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
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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A SIGN OF UNEMPLOYMENT: PART THREE (OF SIX)
In Business, Law, Politics, Social commentary on March 18, 2013 at 12:02 amEmployers often claim 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.
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
According to Cappelli, when companies whine they can’t find talented employees, the fault usually lies with employers, not job-seekers:
According to Cappelli, the hiring system desperately needs serious reform:
A 1996 cartoon by Ted Rall, the no-holds-barred cartoonist–entitled “Something for Nothing”–brilliantly sums up how most corporate “job creators” actually regard and treat their employees and applicants:
Cappelli worries that the complaints about a labor shortage caused by an unwilling, unskilled workforce will be repeated enough that they will be accepted as truth:
“It’s a loud story … that could become pernicious if it persists. It does have a blame-the-victim feeling to it. It makes people feel better. You don’t have to feel so bad about people suffering if you think they are choosing it somehow.”
And where there are victims, there are always people ready to profit from their desperation.
Consider the following email recently sent out by Steve Poizner, former Republican State Insurance Commissioner of California (2007-2011).
A successful Silicon Valley high tech entrepreneur, Poizner founded SnapTrack, Inc. and Strategic Mapping, Inc. In June, 2011, he co-founded the Encore Career Institute with the Sherry Lansing Foundation and Creative Artists Agency.
Thus, the email sent out on July 2, 2012:
Dear friends,
I wanted to share with you some news before my new venture – Empowered Careers – launches around the country….I’ve started this company to help address one of the key issues we face today — jobs.
Our venture aims to close the skills gap through an innovative career development program — all delivered via the iPad.
The program is called “Empowered UCLA Extension” and it combines personalized career counseling with a UCLA Extension professional education from a live instructor who is an expert in his or her field.
It’s all designed specifically for baby boomers seeking to make a career change, get ahead professionally, or get back into the workforce.
* * * * *
Note the line: “Our venture aims to close the skills gap,” which it assumes to be a reality. And the ad says nothing about the ”greed gap” which exists between what employers demand from workers–and what they are willing to pay in return.
The Encore Careers Institute will offer online non-degree certificates for out of work adults and baby boomers looking to switch careers.
When did a non-degree certificate ever convince an employer to hire? Even a hiring-inclined employer?
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