Will Obama see truth of job creation?
Memo to president: When companies make more money, they hire more workers. It's that simple.
The meeting at the White House this week has to be different. Many of the CEOs who have gone to see President Barack Obama so far have told me the meetings are superficial, totally done for the media. Photo ops. They are not substantive. They say the president doesn't understand how big business works. He thinks it is parasitic and all about profits, not about doing the right thing.
That's why Wednesday's meeting is so important.
We need the execs to leave with more than a photo. We need them to say that he listened and that he is going to take action on what they have to say. I just don't know, ideologically, whether Obama can accept the idea that hiring is a byproduct of CEOs trying to make a lot of money for themselves and for their shareholders.
He seems to think that the process of making a profit may actually be wrong because it doesn't necessarily help labor. Or at least he seems to have felt that way ever since he took office. Post continues after video:
That has to change. When he meets with the CEOs, he has to understand that the corporate profit motive drives the progress and success of Brazil and China and India. He has to understand that those countries, which are ostensibly to his left, are actually much more pro-capitalist and pro-shareholder. That few in the media or politics are willing to say this smacks, to me, of the bias we are all too aware of.
Obama seems not to understand that it is NO COMPROMISE to help people make money in their 401k plans. That there is no sin in allowing people who own stock to make money. It is not like making some rotten deal with the GOP -- it is about doing what is necessary to get the country moving.
Until he gets that ethos, these meetings will mean nothing.
Let's hope this is the week when he changes. If he does, this market could have a nice run, simply because the president will not stand in the way. That would be a first.
It is time for a first.
Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.
Follow Cramer's trades for his Charitable Trust.
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daggies and mirage, if you bother to read the excellent responses posted after yours, you will no doubt see that you and cramer are in the vast, clueless minority when it comes to economics. you and cramer all write BUT YOU KNOW NOTHING, NOTHING!!!
pre-reagan CEO's made 43 times what the average worker made: today they make 400 times the average worker wages. this "profit growth" you speak of was done with smoke and mirrors and financial terrorism under you very noses, yet you continue to be toadies for the elite rich. this "profit" was only accomplished by bankrupting our country from a debt of less than $3 trillion with the US a respected world superpower, to over $10 trillion in debt and the US seen as an out of control mass murderer by much of the world by the time bush left office.
get a clue. go read or watch "shock doctrine" and you will see how this began with friedman, chile, argentina, russia, iraq, and now the US itself. CAPITALISM RUN AMOK AND PUTTING THE SOCIALISTS INTO PRISONS WITH TORTURE AND "DISAPPEARANCES" IN THE TENS OF THOUSANDS DOES NOT WORK.
cramer, you have once again shown your utter allegiance to goldman sachs and the entire crony-capitalism elitist network that has raped and pillaged America for personal gain and greed. just disgraceful.
What kind of economics class did idiot Obama take?? 3rd grade?? As an american adult I invested my money in a 401k which is now half of what it was when I retired at age 50. He acts like he doesn't understand how things work. Companies have to have orders so they can hire workers we need jobs yes but not at a cost of driving these companies into bankruptcy by hiring people they don't need.
Democrats like myself don't hate business - we hate bad business that does long term harm to our country and its people. Let me simply state this - no Democrat needs a lecture on business or economics from any Republican. I'm a democrat who's made a lot of money in private enterprise - I made a lot less while GWB and his Republican cronies ran things...
So many problems Jim, but I'll stick with my main one.
If you're so concerned about stocks and profits, why are you so unconerned with the demand side of the equation? You kee hearing it: "profits are up" so hiring shouldn't be the problem it's being made. Pointing this out gets a lecture in that business won't expand unless it sees the demand to expand for, putting us in the chicken and eggs scenario. Jobs won't be created without demand for goods, demand for goods won't go up until people earn a wage that gives them money to buy goods over and above their bills. (a functioning safety net to keep them from "living in poverty" paranoia aslo wouldn't hurt.) I've said it repeatedly: stocks rise from profits. Profits come from sales. Sales come from wages. Take away the ability of the consumer clas to spend, you strangle your own portfolio.
Beyond that, I think the private sector need to act more businesslike in this and spell out exactly what hiring and expansion Obama is keeping them from doing. They wouldn't invest money in someone providing no details or business plan. Why should the government cut a blank check on big promises and no garuntees?
Cramer should know better than to tell so many lies. Corporate CEOs could be hiring millions of workers this year (2010), but they think their mission is to make the White House look bad. The DOW went from 7000 to over 11,000 in the first 2 years of this administration - the crippling recession was stopped in June 2009 - Christmeas retail sales are booming. And yet, Cramer and his greedy ilk continue griping and whining.
The immoral corruption of conservatives is going to destroy capitalism.
I love when Republicans try to rip the performance of Obama with pathetic excerpts from corporate backed news stories and other lame fear tactics.
Republicans love to talk about how bad Obama is doing helping us try to recover from the Recession. Earth to Republicans, we are "recovering" from an 8 year Republican administration which panicked after 911 and made terrible decisions which put us in the situation we are in today. Terrorists knocked down our largest building in America, it was not the end of the world. Instead of letting the economy correct itself, post 911 saw George W making the worst decisions ever!
Obama did not cause current unemployment rates, Bush did when he allowed Greenspan to double the prime interest rate in a span of 18 months in 2005 through 2006, crippling the countries financial structure, (after his 2nd term started). Maybe he should have been more aware of the avg. americans ability to pay their mortgages when rates double in a year and a half. I guess he was more concerned with "bombs bursting in air" over the middle east.
Active RIA - what are you talking about: "SS, that program was never, ever, never, never, never intended to be a retirement program".
Yes it was. The Social Security Act of 1935 and its amendments over the years are the OASDHI - old-age, survivors, disability &health insurance program. It contains language referencing "retirement benefits", "retirement age", etc.
There are millions of people living off of SS as their retirement fund. You just tell people that in order to scare them so that they will pay you to help them invest.
What you mean to say is that it won't provide you with a lavish lifestyle if one wants to travel, play golf, and sip $5 drinks by the pool.
Come on Cramer, we the people are wide awake and we know for a fact that greed and capitalism are synonymous. If CEOs could make profits without hiring, they would do it. The fact that they offshored so many of our good paying jobs and are constatnly trying to kill labor unions is all the proof we need.
The President is not there to follow the lead of the CEOs, they are there to follow The President's lead. They need to publicly apologize to the people they took for billions and start the hiring process to restore America to it's glory as a leader of the free world. Economically, philosophically, in science and tech and education and social reform. Do it now, CEOs or you will be forever hated.
CEOs are trying o blackmail AMerica into giving them another trillion dollars to stuff in their fat accounts. The Brits are taking on their monarchy in the street - it could be that the time is here to give the CEOs what they deserve.
Cramer is told what to write by his corporate masters - MSN should stop paying for his crap that tries to rewrite the true events that led to economic disaster.
Cramer is told what to write by his corporate masters - MSN should stop paying for his crap that tries to rewrite the true events that led to economic disaster.
The CEOs think they're entitled to defraud the public and take away the livelihood of workers. Those unemployed workers would rather be doing the jobs they had before being laid off by management. Why? Because management has forced the workers to shoulder the RISK... the CEO and investors get the wages taken from families because corporate masters think they are entitled to rob America, to enrich themselves.
Obama's behavior is a new social justice mentality that redefines the term "greed". In other words, who is really the greedy one? People that simply want to keep what they earned, or those who want to take from you something they did not earn.
It is not about a safety net anymore, it is about "entitlement". The worst form of greed is thinking you are entitled to something.
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