Fatter Profits -- And Job Growth -- Will Send The Recovery Into High Gear

Businessweek ^ | James C. Cooper & Kathleen Madigan

[narses]

To hear economic forecasters tell it, the trip from 2003 to 2004 will be like going to sleep in Kansas and waking up in Oz. And it won't be a dream.

After two years of a tepid, hit-or-miss recovery that offered no assurance of better times ahead, all signs now point to a year of strong, well-balanced growth that will generate a lasting upturn. Better balance is the key: between spending gains by businesses and consumers, between rising profits and household incomes, between productivity increases and job growth. Simply put: "Everyone wins," says David W. Berson at Fannie Mae (FNM ).

[narses]

Ping.

[Elliott Jackalope]

I really, really hope this is an accurate prediction, because the economy around here (Eastern Washington state) is weak at best. From what I've heard from other people it isn't much better in the rest of the country. If the economy isn't creating new jobs by mid-summer then President Bush just might find himself facing an unexpectedly strong challenge from the Democrats.

He might want to ask his dad about having high ratings from war efforts, only to face a challenge from a governor from a small state...

[narses]

Spokane - my town - is in trouble, but the Eastern Washington-North Idaho corridor is booming. Spokane could, if they'd shoot the liberal snits who dominate the Keystone Kops political scene.

[Elliott Jackalope]

I also live just outside of Spokane, but what I see even Liberty Lake and Post Falls aren't doing too great. There are a lot of tech firms in and around Liberty Lake, and they are currently employing a fraction of the people they were just a couple of years ago. Today's Spokesman-Review had a story about a former exec of a Liberty Lake telecom firm who was making six figures, and who is now struggling to just get by.

I'm looking into the possibility of buying a local business, but quite frankly I'm downright spooked by the local economy. There are a couple of businesses that seem like they might be good prospects, but at this point I'm thinking of offering maybe %50 of their asking price, and that's probably going to be paying too much!

[narses]

LOL, we must live in two different places. North Idaho has had a double - from 50,000 people to over 100,000 in the last decade. Sysco, Costco and other nationals are moving there. Eastern Washington is collapsing because of left wing nitwit politics. Too bad, so sad.

[OldPossum]

"Everyone wins," says David W. Berson at Fannie Mae (FNM).

Well, not everyone. Consider those that are running with a big "D" next to their names.

[Elliott Jackalope]

The funny thing of it is that when I relocated to this area I was seriously considering Northern Idaho as a place to go. That is, right up to the moment when I saw what the income tax rates were for Idaho. I couldn't believe my eyes, they were HIGHER than the ones in California! Scratch Idaho from the list, we ended up in the Spokane area.

Here's hoping that wasn't a mistake! However, one of the big issues that drove me from California was the stinkin' taxes. I was just NOT going to move from one high tax state to another!

[MonroeDNA]

Florida job growth is goint through the roof!

Doom & gloomers are deeply saddened.

[ETERNAL WARMING]

Simply put: "Everyone wins," says David W. Berson at Fannie Mae (FNM ).

LOL Will "everyone" be winning anytime soon? Some are still waiting for their win from the 90's boom. And let's not forget all the NAFTA jobs that would flood into America. Have they arrived yet?

[narses]

There are many flavors of taxation. If I owned a business, I'd be in Idaho. I'd be in control of my NET income. In Washington, we have a B&O gross receipts tax, an 8.5% sales tax and excise taxes of every nature.

[narses]

Pre NAFTA employment is LOWER than post NAFTA. The only losers? Union thugs.

[narses]

TDIDS!

[narses]

PS, I get W2 income, I chose Spokane County. My bad. I'm looking at land and business opportunities in North Idaho. Spokane is run by kooks.

[ninenot]

One of my best friends lived in Tri-Cities area until he died prematurely a couple of years ago. Worked at the nuclear dump--and we got a first-class tour of the place.

What a vacation destination!!!

Economy in Wisconsin sucks, all the major retailers started discounting heavily (25+%) about 2 weeks ago. Rumor has it that semi-trailers are becoming "adjunct" warehouse space; they cannot be unloaded--there's noplace to put the stuff.

But hey, productivity is up!!! And there actually are some real (not Administration-hyped) positive signs, among them being the price of copper is the highest I've seen in over 2 years. Usually that's a good leading indicator of industrial activity.

[Elliott Jackalope]

I'll be the first to let you know that Eastern Washington/Northern Idaho is some of the prettiest terrain you will find anywhere. I really like the natural gifts this area has to offer. Now if we could just put together something resembling an economy I'll be quite happy!

[Jorge]

I really, really hope this is an accurate prediction, because the economy around here (Eastern Washington state) is weak at best. From what I've heard from other people it isn't much better in the rest of the country.

Geez, gotta wonder where that 8.2% growth in national GDP is hiding?

The hottest rate of economic growth in 20 years and still people are complaining the economy is "weak". Too funny.

[ItisaReligionofPeace]

Sorry, but the economy is doing pretty well in most of the country...

[ItisaReligionofPeace]

Florida has no state income tax...

[narses]

Does it have a Death Tax?