Companies Invest More In Machines Than In People—We’ve Got To Fight For Ourselves As Working People
The New York Times reports that companies are spending more on new computers and other machines than they are spending on hiring new people.
“…Workers are getting more expensive while equipment is getting cheaper, and the combination is encouraging companies to spend on machines rather than people. “I want to have as few people touching our products as possible,” said Dan Mishek, managing director of Vista Technologies in Vadnais Heights, Minn. “Everything should be as automated as it can be. We just can’t afford to compete with countries like China on labor costs, especially when workers are getting even more expensive.” Vista, which makes plastic products for equipment manufacturers, spent $450,000 on new technology last year. During the same period, it hired just two new workers, whose combined annual salary and benefits are $160,000.”….with the rising costs of hiring, companies like Vista are finding ways to use capital to replace workers whose jobs are relatively routine. “If you’re doing something that can be written down in a programmatic, algorithmic manner, you’re going to be substituted for quickly,” said Claudia Goldin, an economist at Harvard. To add insult to injury, much of the equipment used to replace American workers is made by workers abroad, meaning that capital spending is going overseas. Of the four pieces of equipment Vista bought last year, one was made domestically…”
Could somebody please tell me where people are going to work and how they are going to get by as we move forward in this country?
Here is where we seem to be in our nation today—
* We’re cutting spending on education that would prepare young people for the job market.
* We won’t ask the most wealthy to pay more taxes.
* Employers won’t hire even at a time of record profits.
* Government is laying off thousands of workers.
* Many people who are working are unable to get a steady 40 hours a week.
* There is vehement opposition from the right to the extension of health insurance to all Americans.
* Unions are under assault.
* Pensions are a thing of the past and people’s retirement—if they even have a 401K—is at the whims of the stock market.
* Social Security and Medicare are under constant attack.
* Poverty is rarely mentioned by leaders of either major political party.
* The unemployed don’t seem to be on the agenda at all as states cut back on unemployment benefits and the talk in Washington is about debt reduction.
It seems that the average person is being abandoned in America.
Given the direction we are headed, how are even the most hard-working people going to find steady work and good benefits?
The good news is that average people have the ability to fight back and to demand a fair return for the work they are willing to do. People are not helpless.
The work of a better and more fair nation and society is up to each of us. Every individual has the ability to attend a public meeting, attend or organize a protest, write or call an elected official, talk to friends and family, start a blog, donate money, write a letter to the editor, volunteer for candidates and causes, and even run for public office.
If you don’t take control of your future, somebody else will.
American Companies Report Record Profits—I Guess That Means More Layoffs
American companies have reported record profits for the third quarter of 2010.
“The nation’s workers may be struggling, but American companies just had their best quarter ever. American businesses brought in $1.66 trillion at an annual rate in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or non-inflation-adjusted terms. Corporate profits have been going gangbusters for a while. Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history. This breakneck pace can be partly attributed to strong productivity growth — which means companies have been able to make more with less — as well as the fact that some of the profits of American companies come from abroad.”
What do you think these profits mean for working people?
Layoffs?
Wage cuts?
Benefit cuts?
More temporary workers instead of full-time positions?
Who should we blame for the hard times facing the American worker?
Obama?
Immigrants?
What a country this is right now.
And when things are seen as in batter shape by American companies, will they hire at decent wages or will they keep folks unemployed and underemployed with temporary workers and two-tiered wage scales?
Two Weeks After Election, Republican Focus Remains On Everything But Jobs & Economy
It has been two weeks since Republicans made significant gains across the country on Election Day.
The focus of the election was jobs and the economy. 56% of folks in a recent CBS News poll say the most important issue for the new Congress is jobs and the economy.
Yet as millions of Americans still deal with unemployment and underemployment, the Republican focus is on everything but jobs and the economy. Where incoming Republican governors have addressed jobs, it is to kill jobs by refusing already approved federal dollars for high-speed rail infrastructure projects.
Examples—
* Republicans in control of the House of Representatives are planning nearly 300 investigations of President Obama. The last time a Republican House went after a Democratic President, it led to a destructive impeachment process. What excesses will we see this time?
* Newly-elected Republican Governors are killing high-speed rail projects that will create jobs. In Wisconsin, soon-to-be Governor Scott Walker received large amounts of campaign cash from road builders who have a direct interest in stopping rail projects. Wisconsin had an unemployment rate of 7.8% in September.
* The Republican President of the Kentucky State Senate, David Williams, declared his allegiance to the Tea party and said he supported repeal of the 17th Amendment to the Constitution. This amendment allows for the direct election of U.S. Senators. Mr. Williams believes that returning election of Senators back to state legislatures would move our nation back to the limited measure of popular sovereignty first written into the constitution. Many Tea Party supporters back this position.
Do you want to give your vote for United States Senator away? This is Tea party extremism in action. In September of 2010, Kentucky had an unemployment rate of 10. 1%. Yet what the Republican President of the State Senate is discussing is no longer allowing the public to vote for U.S. Senate.
* In Texas, Governor Rick Perry and Republicans in the state legislature are considering pulling out of Medicaid and out of the Children’s Health Insurance Program. This is being considered even though 3.6 million Texans use these programs. You can be certain that many in Republican rural Texas use these programs. Is this what these folks were voting for earlier this month? We’ll see about that when people find out that benefits are being cut.
What about all the people in Texas who work in jobs connected to health care? With such drastic cuts in funding, where will these people find work? Isn’t it good and honest work to be employed in health care so people can get better and go on with life? Where will we have any jobs in this society if we go after everything?
* The leader of the U.S. House Tea Party Caucus, Rep. Michele Bachmann, spent her time spreading a lie that President Obama’s trip to India was costing 200 million dollars a day. This assertion was simply not true.
What exactly is the point of undermining the President of the United States as he goes to visit a globally important nation like India?
For Republicans in Washington and in states across the nation, this election was not about jobs and the economy. Instead, the election was about extreme ideology that puts the jobs and the health of the American people at risk.
Anger at Washington is not going to get you a job. It is not going to pay the bills if you get sick. The Republican bait-and-switch is in already in evidence. These folks have no constructive thoughts. It is the same anger-driven politics that led to President Clinton’s impeachment and to the placement of Sarah Palin on the national ticket two years ago.
It’s up to all of us to be aware of what is taking place, and to make sure that Congress is focused on jobs and the economy and not on sideshow hearings and ideological tangents.
Finding Work When Over 50 In A Changing Economy—Ice Delivery Did Not Last Forever
Bud Korbee died recently in the Cincinnati area.
Mr. Korbee was one of the last people in Cincinnati employed in the job of delivering ice to people’s homes.
Above you see a picture of Mr. Korbee.
Here is a portion of Mr. Korbee’s obituary from the Cincinnati Enquirer—
“Bud Korbee, who was born to a butcher shop owner and homemaker in Norwood, joined his uncle’s ice delivery business while still in high school. His uncle died during Bud Korbee’s senior year, and the young man decided to keep the family business going instead of going to college. “It looked like a good business, like it would last forever,” said Harold G. “Hal” Korbee, his oldest son, a lawyer in Cincinnati for 45 years. In its best times, the little ice company employed seven workers, including family members like Hal Korbee, driving three ice trucks. They would stop, put a burlap sack on their shoulder and, using large tongs, pull off a 25- pound, 50-pound or 100-pound block of ice, which they’d carry to houses, businesses and apartments, sometimes up four or five stories.”
Mr. Korbee thought that maybe the ice delivery business “would last forever.” Imagine that.
You don’t have to be an advocate of ruthless competition and tearing the social safety net to shreds to realize that you have to be ready for what may come next in life.
The good news in this case is that Mr. Korbee did have another skill. And, in addition to this other skill, he was able to find an employer who would hire him.
From the obit—
“One of Bud Korbee’s hobbies became his next career as his ice business was dying. Bud Korbee loved gardening and kept a rose garden at home. He became a residential and commercial landscaper for Bud Jones & Sons Inc. from 1957 until he retired in 1980.”
I’m glad it worked out for Mr. Korbee.
The thing I wonder about today is will those who have lost jobs in the recession be able to find a decent job again?
While the obit does not give a birth date, based on his age Mr. Korbee must have been born in 1905 or 1906. He took the job with the gardening firm in 1957 just as he was turning 50.
From this story—
“… older workers suspect their résumés often get shoved aside in favor of those from younger workers. Others discover that their job-seeking skills — as well as some technical skills sought by employers — are rusty after years of working for the same company. Many had in fact anticipated working past conventional retirement ages to gird themselves financially for longer life spans, expensive health care and reduced pension guarantees. The most recent recession has increased the need to extend working life. Home values, often a family’s most important asset, have been battered. Stock portfolios are only now starting to recover. According to a Gallup poll in April, more than a third of people not yet retired plan to work beyond age 65, compared with just 12 percent in 1995…. in the greater Seattle area, a fifth of those claiming extended unemployment benefits are 55 and older.
If average people think they won’t need help from government in the economy of the future, they are in for a rough surprise. You can talk about small government all you want, but people are going to need help.
One way people are being helped is with Health Care Reform. HCR reform means you can’t be kicked off a policy for getting sick and it eliminates lifetime limits on polices. Already, and in the years, to come it will expand access to health insurance for millions of hard working Americans. Click here to read about how HCR will benefit working Americans.
Technology has been changing how people work for a long time. Mr. Korbee lost his job in ice delivery in the 1950’s because in-home refrigeration became accessible to almost all people.
I wonder how Mr. Korbee would have done if he lost a job today due to new technologies. It seems that he might have had a tougher time than he did in 1957.
I know this—Reflexive bashing of government is not going help anybody get a job or get through hard times.
We Can Live Like Decent People In A Society Or We Can Live Like Wild Beasts In The Tea Party Republican Jungle
When the economy improves, it is still going to be difficult for many to get a good job.
But once employers do step up hiring, some economists expect job openings to fall mainly into two categories of roughly equal numbers:
• Professional fields with higher pay. Think lawyers, research scientists and software engineers.
• Lower-skill and lower-paying jobs, like home health care aides and store clerks.
And those in between? Their outlook is bleaker. Economists foresee fewer moderately paid factory supervisors, postal workers and office administrators.
That’s the sobering message American workers face as they celebrate Labor Day at a time of high unemployment, scant hiring and a widespread loss of job security. Not until 2014 or later is the nation expected to have regained all, or nearly all, the 8.4 million jobs lost to the recession. Millions of lost jobs in real estate, for example, aren’t likely to be restored this decade, if ever.
These are the structural facts of our economic future.
Our choices are that can work hard as honest people do while looking to government that helps with a safety net that includes expanded access to health insurance and unemployment benefits for people looking to get back to work.
Or, we can take the Tea Party Republican course and starve government as the private sector goes on cutting jobs, cuttings wages, and cutting benefits.
We can live like people in a decent society who understand that folks need help sometimes and that our economy is changing.
Or, we can live like beasts in a jungle fighting each other for evermore scare resources.
I’m going to live like a decent person who works for a living, has no problem asking for help if required, and who is willing to pay taxes so all of us can live in civilization instead like wild beasts in a jungle.
You are out of your mind if you think the average person in this society is not going to need help from the government to maintain access to health care and to help live in retirement.
Read here about health care reform. It is going to help a lot of hard working people in our great nation. The fact that it is going to work is what upsets the Republicans so much.
(Below–The Republican Tea Party view of life and society. Right makes right and survival of the fittest. A pair of bear-dogs, Hemicyon sansansiensis, prepare to feast on a slain paleomerycid ungulate, in Miocene, France as drawn by Stanton Fink. )
w—Tea Party Republican view of existence. http://upload.wikimedia.org/wikipedia/commons/2/2b/Hemicyon_sansaniensis.JPG
John Maynard Keynes & Deadheads
Here is what the great economist John Maynard Keynes (above) said in favor of government intervention in the economy—
“….There was no expenditure…it was thought proper for the State to incur except for war. In the past, therefore, we have not infrequently had to wait for a war to terminate a major depression. I hope that in the future we will not adhere to this purist financial attitude, and that we shall be ready to spend on the enterprises of peace what the financial maxims of the past would only allow us to spend on the devastation of war.. At any rate, I predict with an assured confidence that the only way is for us to discover some object which is admitted even by the deadheads to be a legitimate excuse for largely increasing the expenditure of someone on something.”
I like this for two reasons. One is that it allows me to help make the case for government involvement in our economy. It is good that we live in a time when government is taking an active role in our economy, and is seeking to regulate and guide the economy rather than just letting this current deep recession take its course on people’s prospects in life.
If we’re all just left the private sector, we will not have the opportunities in life that collectivist initiatives can offer the struggling but hardworking person.
Here is a profile of Keynes from the Time magazine list of the 100 most influential people of the 20th century. Read about him and see what you think. Keynes lived from 1883 until 1946.
The excerpt above comes from the book Global Capitalism–Its Fall and Rise in the Twentieth Century by Jeffry Frieden. This is a solid book that fills you in on capitalism as practiced—for both good and ill—in all parts of the world for a span of more than 100 years.
The other reason I like what Keynes said is that it allows me to run a picture of some deadheads from a Grateful Dead concert. Below you see a picture of many deadheads at a Grateful Dead show.
I once went to a Grateful Dead concert. I was curious to see what it was like. I went at some point in the early 90’s. The show was just outside Columbus, Ohio and I think the temperature was about 102. The opening act was Bruce Hornsby and the Range. I have to admit it was one of the most boring concerts I’ve ever seen in my life. That said, I had some sympathy for the deadheads traveling around and following the Grateful Dead.
They were just bumming around and getting stoned and whatever else they were doing. They were not bothering anybody and they seemed good-natured enough. I remember some of them were selling food and other things in the parking lot at the show. I bought some spaghetti with sauce a one guy. Maybe my purchase bought him a gallon of gas to help him get to the next concert.
So That People Can Have Jobs, I Avoid Doing Online What I Can Do With A Real Person In The Real World
To the extent it can be avoided, I never do online or on any automated system what can be done with a real person in the real world.
Working people need to help other working people keep their jobs.
Some examples—
I don’t have direct deposit of my paycheck at work. The bank teller needs a job.
When I book a car rental, I do so over the phone and not by computer.
I take the real paper at home instead of only reading the online edition. When I go out of town, I put delivery of the paper on hold by calling someone in the circulation department instead of doing it by computer.
I try to buy things in stores and not online. I’m not perfect in this respect, but I do pretty good.
When I go to the racetrack with my father when visiting back home in Cincinnati, I use the ticket window staffed by a person to make a bet and not the automated ticket machine.
At the airport parking lot when it is time to pay up, I go to a booth with a person in it rather than to a no-person exit.
When calling the cable company or the utlilty company, I hit the zero on my phone until I get a person.
I use computers in my life. I use technology in many different ways. I know many will value what they define as convenience over the the benefits of helping create work for people to do.
Some may need the savings that, sometimes, come from buying online. Though over the longer haul, when we have no work, it will be very hard to save money that we are not earning.
I can’t do anything about what other people choose to do.
I’m simply saying that for myself, I try to use the services of human beings so that people will have jobs.
I ask you to please consider this course in your daily life to the extent you feel you are able.
Iraq & Afghanistan Veterans Have High Unemployment Rates
From the article—
“The economic downturn is hitting Iraq and Afghanistan veterans harder than other workers — one in nine are now out of work — and may be encouraging some troops to remain in the service, according to Labor Department records and military officials.
The 11.2% jobless rate for veterans who served in Iraq and Afghanistan and who are 18 and older rose 4 percentage points in the past year. That’s significantly higher than the corresponding 8.8% rate for non-veterans in the same age group, says Labor Department economist Jim Walker.”
This high unemployment is the thanks we offer as a nation for the service these veterans have offered.
Whether it be children, old folks, or veterans, the widespread expression of public sentiment in our society for any group of people is often the kiss of death.
We often despise people who remind us of our potential weakness as individuals and who remind us of our obligations to others.
Recession Is Like A Hurricane That Goes On For Months And Has No Evacuation Route
More jobs cuts today. It seems that big job cuts take place every day.
This recession is like hurricane that goes on day after day and month after month. There is no evacuation route. You can’t just stock up on food and water and wait for it to pass.
What will be left after it passes? It is hard to imagine at this point that the damage will not be significant.
In Support Of Loans For The American Auto Industry
I support the extension of loans by the United States government to help save the American auto industry. What the auto companies are looking for are loans and not handouts.
The United Auto Workers union has agreed to major concessions to help the big three car makers and to help gain approval in Congress to pass the loan package.
Republicans in Congress would love to see the UAW go away as payback for its support of Democratic candidates. Revenge is not a suitable justification for endangering the jobs of hundreds of thousands of people.
One poll suggests the American people are currently opposed to what is being termed–incorrectly–as a “bailout.”
One can understand the fatigue with government money for private concerns. But where are we going to work in this country? How are we going to live? Where are decent jobs going to be found?
I think most people understand–on some level they understand–that what is at issue in this current economic downturn is not simply “when will it end” or “how will I get by for the next few months.”
Rather, the issue is that when the recession has passed as determined by the so-called economic experts, will we as individuals, as families, as members of a community, have viable economic futures? What jobs will be left with salaries and benefits able to sustain us?
I’m not going to oppose this loan package because of private jets, or political calculations, or pointless resentment over what UAW workers are earning. Instead, I’m going to support the future well-being of American workers.
By advocating for other working people, we are advocating for ourselves. By supporting this temporary assistance to the American Auto industry, we are backing the long term economic prospects of all Americans.