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Robert Reich Confirms Permanent Destruction of Jobs in America
Posted By admin On December 3, 2009 @ 5:13 am In Commentary | Comments Disabled
Washington’s Blog 
Thursday, Dec 3rd, 2009
Former Labor Secretary Robert Reich writes  today:
The basic assumption that jobs will eventually return when the economy recovers is probably wrong. Some jobs will come back, of course. But the reality that no one wants to talk about is a structural change in the economy that’s been going on for years but which the Great Recession has dramatically accelerated.
Under the pressure of this awful recession, many companies have found ways to cut their payrolls for good. They’ve discovered that new software and computer technologies have made workers in Asia and Latin America just about as productive as Americans, and that the Internet allows far more work to be efficiently outsourced abroad.
This means many Americans won’t be rehired unless they’re willing to settle for much lower wages and benefits. Today’s official unemployment numbers hide the extent to which Americans are already on this path. Among those with jobs, a large and growing number have had to accept lower pay as a condition for keeping them. Or they’ve lost higher-paying jobs and are now in a new ones that pays less.
Yet reducing unemployment by cutting wages merely exchanges one problem for another. We’ll get jobs back but have more people working for pay they consider inadequate, more working families at or near poverty, and widening inequality. The nation will also have a harder time restarting the economy because so many more Americans lack the money they need to buy all the goods and services the economy can produce.
Reich is only confirming what many others have said:
[We've had a] permanent destruction of hundreds of thousands of jobs in industries from housing to finance.
Companies “really have diminished their willingness to hire labor for any production level,” Silvia said. “It’s really a strategic change,” where companies will be keeping fewer employees for any particular level of sales, in good times and bad, he said.
The number of people not on temporary layoff surged 220,000 in August and the level continues to reach new highs, now at 8.1 million. This accounts for 53.9% of the unemployed — again a record high — and this is a proxy for permanent job loss, in other words, these jobs are not coming back. Against that backdrop, the number of people who have been looking for a job for at least six months with no success rose a further half-percent in August, to stand at 5 million — the long-term unemployed now represent a record 33% of the total pool of joblessness.
And see this .
Heck of a job, Larry, Tim and Ben.
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URLs in this post:
 Washington’s Blog: http://www.washingtonsblog.com/2009/12/robert-reich-confirms-permanent.html
 writes: http://www.huffingtonpost.com/robert-reich/the-economic-reality-that_b_377167.html
 told: http://www.bloomberg.com/apps/news?pid=20601109&sid=aDx_Srx0Sv8Q
 says: http://www.bloomberg.com/apps/news?pid=20601068&sid=aGBkhROUjNds
 writes: http://www.zerohedge.com/sites/default/files/Lunch_with_Dave_090409.pdf
 this: http://www.msnbc.msn.com/id/33384835/ns/business-stocks_and_economy
 Image: http://www.prisonplanet.com/2009_christmas_special.htm
 U.S. Suffering Permanent Destruction of Jobs: http://www.prisonplanet.com/u-s-suffering-permanent-destruction-of-jobs.html
 ROBERT REICH: Get Ready For A Obama-Clinton Presidential Ticket: http://www.prisonplanet.com/robert-reich-get-ready-for-a-obama-clinton-presidential-ticket.html
 Robert Reich On Health Care: Old People Have to Die: http://www.prisonplanet.com/robert-reich-on-health-care-old-people-have-to-die.html
 Economic Failure: 58 Percent Of The Jobs Being Created Are Low Paying Jobs: http://www.prisonplanet.com/economic-failure-58-percent-of-the-jobs-being-created-are-low-paying-jobs.html
 Robert Reich: “Shame Won’t Work. Only Political Muscle and Courage Will”: http://www.prisonplanet.com/robert-reich-shame-wont-work-only-political-muscle-and-courage-will.html
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