Healthy profits, few jobs -The Economist

[Tierra_y_Libertad]

Bailing out the corporations worked! For the corporations.

http://www.economist.com/node/16767222



THE quarterly results season that is drawing to a close has revealed that corporate profits are back within a whisker of the all-time highs achieved before the downturn in late 2008. American profits are already back to 11% of GDP. Corporate America is reaping the rewards from cutting costs, especially in capital investment and labour, through an unpleasant mix of redundancies, reduced hours and lower pay. The great squeeze cannot go on forever, of course, but it shows no sign of slackening. Figures released on Friday August 6th show the unemployment rate remained steady at 9.5% in July, but non-farm payroll employment fell by 131,000, some 65,000 more than expected. The great decoupling of profits from jobs could last for a long time.

[Poboy]

1. Obama is confident we aren't going to double dip though, so its cool.

The oil has dissappeared too.

[dkf]

3. Yeah I sense your great faith in the man.

[dkf]

2. As we gain efficiency through technology big business needs less workers.

Who needs a typist anymore? The engine of growth is small business and it has been for quite some time. Even big business uses small businesses as outsourcing to contrators becomes more the norm.

[unpossibles]

4. true although some of that efficiency is cause by the high unemployment rate itself

companies are pushing their employees to do more and more for less and less (I know because my project load has more than doubled the past year, and the same the year before, but without much of any sort of extra compensation for it). The lever that companies use to get their employees to work more and more is that they are lucky to have a job.

[dkf]

7. Tell me about it.

I've taken on the duties of 5 other people who have left.

[Tierra_y_Libertad]

11. It's "leveling the playing field". Guess whose legs are being get cut off to make it level.

It ain't the owners and CEOs.

[kelly1mm]

10. This is very true. I have a small law practice and used to have two

employees. Now I have no employees. What happened was first one, then the other, left in the course of 2 years (2007 and 2008), to have children. When the first one left (paralegal) I got some new technology tools to help with that. Then the receptionist left and I got more tools to help with that. At the same time I downsized the practice to pursue other interests. However, the net earnings to me have actually increased slightly. Technology is making many jobs obsolete.

[blindpig]

5. An ideal situation if ya own the means of production....

So the useless bastards can't afford your product? No prob, there's a rising class of capitalist's enablers across the water and ya won't even have to put yer shit in a boat!

It can't go on forever but if it works 'til next quarter it's all good.

Kill Capitalism

[high density]

13. You got that right

Companies can't see more than a quarter ahead. They expect people to spend lots of money but they don't want to pay them much money... It's one broken system for sure.

[laughingliberal]

6. Mission Accomplished!!! nt

[amborin]

8. knr

[Starry Messenger]

9. How many yachts can they need?

They are making war on us just as sure as if they had us under siege.

[Poboy]

12. up

[leftstreet]

14. K&R

[ThomWV]

15. This needs to be kicked back up where a lot more people can see it.