Wednesday 28 July 2010
Bottom line: Higher corporate profits no longer lead to higher employment. We’re witnessing a great decoupling of company profits from jobs. The next supply-side economist who tells you companies need more incentive (i.e. lower taxes) before they’ll hire is living on another planet. The reality is this: Big American companies may never rehire large numbers of workers. And they won’t even begin to think about hiring until they know American consumers will buy their products. The problem is, American consumers won’t start buying against until they know they have reliable paychecks. Robert Reich ☀
