Wednesday, October 06, 2010

Why so many U.S. jobless and underemployed?

Why are so many jobless and underemployed in America? One clue is that US corporations are now hoarding all their cash instead of investing it. How much cash? More than $1.6 trillion. Read more

And US companies continue to move manufacturing operations to a low-wage country, manufacture the product there using ultra cheap labor, with no regulations or environmental concerns, and then ship the product to the US for consumption, paying no tariff or tax on that shipment into our country. Up to 60% of our imports come from this kind of operation. This is what has cost our country so many jobs.

And from a purely business and profits point of view, why on earth would America's biggest banks and corporations make any of their money available for loans to new and small businesses in the USA when they can "earn' so much more with that money by either building new factories in China, or using it to gamble on derivatives and stocks in the great Wall Street casino? 

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