Corporate profits are at record highs. The economy is producing as much as before the downturn. Yet business spending goes more to equipment purchases than hiring employees. Consider the following:
- Equipment purchases are up twenty-six per cent, aided by tax incentives.
- Most of the equipment is manufactured overseas.
- Equipment costs have dropped by two per cent since the recovery.
Yet news for workers remains bleak. There are seven million fewer jobs in 2011 than at the start of the recovery. Hiring by businesses is up only two per cent since 2009, the start date for the recovery. Labor costs have risen over six per cent during the period, mostly due to health care increases.
This is devastating news for working people.