Tag Archives: recovery

Tax cuts won’t spur the recovery

Dean Baker, co-founder of the Center for Economic and Policy Research, says Romney economic advisers Kevin Hassett and Glenn Hubbard got it all wrong in a Washington Post opinion piece published Wednesday.

Lowering marginal tax rates, as Hassett and Hubbard suggest, would do nothing to boost the economy, Baker writes in a commentary on econobytes.

“In short, it is difficult to see how the tax policy being promoted by Governor Romney will have much of a positive impact on investment and growth, especially if it is accompanied by further cutbacks in government spending. While the Obama administration’s stimulus policy was clearly inadequate to make up for the shortfall in demand created by the collapse of the housing bubble, Governor Romney’s plan is not likely to do any better,” Baker says.

No surprise that the founder of a progressive think tank would differ from the Romney camp. Nonetheless, Baker offers an interesting counterpoint to the Hassett-Hubbard suggestion that lower marginal tax rates are need to boost business investment.

Click here for Baker’s commentary.

Click here for the Hassett-Hubbard commentary.

Knoxville economy 15th on metro recovery index

Knoxville’s economy continues to recover faster than most other metropolitan areas across the country, despite slipping slightly in the latest Brookings Institution rankings released today.

Metropolitan Knoxville’s recovery performance ranks 15th on Brookings’ most recent MetroMonitor index of economic recovery – down from 12th in the previous quarterly index.

The MetroMonitor report ranks the pace of recovery in the 100 largest metro economies based on job creation, unemployment rate, metro economic output and housing prices.

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More signs of strengthening economy, job creation


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New reports showing retail sales growth, increased industrial production and continued investment in business inventories are clear signs of an improving economy.

And this suggests we could see accelerated job creation in the coming months, says John Challenger, CEO of the outplacement firm Challenger, Gray & Christmas Inc.

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Americans drink to an improving economy

Americans feel better about the economy and they’re buying more premium-priced spirits to celebrate.051911jack_atb_01.JPG

The Distilled Spirits Council of the United States on Monday reported increased revenue, volume and record exports in 2011.

Revenue and volume have returned to pre-recession levels, driven by an improving economy, consumer confidence and product innovation, the council said in its annual industry review for Wall Street analysts.

“These results show that the hospitality industry is helping drive the national recovery and job creation, but it remains critical that legislators don’t derail future economic growth through higher taxes,” said Cressy.

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Firm offers free job-search advice on Dec. 27-28

Job creation is showing some improvement, but millions of Americans are still out of work. To help job seekers find work, the global outplacement firm Challenger, Gray & Christmas Inc. will again offer free job-search advice to unemployed workers.

The firm’s 26th annual national job-search call-in will be held Dec. 27 and 28 from 9 a.m. to 5 p.m. on both days.

The phone number is 312-422-5010.

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Alcoa Inc. getting ready for rebound

Just back from vacation and still catching up on local company news, but a Forbes story on Alcoa Inc.’s recent reorganization of its midstream businesses caught my eye.

“Aluminum demand is on the rise, primarily driven by the increased usage in the automotive and aerospace industries globally as manufacturers push to make lighter, more fuel efficient vehicles. Aluminum is also witnessing huge demand from its usage in electronics and household items,” Forbes says.

Despite the still sluggish recovery,  Alcoa apparently sees good times coming and it wants to be ready when the economy rebounds. In any event, the announcement has me wondering what impact — if any– the reorganization will have on the company’s Blount County operation.

Forbes: Emerging Markets Pushing Alcoa Stock Price From Hamilton to Jackson

Alcoa news release: Alcoa Reorganizes Midstream Businesses Around Five Key Markets to Accelerate Growth

Increased business travel could boost Ruby Tuesday

 

Ruby Tuesday’s stock price has been on a downward spiral since the first of the year as the recovery has slowed and higher gasoline prices have taken a bite out of consumer budgets.

Ruby Tuesday

Ruby Tuesday

But there is reason to expect better times ahead for the Maryville, Tenn.-based company.

“Chains like The Cheesecake Factory Inc., Cracker Barrel Old Country Store Inc. and Ruby Tuesday Inc. could benefit from the return of business travel,” the Associated Press reported today, citing two Keybanc analysts.

 

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UPS, Ford signal improving economy, or as Fox says, the sky is falling

Watching Fox news at the gym every morning is good motivation for burning calories, but I always need a reality check when I get to work.

Here’s a dose of reality that I didn’t see on Fox this morning:

Ford posts best 1Q profit in 13 years

UPS raises 2011 forecast as 1Q profit soars

Consumer Confidence Index rises in April

Together, these reports indicate that consumers are willing to spend, they’re feeling somewhat better about job creation and businesses are reaping the benefit.

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Job market improving for college grads

 Job prospects for new college graduates are the best they’ve been in years, global outplacement consultancy Challenger, Gray & Christmas Inc. says in a report released today.

Competition for entry-level positions will be tough, but companies are hiring again.

“Entry-level hiring has not returned to pre-recession levels, but this year’s graduates should find markedly improved job-search conditions. Colleges and universities around the country are reporting increased on-campus recruiting and surveys of employers indicate more graduate hiring, as companies rebuild their bench-strength after massive layoffs during the downturn,” Challenger, Gray CEO John A. Challenger said in a news release.

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Recovery getting harder to deny

It’s getting harder and harder for potential presidential candidates masquerading as “news analysts” to yammer about how bad the economy is.

Without question the recovery is taking hold. Corporate America is creating jobs, the national unemployment rate is edging lower and incomes are rising.

The road to full recovery will be long — it will be years before the housing market bounces back — but the economy is headed in the right direction.

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