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For corporate America the great recession is over, for American workers its not..why?

"For corporate America, the Great Recession is over. For the American work force, it's not."

That's how David Leonhardt of the New York Times puts it, as he grapples with a quandary that we've raised several times lately: The economy is growing again, and corporate profits are off the charts. So why is job growth still so slow? And how have other countries managed to keep unemployment lower than ours, even with slower economic growth?

Some observers lately have blamed the problem on structural factors -- there's a mismatch, they say, between the types of jobs available in a given location, and the types of skills that workers have. That's a problem that only long-term retraining efforts can likely fix.

But Leonhardt, a respected economics columnist for the Times, appears to disagree. One "obvious" explanation for slow job growth, he argues, is a shift in power away from workers and toward management. Leonhardt writes:

Answer Question

Asked by sweet-a-kins at 3:47 PM on Jan. 19, 2011 in Politics & Current Events

Level 34 (67,502 Credits)
Answers (17)
  • sweet-a-kins

    Comment by sweet-a-kins (original poster) at 3:47 PM on Jan. 19, 2011

  • Because the corporations are taking their workforce overseas where employees work for pennies a day without benefits.

    Answer by tyfry7496 at 3:56 PM on Jan. 19, 2011

  • From everything I've read and seen the problem is this: while companies are doing much better, they are hesitant to hire because they are fearful of a double-dip recession and also the less payroll they have to provide and health insurance, other benefits too then that's more money in their pocket. It basically all boils down to what got the economy in a slump to start with-GREED

    Answer by SweetLoveofMine at 3:57 PM on Jan. 19, 2011

  • That's hysterical.
    1) "The economy is growing again". Says who? Stock market numbers are rising, but look at the values in GOLD, and you discover that stock prices have fallen steadily for 10 years. Stocks are not worth MORE ... they're just worth more DOLLARS. That's not recovery. That's inflation.
    2) "Corporate profits off the charts": drill into that one. "Up 28% from a year ago" Does the author have amnesia about financial reality a year ago? 28% better than disastrous is hardly astronomical ! And the author actually expects managers to hire more employees - irresponsibly ignoring the gov't's egregious new taxes, medical costs and regulations aimed at bleeding business dry.
    3) "a shift in power away from workers". The proposed answer is more unions. Unions have ENORMOUS power already. And they are working relentlessly to achieve unchecked power by getting the "Card-check" bill passed.
    Unions are (cont'd)

    Answer by waldorfmom at 4:01 PM on Jan. 19, 2011

  • Because American Corps have found the only way to compete with their foreign/global counterparts is to reduce labor costs- This is the new reality for America workers. My husband, who is Corporate, says they will not be hiring more anytime soon. They have found to shift responsibilities and cover more with less. My employer, same thing. Increased pt to nurse ratios- Most of the nurses in my unit are laid off 1/6 th of their scheduled time. Do we have open Nursing positions? Yes. Are we hiring? Nope. Holding on to liquid assets, meeting the needs/expectations of the share holders, yes. The American worker is far removed from the radar screen.


    Answer by Sisteract at 4:18 PM on Jan. 19, 2011

  • Unions are why GM got the gov't bail-out, using taxpayer debt - union campaigning was getting paid back. If GM had gone bankrupt, then the unions would have had to re-negotiate contracts with a judge. Their workers would NOT have lost all their jobs, GM would NOT have closed.

    Public employee unions (along with $26 billion in costs for illegal immigrants) have driven California into bankruptcy.

    From the article: "... Many companies can now come much closer to setting the terms of their relationship with employees, letting them go when they become a drag on profits and relying on remaining workers or temporary ones when business picks up. ..."

    ExCUSE me?! Since when does a business exist for the purpose of employing people ?! If it's not making a profit, then why on earth would the owners devote their sweat and money to it? That profit is THEIR wages !
    Of COURSE they must drop employees if the profits drop ! Duh


    Answer by waldorfmom at 4:18 PM on Jan. 19, 2011

  • "... And how have other countries managed to keep unemployment lower than ours, even with slower economic growth? ..."

    They HAVE? He fails to cite any such countries. Last I checked, the non-sweatshop countries were having riots in the streets by workers angry that their cushy pensions were under review.

    One device used in Europe was to shorten the work-week, in order to share among more workers the limited amount of work available under their socialist systems. Fewer hours per person, longer holidays, and thus the unemployment numbers LOOK better.

    But although more people are "employed", no more work is getting done. Although employment numbers rose, productivity did not, and thus the country's economy was NOT improved.

    The author blames the out-sourcing of jobs on his idea that workers now have less power.
    ... !!!
    Yeah, right. It couldn't POSSIBLY have anything to do with gov't regulation and taxation.

    Answer by waldorfmom at 4:31 PM on Jan. 19, 2011

  • I'm with waldorfmom when it come to unions. Also, I know with my DH's previous company, they used the resession as an EXCUSE to fire people! He worked for UPS for 14 years. The company went public, and the values got slashed. Ever since then, it's been all about the bottom line. And whatever, that's business. But when the resession hit, corporate used it as a way to 'trim the fat' so to speak. They brought in the folks who'd worked their lives away at UPS, and who were close to receiving their retirement/pensions, and offered them a severance package to leave, or threatened to transfer them to a galaxy far far away. They eliminated raises and stopped hiring/promoting. Meanwhile, FedEx was downsizing, DHL was pulling out of the country, and UPS took over those parts of the market. The big Whigs gave themselves million dollar bonuses for a job well-done. Thank goodness DH was fortunate enough to get out!

    Answer by kenzie07 at 4:33 PM on Jan. 19, 2011

  • Profits are off the charts- They aren't just up from last year. The third quarter in 2010 had the largest profit ever recorded in American history. Corporate America is prospering, while most people are still struggling. The reason why, is simple because they can. They are profiting from not hiring American workers, they are profiting by making the people they do have do the work of two people, they are profiting with all the tax breaks they get when they ship their jobs overseas. They are getting away with murder and we are letting them. They aren't paying their fair share of taxes, there are so many loop holes set up for them. They will continue to do this as long as we allow this, and the people stay brainwashed and think they aren't hiring because of uncertainty. That is an excuse, you are buying  it hook line and sinker, while they laugh at you all the way to the bank.


    Answer by mommom2000 at 4:38 PM on Jan. 19, 2011

  • That profit is THEIR wages !
    Of COURSE they must drop employees if the profits drop ! Duh

    Their profits aren't dropping Duh!!  


    Answer by mommom2000 at 4:40 PM on Jan. 19, 2011

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