The DJIA crept above 8000, there were slight up-ticks in consumer spending and housing sales reported, and suddenly we're supposed to believe the economy has bottomed out? The people I talk to are still feeling mighty insecure about their jobs, because losing your job threatens your health care and your retirement savings at a time when we know the job market is still very, very tight.
While the President is right to focus on the engines that create jobs in the U.S., such as small businesses and the schools that prepare us for those jobs, IBM has recently announced layoffs in the U.S. as they continue moving even more jobs out of the country. At IBM, business success is all about their bottom line - they're moving jobs to countries where workers earn less and have fewer benefits. Not quite what the President is working for, and certainly not what the U.S. workforce deserves.
Ms. Dawn Teo has written an OpEd at Huffington Post, "New Economic Reports Suggest Middle Class May Have To Wait For Economic Recovery" loaded with facts and figures, and I respect Dawn for her tenacious research. It's a dose of cold reality amid the sudden clamor of voices saying confidently, "it's getting better!" Did they see those unemployment numbers? Did they forget already that productivity declined in the non-farm business and manufacturing sectors in fourth-quarter 2008?
The impact of the financial deregulation orgy is not behind us yet. So trying to goad us into optimism based on a few isolated numbers, cherry-picked for their "improvement," isn't a story I'm ready to buy just yet. Not while mega corporations like IBM can still scoff and do layoffs with impunity.
Despite the setback at the end of 2008, productivity has roughly doubled in the U.S. in the last several decades, yet the benefits have flowed to the super rich, while their companies and strategies and "financial products" have abused those of us who dared to believe in terms like "privatized retirement accounts." Returning to preeminence in manufacturing and agriculture isn't simply about recapturing the American Dream, it's essential to our economy and security. The big business leaders that have touted the virtues of capitalism during those decades will be proven wrong if they fail to recognize that their profit - their success - is a direct result of the creativity and productive labor of the middle class.
When IBM can be as proud of how they treat their workers every day as General Motors was during its glory years,when I see people going back to work at jobs with good salaries and benefits, then I'll be ready to believe the U.S. economy is back on its feet. We've got a lot of work to do.
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