[TriLUG] OT - tech jobs on the rise in RTP?

[Mike M]

On Wed, Mar 10, 2004 at 12:21:37PM -0500, James Manning wrote:
> > So I say: Pull that money back from those fat cats and put it back into
> > play!  
> 
> fat cats don't have their money in play?  Here I thought they were
> investing it.  Heck, even if they just keep it in a checking account
> it gets invested, just by the bank instead of them directly.
> 
> Maybe I'm missing something - is $100 spent on food at a grocery store
> more valid than $100 that got invested in the grocery store itself?
> 
> Is investment not a valid form of cash flow?  Maybe it's been too long
> since my econ 101.

You've got your finger on the crux of the problem of tax rebates and 
their effect on the economy.  Money spent at Wal-mart gets
circulated at a higher velocity than money spent on assests.  

$100 invested in equities
at a discount broker yields $10 in commissions to the GDP, while
$100 spent at Wal-Mart represents a $100 increase in the
GDP.  

If the $100 is spent on a new business venture, then odds are on 
the entrepreneur having used outsourcing instead of creating jobs.

As you can see, much of the tax cut winds up outside the US regardless
of how it is spent.

The furor over taxes is just political hay.  The real problem is that
the first world economy worker has figured out that second and third world 
economy workers are winning jobs in competition.  Personally, I think
we'll just have to work harder for less money.

On ABC News last night there was a segment about a startup in Beantown
that ran an ad for s/w engineers for $40k/yr.  They got 100+ high quality
resumes.  The company is profitable. They created 6-10 jobs. 

-- 
Mike

When the correction first comes, we tend to underreact. While we do not 
like the surprise, we tend to think of it as maybe a one-time thing. 
Things, we believe, will soon get back to normal. We do not scale back 
our expectations sufficiently. It apparently takes years for this to 
work itself out. - John Mauldin