Friday, August 30, 2013

How Come No Jobs And High Prices?

       I was reading Mother Jones just now and a comment on one of the articles got me to thinking. I know, that's hard to believe, but it's true. There are lots of reasons why jobs remain scarce in America. Like outsourcing and shipping jobs overseas and mechanization. But here's one I hadn't thought of  before. And it's just as true as can be.
       For the last few decades, there have been so many mergers of companies in America it's hard to keep track. In fact for the average person who follows that stuff, it's almost impossible. Just imagine how hard it is for the rest of us. So what? So every time companies merge it means fewer jobs. Simple, cost savings is one of the main reasons for mergers. The more mergers, the fewer jobs.
      But it means more than just that. It means less competition. Less competition means higher prices. And it means lower wages for the employees and much higher compensation for management, especially CEOs. With less competition there's little reason to keep prices low. It also means fewer job opportunities for employees to consider. Then by keeping wages low for workers, CEOs can demand more and higher compensation.
       So who's fault is it? Corporations are always looking for ways to enhance their bottom line. That's just smart business. CEO's love it because they make out great even if they lose their jobs because of golden parachutes. What's not to love about that? Workers don't get a say. They aren't considered in the plan at all. The only one left to stop these marches to consolidation is the government. It is government's job after all.
       But for the last few decades, government has pretty much sat back and watched the changes take place without lifting a hand. In fact it's big news when a merger is stopped by the government. Why? Where do you think the money comes from to run campaigns? It comes from the giant companies that do the merging? Nobody bites the hand that feeds them, unless they have a desire to get out of politics. How many politicians do you know that have that death wish? Most would have trouble doing an honest day's work.

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