Record American Corporate Profits Will Be Primarily Invested Overseas
HopeTracker| The Economist reports that American corporations have never had it so good, with over half of the S&P 500 reporting an average of 17% increases in profits. The Dow has again crossed 1200.
With most of the growth in profits coming from cost cutting and increased productivity in American workers afraid of losing their jobs, some analysts say the momentum can’t continue.
“Around 90% of the productivity growth in corporate America has come from cost-cutting, and that is now reaching its limit,” says Carsten Stendevad of Citigroup’s corporate-advisory arm. . .
Others disagree. “There is a lot more juice to be squeezed out of the lemon,” insists Hal Sirkin of BCG, a consultancy. Firms brag about having introduced “lean systems”, but most have done only “10-25% of what they could do”, says Mr Sirkin.
Bottom line, the Economist confirms what business media writes with consistency. The profits will be reinvested in growing markets out of America. That’s where the money is, and American workers don’t have the necessary educational and work ethic skills to support extensive business investment here.
Share Article Mon, February 7, 2011 1 Comment in America, Women's Lives tagged American education, American workers, corporate profits, economy, global economy
Reader Comments (1)
The American worker, in point of fact all of the American people, have been utterly betrayed by the treasonous actions of corporate leadership. It is time for a grass roots political movement to make business leaders responsible for the impact of their actions upon the land of their birth. I should think a loyalty oath is in order, with their citizenship on the line, and a dedicated force of assassins to hunt them world wide with the full capability of the United States military machine if they betray their oath. Send the jobs overseas when the American people are fully employed, not before.
I'm amazed the Tea party hasn't already picked up on this thought, that they haven't indicates the conservative mentality is still, like the abused woman, making excuses for the one doing the abusing. I'm sure there is some heavy propaganda, oh excuse me, I'm supposed to call it something else, in play to make sure that thought doesn't dawn on those most impacted by the traitors.