eCharcha.Com   Support eCharcha.Com. Click on sponsor ad to shop online!

Advertise Here

Go Back   eCharcha.Com > Current Affairs > Economy

Notices

Economy Fiscally fit?

Reply
 
Thread Tools Display Modes
  #1  
Old May 6th, 2005, 06:46 AM
dhurandhar's Avatar
dhurandhar dhurandhar is offline
Dhureshvar Dhuracharya
 
Join Date: Mar 2001
Location: Omnipresent
Posts: 13,276
dhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond repute
how come construction sector is hiring??

I am puzzled by some contradiciting information here

On one hand, the economy is doing poorly...jobs are lost in manufacturing sector blah blah blah

On the other hand, construction related jobs are up everywhere...and this sector is hiring people

So my question is that if most people are losing money...how come the government and private sector is coming up with money for construction with a boom in construction sector?

Also, in face of sluggish economy, the housing market is still going strong...with people buying houses left and right (atleast near major metropolises)?? where does the money come from?

I think I have an answer but I will not post it now...else it would be monologue
__________________
Hum woh hai jo vidhaata ka bhagya likhte hai
Reply With Quote
  #2  
Old May 6th, 2005, 06:54 AM
Xandu's Avatar
Xandu Xandu is offline
X
 
Join Date: Aug 2000
Posts: 1,179
Xandu is on a distinguished road
Re: how come construction sector is hiring??

well believe it or not.. at some point when you saved enough for a 20% down payment, rents become more expensive than a condo with similar or better amenities. excluding the bay area, san diego.. homes are still very affordable for the most part.
Reply With Quote
  #3  
Old May 6th, 2005, 08:33 AM
dhurandhar's Avatar
dhurandhar dhurandhar is offline
Dhureshvar Dhuracharya
 
Join Date: Mar 2001
Location: Omnipresent
Posts: 13,276
dhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond reputedhurandhar has a reputation beyond repute
Re: how come construction sector is hiring??

Quote:
Originally Posted by Xandu
well believe it or not.. at some point when you saved enough for a 20% down payment, rents become more expensive than a condo with similar or better amenities. excluding the bay area, san diego.. homes are still very affordable for the most part.
I agree with your reasoning but then if people are living in precarious economy, how can they risk to buy a home and be pegged at a location? What if they lose their jobs and the new job is at a distant location?
__________________
Hum woh hai jo vidhaata ka bhagya likhte hai
Reply With Quote
  #4  
Old May 6th, 2005, 09:05 AM
Qn_of_sunshine Qn_of_sunshine is offline
Senior eCharchan
 
Join Date: Apr 2002
Location: VA, US
Posts: 687
Qn_of_sunshine is a glorious beacon of lightQn_of_sunshine is a glorious beacon of lightQn_of_sunshine is a glorious beacon of lightQn_of_sunshine is a glorious beacon of lightQn_of_sunshine is a glorious beacon of lightQn_of_sunshine is a glorious beacon of light
Re: how come construction sector is hiring??

The real estate market is booming in some areas. If you buy a home at a prime location, you will easily make a profit if you had to sell. And if someone had to sell within two years of buying the place cos they lost their job , they won't even have to pay taxes on the capital gain. Its a win win situation for most ppl right now. I can't believe I'm gonna say this, but its thanks to Bush.
Reply With Quote
  #5  
Old May 6th, 2005, 08:38 PM
UMA UMA is offline
Senior eCharchan
 
Join Date: Apr 2003
Posts: 821
UMA is infamous around these partsUMA is infamous around these partsUMA is infamous around these partsUMA is infamous around these partsUMA is infamous around these partsUMA is infamous around these partsUMA is infamous around these partsUMA is infamous around these partsUMA is infamous around these partsUMA is infamous around these parts
Talking Re: how come construction sector is hiring??

Quote:
Originally Posted by Qn_of_sunshine
And if someone had to sell within two years of buying the place cos they lost their job , they won't even have to pay taxes on the capital gain. Its a win win situation for most ppl right now. I can't believe I'm gonna say this, but its thanks to Bush.
Two mistakes in one post. That makes you look stupid. Doesn't it? LOL

One, if you sell within two years, you pay capital gains tax. The case where you do not pay capital gains tax requires seller to live in the house for more than two years (not less than two years) in 5 years preceeding the date of sale. The limit of capital gains exemption is $250k ($500k, if married filing jointly).

Second, don't thank Bush for this. This IRS concession was signed by Clinton in his second term.
Reply With Quote
  #6  
Old May 7th, 2005, 06:42 AM
shahenshah shahenshah is offline
Senior eCharchan
 
Join Date: Jul 2001
Location: comp.unix.*
Posts: 1,082
shahenshah will become famous soon enough
Re: how come construction sector is hiring??

Quote:
Originally Posted by dhurandhar
I am puzzled by some contradiciting information here

On one hand, the economy is doing poorly...jobs are lost in manufacturing sector blah blah blah

On the other hand, construction related jobs are up everywhere...and this sector is hiring people
Great question, I would say.

According to trad classical economics (and the little I know of it), in times of a recession the govt. pumps money into the economy to jump-start the economy. Construction is one such area, tax-cuts another way to do so. I am not sure abt. Bush's contri to the govt. owned construction projects, but there were tax cuts (are record deficits too...).
Now, of course the govt. has never really ack'd that the US economy has officially been in recession but many signs have pointed to a slowdown/stagnation ...
The housing boom was fuellled by low interest rates I thought...also, a larger % of working families with both husband and wife with jobs...
__________________
Listen to some great World Music:

A World of Music

----------
Reply With Quote
  #7  
Old May 9th, 2005, 09:14 AM
Qn_of_sunshine Qn_of_sunshine is offline
Senior eCharchan
 
Join Date: Apr 2002
Location: VA, US
Posts: 687
Qn_of_sunshine is a glorious beacon of lightQn_of_sunshine is a glorious beacon of lightQn_of_sunshine is a glorious beacon of lightQn_of_sunshine is a glorious beacon of lightQn_of_sunshine is a glorious beacon of lightQn_of_sunshine is a glorious beacon of light
Re: how come construction sector is hiring??

Quote:
Originally Posted by UMA
Two mistakes in one post. That makes you look stupid. Doesn't it? LOL

One, if you sell within two years, you pay capital gains tax. The case where you do not pay capital gains tax requires seller to live in the house for more than two years (not less than two years) in 5 years preceeding the date of sale. The limit of capital gains exemption is $250k ($500k, if married filing jointly).

Second, don't thank Bush for this. This IRS concession was signed by Clinton in his second term.
HELLO MIZ UMA. Excellent use of confirmation bias there.
Reply With Quote
Reply

Bookmarks


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Genitals shrink at construction site echarcha Taaza Khabar - Current news 3 October 26th, 2010 11:07 PM
No unauthorised construction of places of worship jana05 Religion 6 October 1st, 2009 12:27 AM
Re-construction of Iraq Diplomat SoapBox 3 April 11th, 2003 08:02 AM
VHP gives deadline for temple construction echarcha Indian Politics 9 February 6th, 2002 10:34 PM
Israel Blocks Construction of Mosque in Nazareth aryaputra Taaza Khabar - Current news 3 January 21st, 2002 11:50 AM


All times are GMT -7. The time now is 08:02 AM.


Powered by vBulletin® Version 3.7.2
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
Site Copyright © eCharcha.Com 2000-2012.