Corporate profits not translating into jobs

[The Backlash Cometh]

OrlandoSentinel.com
Corporate profits don't translate into local jobs



It seems like just the thing Florida's coughing, wheezing job market needs: With corporate profits rebounding nicely in the past year, the nation's biggest companies are sitting on almost $1.7 trillion in earnings.

Flush with cash, those businesses must be ready to hire, right? Their strong financial position must mean that stubbornly high jobless rates — 12 percent statewide, 11.9 percent in Central Florida — will soon march downward?

Not necessarily.

The usual relationship between profits and employment has been wrenched out of shape by the worst economic downturn since the Great Depression. In part, that's because the jump in earnings is a function of lower operating costs and stronger overseas results — not surging domestic demand.



http://www.orlandosentinel.com/business/os-jobs-hiring-20101225,0,3622758.story

[FreakinDJ]

1. Corporate Tax Loop Hole that Outsources Jobs

The Bill to close that loop hole was some how lost in committee

I don't Blame Obama - he fought for it back in June

I blame the Stagnant Greedy Cork Soakers in the House and Senate

[OHdem10]

2. Much of Corporate Profits are coming from Businesses overseas.

Good for Companies and Wall Street--not so good
for Main Street.

Poorly managed Globalization and especially Trade Policy.

[maryf]

3. K&R nt.

[valerief]

4. "The economy" is the state of rich people getting richer or poorer, so when an economy is failing,

rich people get poorer. But when an economy is improving, rich people are getting richer.

Non-rich people don't factor into an economy except as a disposable resource.