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Saturday, June 23, 2012

So what is the alchemy that must take place for the "job creators" to actually create jobs?
Posted by Jill | 5:56 AM
I really wish that just one Republican who parrots the "job creators" meme would explain just what it's going to take for these "job creators" to actually "create jobs". Because companies are making record profits RIGHT NOW:
In case you needed more confirmation that the priorities of US companies and the US economy are screwed up (specifically, they're engineered to create a country of a few million overlords and 300+ million serfs), here are three charts for you: 1) Corporate profit margins just hit an all-time high. Companies are making more per dollar of sales than they ever have before. (And some people are still saying that companies are suffering from "too much regulation" and "too many taxes." Maybe little companies are, but big ones certainly aren't).

2) Fewer Americans are working than at any time in the past three decades. One reason corporations are so profitable is that they don't employ as many Americans as they used to.

3) Wages as a percent of the economy are at an all-time low. This is both cause and effect. One reason companies are so profitable is that they're paying employees less than they ever have as a share of GDP. And that, in turn, is one reason the economy is so weak: Those "wages" are other companies' revenue.

Charts that tell the whole sad story at a glance are here.

So, Mr. Rmoney....just WHAT is the "magic" that's going to make these record-high-profit businesses hire people here in the US? Oh, right. You would have no idea.

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Anonymous Anonymous said...
Even better questions:
1) - What are the corporations DOING with all that money? [Paying executive salaries? Building sweatshop factories in China?]
2) - Why is the stock market doing so badly? Didn't we learn in Econ-101 that people invest in profitable companies? If the companies are so profitable why are they not better investments -- and thus why is their stock price not higher?

I really don't have answers!

Anonymous e.a.f. said...
companies maybe profitable for any number of reasons. A country only grows when it produces something of value which others want. The U.S.A. doesn't produce much, with all the factories, which produced goods people wanted, moved over seas. Then with any number of countries, signing free trade agreements with countries which have lower salaries & standards, we get the picture.

Canada & the U.S.A. had a large middle class which was essentially the working class. One of the reasons the working class did so well was large unions which represented workers. Even those who were not represented, benefited. In the U.S.A. Unions have been decimated & in Canada the current government is having a good run at it. Countries with free & functional unions have better standards of living & better social benefits. If you want a poor country, look at one which banns unions or oppresses them.

The argument that high wages drove companies over seas doesn't really wash. North American salaries have not actually risen in 30 yrs & not kept up with inflation, etc. Have the companies come back, not so much.

Companies not only left for easier workers conditions--none, they left because North America was beginning to implement enviornmental standards for industry. They were the major cost factor facing businesses. By moving off shore they avoided that.

If no worker rights & no government inteferance worked so well then why isn't Hondorous doing better or Mexico?

It is only when a country has a strong social system with good education & health programs does it more forward.