What's Wrong With This Picture: Jobless Recovery Edition

Edward Niedermeyer
by Edward Niedermeyer
what s wrong with this picture jobless recovery edition

America’s “ jobless recovery” is a strange economic phenomenon: though businesses are returning to profitability, jobs are not trickling down to lift all economic boats. Though the causes and consequences of this economic conundrum are beyond the scope of a humble car blog, a snapshot of luxury/premium brand sales (via Truecar) show a similar dynamic at play in the world of car sales: luxury sales are recovering while year-to-date sales of mainstream standbys like Honda and Toyota are sitting flat (up 1.1% and 1.4% respectively). Of course the other dynamic at play in the first three quarters of 2010 is the recovery of domestic brands, but even among those successes, the luxury-premium brands are doing best (witness Cadillac sitting atop this chart, and Buick’s even faster recovery (up 57.5% YTD)). At least if you look at year-over-year percentage improvement rather than overall volume levels. Unlike past eras of economic and energy uncertainty, luxury cars, not spartan compact pickups and fuel efficient hatchbacks, are spurring recovery in the auto sector.

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  • Ronin Ronin on Oct 19, 2010

    Careful with playful numbers. Companies taking on a ton of deep debt "just in case" suddenly show a much stronger cash position. Companies dumping employees suddenly reduce their expenses mightily rendering a pretty hot bottom line. Nightly MSNBC reports show how revenue of this or that company 'beat estimates,' as though 'estimates' were any measure of profitabilty. With few exceptions, this accounts for most of the 'businesses returning to profitiability."

  • Shiney2 Shiney2 on Oct 19, 2010

    Welcome to the legacy of supply side idiocy. Demand? We don't need no stinking demand! Why as soon as corporations and the rich have money they will go running around and hire lots of people and the economy will boom. Trust us.

  • Obbop Obbop on Oct 19, 2010

    My opinion is worthless and seems to mainly create anger in others so I pass the torch on to others. All I ask is that all USA citizens OBEY. And that my bought-every-once-in-awhile lottery ticket is a multi-million dollar winner allowing the discretionary income to frivolously put some wealth into circulation by purchasing an already-restored 1969 2-door Dodge Dart with a small V8 or an early 70s Plymouth Duster with a small V8. Just a basic old Mopar to drive in the July 4th parade and the occasional drive in the country. Obey your betters. It is the "patriotic" thing to do.

  • Zackman Zackman on Oct 19, 2010

    Let's see now: Fleetofwheel: Yeah, 40 years ago, that AM, one-speaker radio cost you $74.00 for the privilege, too! Ronin: Of course, and when companies set sales "budgets" and don't meet them, they claim they are losing money, when the so-called "budget" is nothing more than a made-up number to start with. obbop: You ain't going nowhere! Who disagrees with you? One guy? Big deal. I throw out sound bites, you toss out stuff that makes one scratch their head and say "what?" and then try to decipher your words! PRICELESS! TTAC has great commentors.