  10. Stranded in Sonoma

    November 9th, 2012

    @scr_north — When the layoffs really start happening, people will cut back. And one of the first things they will cut is their TV cable/satellite service. It’s really not that necessary. When overall viewership goes down that means less people will watch the propagandists. Less revenue for them and then they will face cuts and layoffs too. Even then, they won’t blame 0bama. No matter how easy it will be to connect the dots.

    Of course, that just means 0bama will bail them out and there will be no way the enemedia can spin that they will be, at that time, wholly owned by the gov’t. At first they will be happy to spew the socialst propaganda. Then when they see the lies, they’ll realize how bad it actually is. And it will be too late.

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