News Analysis: The latest “Eurostat” European Unemployment Rates are for November, 2013. They evidence a 12.1% which consists of lowest rates in Austria (4.8%), Germany (5.2%) and Luxembourg (6.1%). The highest Unemployment Rates were in Greece (27.4% in September 2013) and Spain (26.7%).
November, 2013, had the unemployment rate increased in fourteen Member States and fell in fourteen compared to November, 2012.
The approximately 6.7% Unemployment Rate in the First Quarter of 2008 compared to the 12.1% current figure does not bode well for Europe. One must ask: “What Economic Policies have to change to gain Momentum in these Trying Financial Times?” and “Are Stock and Bond Investors REALLY aware of the Enormous Number of Europeans (particularly under 25 Age Group) without Jobs?”
A person of Wisdom in any Manufacturing Business would realize that there are substantially fewer people financially capable of buying “Hard Goods” in particular and “Soft Goods” in general. Thus, the “Higher Price-Point” Manufactured Items get short shrift by the Public: Expensive Appliances, Automobiles, Computers, Homes, Large Screen Televisions, Personal Pleasure Boats, Small Private Aircraft, and the like. Each of the aforementioned can contribute significantly to a Country’s Gross Domestic Product when produced and sold in large numbers; that scenario is not probable now in the slightest, many Economists declare.
It is an Economic Truism that: “Higher Government Tax Rates For Private Manufacturers Create Lower Profitable Production For Job Growth”. Corporations do not need their “Silent Partners” (Federal Governments) ‘extorting’ more money from them during these times of economic hardship. Instead, Tax Rates should be reduced so profitability can increase for growth of Manufacturers. “Lesser Is Better” applies to both Corporate Taxation Rates and well as Unemployment Numbers.
To also assist in Unemployment Reduction, those Manufacturers trying to sell the products in the Middle East and Asia should be encouraged to do so through additional Tax Incentives to help cover their added costs.
One must also ask: “Have the ‘Bubble Masters’ been working overtime to create the present Stock Market (Misplaced) Values when there is little substance to the Price/Earnings of most Corporations?” A lot of the Stock Price Multiples are suspect. And, if one projects the present Unemployment Rates in Europe to be largely unchanged in 2014, a “Sham” Market is evidenced, (many Forensic Accountants would say). “The Stock Market Looks Six Months Ahead, Not At The Present” is the Mantra. In the present state of the various Stock Exchanges Prices, one might be wise to “Look for the ‘Bernie Madoffs’ out on their Floors”.
“Caveat Emptor.”
Reality.
Reference: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/3-08012014-BP/EN/3-08012014-BP-EN.PDF
