bureaucracybusters

A SIGN OF UNEMPLOYMENT: PART TWO (OF SIX)

In Business, Law, Politics, Social commentary on March 15, 2013 at 12:00 am

In its June 8, 2011 cover-story on “What U.S. Economic Recovery?  Five Destructive Myths,” Time magazine warned that profit-seeking corporations can’t be relied on to ”make it all better.”

Click here: What U.S. Economic Recovery? Five Destructive Myths – TIME

Wrote Rana Foroohar, Time‘s assistant managing editor in charge of economics and business:

“There is a fundamental disconnect between the fortunes of American companies, which are doing quite well, and American workers, most of whom are earning a lower hourly wage now than they did during the recession.

“The thing is, companies make plenty of money; they just don’t spend it on workers here.

“There may be $2 trillion sitting on the balance sheets of American corporations globally, but firms show no signs of wanting to spend it in order to hire workers at home.”

In short:  Giving even greater tax breaks to mega-corporations–the standard Republican mantra–has not persuaded them to stop “outsourcing” jobs. Nor has it convinced them to start hiring Americans.

While embarrassingly overpaid CEOs squander corporate wealth on themselves, millions of Americans can’t afford medical care or must depend on charity to feed their families.

Yet there is also a disconnect between the truth of this situation and the willingness of Americans to face up to that truth.

The reason:

“The Republicans have pulled off a major (some would say cynical) miracle,” writes Foroohar.

They have convinced “the majority of Americans that the way to jump-start the economy is to slash taxes on the wealthy and on cash-hoarding corporations while cutting benefits for millions of Americans.

“It’s fun-house math that can’t work.  We’ll need both tax increases and sensible entitlement cuts to get back on track.”

Now, fast-forward one year later–to a June 11, 2012 CNNMoney investigation, which raised the question: “Why is the jobs recovery still so sluggish?”

And the answer?  “These 8 companies recently announced layoffs in the thousands.”

8 job killing companies – Hewlett-Packard slashes 27,000 jobs (1) – CNNMoney

The companies:

  • Hewlett-Packard – cutting 27,000 jobs.
  • American Airlines – slashing 13,000 jobs–with most of the cuts affecting maintenance and ground workers.  That’s something to think about the next time you’re thinking of flying American.
  • Sony – eliminating 10,000 jobs.
  • Proctor & Gamble – axing 5,700 jobs.
  • PepsiCo – slashing 8,700 jobs.
  • Yahoo – wiping out 2,000 jobs.
  • First Solar – cutting 2,000 jobs.
  • Kraft Foods – slashing 1,600 workers.

Of course, some companies have legitimate reasons for cutting back on employees:

  • Sony has failed to revive its losing television business, which hasn’t turned a profit in eight years.
  • And PepsiCo has suffered a fall-off in customers as Americans switch from soda to healthier drinks.

But there are also sinister reasons why millions of willing-to-work Americans remain unemployed.  Or remain trapped in part-time, no-benefits jobs far below their levels of education and experience.

Chief among these is the refusal of Congressional Republicans to create job opportunities for their fellow Americans.

U.S. Senator Bernie Sanders (I, Vermont) made just that argument to guest host Ezra Klein on the June 12 edition of “The Rachel Maddow Show.”

U.S. Senator Bernie Sanders

SANDERS: Everybody knows you have to invest in infrastructure. We can create millions of decent paying jobs in the long term and I speak as a former mayor, you obviously save money because you don’t have to do constant repairs as we’ve just seen.

The simple reason is I’m afraid that you have a Republican mindset that says, “Hmm, let`s see, we can repair the infrastructure, save money long time, create millions of jobs, bad idea. Barack Obama will look good.  And we’ve got to do everything that we can to make Barack Obama look bad.”

So, despite the fact that we had a modest bipartisan transportation bill, roads, bridges, public transit pass the Senate with over 70 votes, Inhofe, the most conservative guy in the Senate, working with Barbara Boxer, one of the most progressives, we can’t get that bill moving in the House of Representatives.

So if you’re asking me why, I would say 100 percent political. If it’s good for America, if it creates jobs, if it’s good for Barack Obama, we can’t do it.

Here’s another reason for America’s unemployment miseries:

More than 12 million Americans are now unemployed because many employers have designed “hiring” systems that simply don’t work.

So says Peter Cappelli, the George W. Taylor professor of management at the Wharton School at the University of Pennsylvania.  He is also the author of  Why Good People Can’t Get Jobs: The Skills Gap and What Companies Can Do About It.

Amazon.com: Why Good People Can’t Get Jobs: The Skills Gap and What Companies Can Do About It

Why Good People Can't Get Jobs: The Skills Gap and What Companies Can Do About It

Employers often whine that they can’t find the talent they need.  Today’s applicants, they claim, lack skills, education and even a willingness to work.

The truth is altogether different.

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