On Monday there was an article in the U.S. News and World Report on why Politicians aren't able to help create real jobs for those who are unemployed. This article comes out just when the Obama administration projected that unemployment rate would fall steadily in the next for years. It also explains as to why jobs are harder to come back to nowadays as oppose to the “downturn” in unemployment in the past few decades, which in those times, jobs would be returned quickly after the recession. The reason why U.S. is more unstable and dealing with a difficult task in creating more jobs is, because in 1972 and 1982 the U.S. Economy “less globalized and more self-contained.”
It was very at that time for foreign companies to compete with those of the Americans. And once the recession ended the previous decades, employers were simply hired again and the economy went back to normal. This article illustrates how Marx system doesn't necessarily work in the U.S. economy because of its instability. Job losses have been increasing ever since the economy has been bad and advisors are now having trouble seeing what will be coming next. The younger and older people are looking for jobs to help support their families, which results them to work at any job and at any wage or salary. Marx states that the competition between workers when employment is suffering. With the U.S. Economy struggling to come back, and mind you it is taking a little while to do so, we see how this effects everyone in the U.S. in some way or form.
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This is interesting, especially in terms of the comparison to previous recessions and recoveries. I was thinking that another reason for the "jobless recovery" might be that much of the resurgence in profitability has come from an increase in efficiency rather than an increase in production. That is, the reason stock prices are rising is not because the companies are getting more business, but because they have figured out how to do the same work with less expenses. This could be seen as an example of how good times for the owners don't necessarily mean good times for the workers.
ReplyDeleteI like this article because it illustrates a point that obviously a change has to be made in order to better conditions for everyone in America. It seems as though jobs are created out of thin air, and lower wages and unemployment come about. I agree with your viewpoints and Spencer I also agree with you, because technology is becoming more and more advanced we are able to engage in activities in less time than before due to the power of machines. my question is, because the advances of machines, maybe that is the reason more and more are unemployed because machines take the jobs of humans? interesting to think about.
ReplyDeleteI agree with the fact that Marx system does not work in the U.S. because of instability.The economy has been rough for quite a while. Job losses have increased. I also agree with the fact that people now a days are desperate and willing to work for anything as long as it pays. the economy is slowly rising and will always have its ups and downs. In regards, to Spencers comment on the rising of stock prices. Unless I misunderstood his opinion, the rising of stock prices does not deal with whether a company is doing well and efficient only but on investor/consumer confidence.
ReplyDeleteI like how you incorporated Marx with this article. It makes sense how the jobs are affected by technology. Spencer makes a good point about the stock prices I never thought about it that way.
ReplyDeleteIt is very interesting how you compared the current predicament the US is in today to the words of Karl Marx. Thirty years ago, the US worker could compete with workers of other countries because the wage discrepancy was much less. Now it is more economically feasible for business owners to have impoverished people from other countries working for them. Marx stated that ages are the capitalist paying the labourer for a particular amount of time worked. Its too expensive for businesses that are in the red to keep paying labourers exorbinant wages when they can get the same work done for 5 cents an hour
ReplyDeleteI absolutely agree that this method doesnt work in the united states because of our economic instability. My family has suffered from this first hand with my Dad working in NYC and being fired from his job leaving him to take a job that pays less.
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