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Wall Street, the archenemy of the Obamanites, can lift us out of this disastrous mess by forcing U.S. corporations to maintain profit growth by hiring workers. Eventually, a virtuous cycle of employment-consumption can be generated.

Most recently, over much of the 2000s, Wall Street helped build the most efficient economy the world has ever seen, created and captured trillions of dollars of real wealth in the global economy, distributed that wealth to America's masses, and diversified the risk globally.

The Obamanites are meddling in too many things they don't really understand.

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Diminishing returns?:

Productivity weakens in second quarter
Aug 10, 2010

The productivity report showed employers pushed the hours worked by employees up at a 3.6 percent annual rate in the second quarter, more than triple the first-quarter increase. It was the sharpest rise in hours worked in more than four years.

Productivity declined at an annual rate of 0.9 percent after rising at a revised 3.9 percent pace in the first quarter.

"If working people longer and harder is no longer bringing large returns to businesses, executives may have to find other ways to expand production," said economist Joel Naroff of Naroff Economic Advisors in Holland, Pennsylvania.

"They might actually have to hire more workers," he said.

The drop in productivity reflected a step-up in the total number of hours worked and a slower pace of economic growth.

Separately, the Commerce Department said June wholesale inventories rose 0.1 percent as sales dropped 0.7 percent.

It was the first drop in productivity, or hourly output per worker, since the fourth quarter of 2008 and suggested corporate profits could start coming under pressure.

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The pace of hiring will likely pick-up. The question is how fast?

It'll likely remain slow until after the election when the Obamanites (for lack of a better term, which includes the Pelosi House) are neutralized to at least stop the damage. Perhaps, between Nov and Jan, uncertainty about taxes will be lifted.

Nonetheless, there's a lot of ground to make up (from article):

"Thirteen months into recovery from a deep recession, this is disappointing. The economy must add 13 million private sector jobs by the end of 2013 to bring unemployment down to 6 percent. U.S. President Barack Obama's policies aren't creating conditions for businesses to hire those 320,000 workers each month, net of layoffs."

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A bubble isn't formed unless it bursts. The housing bubble wouldn't exist if there was sufficient liquidity.

The education "bubble" will burst when millions of net jobs are created in a very short period, or 20 million net jobs are created within a few years.

How many net jobs were created over the last 10 years? Zero. Millions of net jobs have been destroyed. Americans attend school when there aren't jobs.

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Those government officials who shut down the lemonade stand should be fired, and their budget reduced, because there's too much regulation.

I don't know where the mass hysteria came from. However, when I hear people say saving a wild pelican (during the oil spill) is worth $1,000 to $10,000, I just can't imagine them actually writing a check for $1,000 or more to save one pelican. Yet, in reality, everyone is spending too much money on excessive regulations.

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The problem is everyone wants government services, but they don't want to pay for them.

I guess, most people expect someone else to pay the bills.

If everyone had to pay their equal share, they either couldn't or wouldn't want to.

From 2006 article (no longer on web):

"GDP, total output, of the U.S.A. is $12.6 trillion, which divided by 300 million, yields a per-capita GDP of $42,000.

The cost of regulations in the U.S. is about $1.2 trillion, or $4,000 per person. The government burden, taxes plus regulation, is thus over $16,000 per person."

Since 2006, there are more regulations, including major regulations, e.g. financial reform, CAFE standards, health care reforms, "green" energy reforms, etc.

Also, I may add, U.S. GDP in 2010 is not much higher than 2006 (particularly, given population growth). Regulations have gone way up, and taxes will soon follow.

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There are also unintended consequences to regulated markets, including deaths.

We can't really say government helped build a better internet than the free market (Microsoft at one time wanted to replace the internet).

CAFE regulations stopped tens of thousands of Americans from pursuing happiness:

"The primary unintended consequence of CAFE regulation has been its negative impact on occupant safety. The effect of ever-increasing fuel economy standards has been an accelerated trend towards smaller vehicles (faster than the market would have trended if left alone).

A 1999 USA Today analysis estimated that from 1975 to 1999, approximately 46,000 people died in crashes they would otherwise have survived had they been driving larger vehicles."