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alstry (35.17)

THE AMERICAN ECONOMY IS THE DEFICIT

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April 04, 2011 – Comments (0)

  The below article could have one of the most misleading headlines ever published inferring that McDonald's wants to hire 50K new employees in April.....

http://www.marketwatch.com/story/mcdonaldsr-and-its-franchisees-look-to-hire-up-to-50000-employees-nationwide-2011-04-04

McDonald's has 14K franchisees, my guess is it hires and fires about 50K every month through normal employee turnover.  But desperate times require desperate headlines to maintain the nation's illusion of prosperity.

The article also relates the following:

McDonald's and its franchisees will spend more than $518 million more in wages and salaries in the coming year, an average of more than $1.4 million every day....

The addition of 50,000 potential hires translates into $54 million more in payroll taxes contributed to the broader economy. Using a statistical multiplier effect, 50,000 new workers will generate almost $1.4 billion in annual spending - more than $3.5 million per day.

It appears that McDonald's uses a multiplier of approximately 3X for every dollar spent on salary towards increase in spending/GDP.  The fact that these are low paid workers and a much higher percentage of their incomes are spent on commodity based food and fuel decreases the mulitiplier.

Once you factor that our PRINTED deficit comes from FIRST DOLLAR government spend, and a greater tendency to services and higher incomes, Alstrynomics estimate of a 4-7X multiplier seems very reasonable.

With our deficit exceeding $1.6 trillion dollars this year, it clear that the vast majority of the American GDP can be directly correlated to the deficit.....and without the deficit, America essentially has no economy once you factor the defaults arising from the massively contracting economy on the back of a $50 TRILLION dollar total public and private debt.

When everyone's illusion of prosperity is sucking off a government deficit, it is a www.udderworld.com

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