U.S. Corporate Profits Rose in Third Quarter – NYTimes.comNovember 23, 2010
A new report in shows that businesses in this country are making money faster than ever before. At the same time, they are not hiring anyone, so the effect is not seen at the local level. Here is a quote from the article:
American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or noninflation-adjusted terms.
Why are they making profits but not hiring anyone?
1. They have found that with the Internet and overseas work forces, businesses no longer have to hire American employees to get the same amount of work done.
2. Much of the profit businesses are making is temporary, based upon the artificial influx of cash from the Federal Reserve.
3. Many of these businesses are actually foreign owned and have no obligation or commitment to the American public.