Slowly but surely the American people are being strangled to death. Is it because there is no money out there? Not really but it's all being squirreled away by greedy companies who just want to keep making a high profit. The real reason why so many people are being let go is not that keeping them would drive the company under, but that they want to keep profits high in down times. The stupidity is that by letting people go they are only exacerbating the situation more and may be sealing their doom in the future.
On monday a record a record 75,000 job cuts were announced. How many of them were needed because there was no work for those people and how many were because those companies wanted to maximize profits in bad times.
Caterpillar who makes farm and construction equipment announced that 20,000 people would be laid off. If nobody is buying tractors then there is no sense in building them, but is 20,000 realistic or is that number unreasonably high in order to make a bigger profit in bad times?
Clear Channel an outfit that owns the most broadcast stations in America totaling over 1200 and a nationwide billboard business, let go 1,850 people. It is interesting that last year their revenues fell 9%, but they made a profit and that current number laid off is 9% of the company's total staffing. The question is are they afraid of going into the red or just wanting to keep profits the same as in better years?
We are living in times when people are expendable. In fact most companies look at the employee as a a liability where in the past they were an asset. Company loyalty to their staff is almost negligible and yet the company demands loyalty from them. It's a bad deal all around.
So what can the government do. First of all quit bailing out companies who will take the money and let people go. Earmark that money for job security and nothing else. But if its a chance to help a corporation or help the people, guess who's taking a walk? The only reason the government wants to get money in the hands of the people is so they will turn around and spend it on the corporation, not to put food in their mouth but when they do, they dole out the food in a manner that makes people grovel at the cost of their self esteem.
I wish I could come up with a rosy end to this blog, but there isn't one. Maybe it's just that capitalism is a miserable failure and nobody is ready to admit it.