|Sustaining the economy|
By Robert Reich
ON MAY 1, the Dow Jones Industrial Average hit its highest peak since December 2007. But April’s jobs report was a disappointment — only 115,000 new jobs were created. At least 125,000 are required each month just to keep up with the growth of our working-age population.
What’s going on?
Shares are up because corporate profits are up, and profits are up largely because companies have figured out how to do more with less.
One of the most striking legacies of the Great Recession has been the decline of full-time employment — as companies have substituted software or outsourced jobs abroad (courtesy of the Internet, making outsourcing more efficient than ever), or shifted them to contract workers also linked via Internet and software.
|Tuesday, May 15, 2012 2:56 PM|