The good news is that American companies are creating jobs. The bad news is the jobs are being created in Europe and Asia.
On Countdown with Keith Olbermann last night, guest host Sam Sedar explained just why the economy is not getting better, despite record profits for companies.
“1.4 million jobs have been created overseas in the past year compared to fewer than a million jobs domestically and, according to the Economic Policy Institute, if all those jobs had been added here, the unemployment rate would have dropped almost a full percentage point from 9.8% to 8.9%.”
To make his point, Sedar focused on the Apple iPhone, which sells for around $179 wholesale. Out of that $179, American workers only walk away with $11, while the other $168 goes to China, Japan, Germany and other countries.
Robert Reich, former Sectretary of labour under President Clinton, was on the show, and the way he put it, American companies aren’t creating jobs because people in America don’t have the money to spend, which of course they would have if the companies would hire them.
“I mean, supply-siders, people on the conservative right who say all we need is more tax cuts for the wealthy and for big corporations, are not taking account of the fact that big corporations have as much money as they need. There is nothing constraining them in terms of hiring people except for the fact they’re worried there’s not enough market. People don’t have enough money in their pockets here in the United States to buy the goods and services that would justify more hiring.”
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