Sunday, March 27, 2011

Wonder where the money went?

The rich lady's site, via Greenwald at Salon
Despite high unemployment and a largely languishing real estate market, U.S. businesses are more profitable than ever, according to federal figures released on Friday.

U.S. corporate profits hit an all-time high at the end of 2010, with financial firms showing some of the biggest gains, data from the federal Bureau of Economic Analysis show. Corporations reported an annualized $1.68 trillion in profit in the fourth quarter. The previous record, without being adjusted for inflation, was $1.65 trillion in the third quarter of 2006.

Many of the nation's preeminent companies have posted massive increases in profits this year. General Electric posted worldwide profits of $14.2 billion, while profits at JPMorgan Chase were up 47 percent to $4.8 billion.
.Remember when "company" was synonymous with "employer"? Where are the jobs?

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Anonymous Terry Parkhurst said...

Many jobs are gone, never to return. Some of it is certainly due to outsourcing.

It used to be that a collge grad who had taken the less than marketable course of studies known as "the liberal arts," could in a pinch, get work in call centers. Yours truly worked at the now defunct Eddie Bauer call center in Redmond, Washington in the winter and spring of 1988-'89.

Now, much of that work is done by people outside the United States. For example, if you have a technical problem with your Qwest Internet connection, you'll likely be talking to someone who will tell you his or her name is something such as "Ken" or "Carol." But the accent will alert you to the fact that the name is phoney and the person is somewhere in India. (This is based on personal experience. Said people are excruciating polite and sometimes helpful, sometimes not.)

Other sorts of jobs - think manufacturing here - have left the country, never to return either. The reason for the loss of manufacturing jobs could make a 2,500 word essay (at least). But we all know what happened to old line companies such as General Motors and Chrysler.

As for a company such as GE (General Electric), I can find the answer on the bottom of a GE W1200 digital camera a friend gave me for my birthday, last year; on the removable portion that secures the batteries and memory card, in small print (that the head honcos at GE hope you won't read) are the words: Made in China.

Hey, isn't the head of GE the president's new source on how to ensure that jobs aren't exported out of the country? That's a rhetorial question. He is indeed.

There's an irony there - a big one - since President Obama promised us hope and change. It seems that there's little hope and just more of the same old/same old.

Maybe if the president is re-elected he'll make Ted Nugent head of the Department of the Interior.

10:12 PM  

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