Why Does America Have Such High Unemployment?
By lucas@endneoliberalism On 30 Apr, 2013 At 10:01 AM | Categorized As Neoliberal Alert, raising the minimum wage, Taxes | With 0 Comments

Pennsylvania Governor thinks unemployment is high because poor people like drugs. Tom Corbett (R) said that people don’t have jobs because they can’t pass a drug test to explain his poor economic results as governor and even worse job creation track record.

But according to Jesse Rothstein, an associate professor of public policy and economics at Berkeley and former chief economist at the U.S. Department of Labor, the problem with unemployment is due to lack of demand.

Rothstein’s economic assessment eliminates all invalid arguments about the impact of profitability and taxation on the job market.

America’s high unemployment rate is not due to a corporate recession because corporations have earned record profits since 2010!. Unemployment is not due to high taxation either since many of these profitable corporations pay the lowest effective rate in the world. Some almost matched their profits with subsidies! For example, Pepco Holdings paid -57.6% on pretax profits of $882 million, General Electric -45.4% on pretax profits of $10 billion, Paccar -30.5% on $365 million, and PG&E -21.2% on $.9 billion pre-tax profits. Six other profitable corporations received subsidies of more than 10% of their profits.

America’s high unemployment rate is due to the Neoliberal market equilibrium that allows multinational corporations to move jobs away to countries that had been depressed by totalitarian interventions and where people now work for slave-wages. This Neoliberal equilibrium allows corporations to move jobs away even when they are already extremely profitable. (End Neoliberalism e-book)

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Picture credit By Mike Litch Notionscapital.com

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