Kuttner does it again.
Once again, the job numbers are dismal. In January, the U.S. economy created just 36,000 domestic jobs, far below the roughly 145,000 that economists had forecast. The unemployment rate fell, to 9 percent, but only because more and more discouraged workers are giving up and leaving the workforce.
The U.S. still has a jobs gap of about 14 million jobs, and that number is increasing as the labor force grows. Counting people who've given up, or who are working part time when they want full time jobs, the real unemployment number is around 17 percent. America now has about 25 million people either out of work or underemployed.
Meanwhile, corporate profits continue to set records. Profits in the third quarter of 2010 were 1.659 trillion, about 28 percent higher than a year before, and the highest year-to-year increase on record.
What's going on? Very simply, America's corporations no longer need America's workers.
Given the ownership of legislators at national and state levels by Kochs and Pope, this bit of news is not helpful, plain scary. Add to that the fact that the corporations are sitting on over $2 trillion in cash, awaiting the cessation of "uncertainties", such as Obama leaving the WH(despite his current sucking up to them).
A capital strike is when companies have the capital but refuse to spend it, particularly on labor. It was employed by the wealthy and corporations in the 1930s and has been said to have been a part of the problem. In other words, capital sits on the money until the political climate is to their likely and labor is broken and compliant. We have a capital strike in the US, particularly regarding American labor. All they want is unbridled access to cheap labor, an environment to despoil and a compliant population. Sounds like class warfare to me.