Submission + - The Great Decoupling of Corporate Profit from Jobs 1
theodp writes: Corporate profits are way up, reports ex-Secretary of Labor Robert Reich. And big American companies are sitting on a gigantic pile of money. Which can only mean more jobs are on the way for American workers, right? Wrong. U.S. companies — including 60% taxpayer-owned GM — won't hire American workers are instead investing and expanding production overseas. Why? Taking their cue from Willie Sutton, that's where the big money is. Further exacerbating matters, says Reich, is that Wall Street is advising investors to sell the stocks of companies that talk openly of hiring. Finally, corporations are putting their cash to work by paying dividends to shareholders and buying back their own stock to push up share prices. 'Higher corporate profits no longer lead to higher employment,' concludes Reich. 'We're witnessing a great decoupling of company profits from jobs.'
