Wednesday, August 1, 2012

Manufacturers Whine, Whine, Whine. Politics is hurting business, and not Austerity or DEMAND?

Manufacturers are whining about the political environment and the uncertainty around the well-defined benefits of the Affordable Care Act and a return to Clinton level taxes.

Really, that’s why demand is low? In the article below, Manufacturers continue blame “someone else” for the austerity agenda that has taken money out of the pocketbooks of small businesses and consumers. Demand. Simple.

But the article itself even lists the actual reasons for the slowdown, and not the spin;
jsonline: Economic shocks from the rest of the nation and overseas … Higher energy prices also produce an "automatic drag" on the economy … economic growth is weakening amid the recession in Europe and a slowdown in Asia … economic uncertainty - and in some cases the drought - have taken a toll on manufacturers. "We have seen dealers in our industry close their doors as a result of the dry weather," said Dan Ariens, president of Ariens Co.!
Even the Financial Times report on China's slowdown destroys the idea it has anything to do with
U.S. politics:
China’s manufacturing sector deteriorated slightly in July, confounding expectations for a recovery as the government steps up support for the weakening economy.

But instead of the above actual reason’s for the economic slowdown, all logical, big business is playing up the political angle and the free market "uncertainty."
Manufacturing slows amid political uncertainties: Manufacturing in southeastern Wisconsin and northern Illinois shrank in July for the first time in three years, with orders from the United States, Europe and China dropping as business seems almost paralyzed until the fall election is over and economic policies are addressed.
Economic policies aren’t being addressed because Republicans are refusing to include tax increases with spending cuts. But it’s not the reason for a slowdown in business.
That's according to data from a monthly survey of manufacturers released Tuesday by Marquette University and the local chapter of the Institute for Supply Management. "We are distracted by a very uncertain political environment," said Doug Fisher, director of the Center for Supply Chain Management in Marquette University's College of Business Administration. "Whether it's health care or tax law, people just don't know what to expect." Doug Fisher, director of the Center for Supply Chain Management  said. "Companies want to know more if they're going to make investments." 
They can't make "investments" if they don't have demand and a reason to expand. Let's start making sense.

1 comment:

  1. Does Doug Fischer realize how ridiculous he sounds? Politics affects the supply chain -- really?

    Demand is down so the obvious response will be to cut wages. It's like the Great Depression never happened.

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