The New Orphan: The American worker

The official number of unemployed Americans for 2010 released by the Bureau of Labor Statistics is 9.6% and approximately 15 million people. In 2009, the unemployment rate was 9.3%. When the current recession was officially acknowledged in 2008, the unemployment rate was 5.8%. In both 2006 and 2007, the unemployment rate was 4.6% or 7 million people out of work. Since 2007, there are twice as many Americans out of work. The difference today in 2011 is that unlike the situation in 2008, when many major American corporations were losing Billions of dollars each year and facing bankruptcy or actually went bankrupt; corporations are making record profits. Apple computer had a net income of $14 Billion dollars for 2010 versus $4.8 Billion in 2008. Ford Motors made $6.5 Billion in 2010 versus a loss of $14.7 Billion in 2008. General Motors made $4.6 Billion in 2010 and had to receive a bailout from the federal government as it went into bankruptcy into 2008. The total profits of American corporations were over $4 Trillion dollars for 2010 and yet we ended the year with nearly 15 million people out of work. How can this be you ask? American corporations today are multi-national and as a result, they are increasing receiving both their sales and their profits from outside of the USA. For example, Coca Cola receives 75% of its sales and profits outside the USA. As a result, corporations have diversified and no longer rely on American workers and thus sales from Americans to generate profits. Henry Ford was considered an American genius and visionary when he mass produced the automobile for a fraction of the price of other car manufacturers. Originally the automobile was only a luxury item for the rich in 1910 sold for three to four thousand dollars. Ford designed and sold the model T for only $400. At the same time, he tripled the minimum wage for his employees. Other corporations were upset with Henry Ford and asked him why he would increase wages so high and he responded “Who will buy my cars?” Unfortunately, in 2011, American corporations have reduced wages, permanently eliminated jobs as they have transferred high paying engineering and manufacturing jobs to Asia. And now since American corporations can make record profits from overseas sales, they no longer have to higher American workers. The sad news is that American workers are the “new orphans.”

http://www.nytimes.com/2011/03/21/opinion/21klein.html?pagewanted=print

http://www.huffingtonpost.com/robert-kuttner/business-doesnt-need-amer_b_819337.html?view=screen

http://prospect.org/cs/articles?article=business_is_booming