Revised statistics released this week showed that the US gross domestic product for the third quarter of 2010 beat estimates and grew at a rate of 2.5 percent. This growth signals the fact that corporations are showing ever-increasing profits, and that the recession may be on the way out. On top of this, corporate profits are surging up to $1.66 trillion dollars from the previous year.
Unfortunately for workers and unemployed Americans, this also demonstrates that these corporations are creating these profits by using recession-era cuts to get more out of a harder-worked, diminished workforce while unemployment continues to grip the country. Companies are focusing on the bottom line and not on putting this country back to work, and are squeezing the few employees with jobs to work harder and make up the difference.
When pressed as to why these companies are not creating jobs, most respond that the economy is still uncertain. However, the only uncertainty for many of these corporations and their executives is how to spend the mountains of cash that they have amassed by maintaining production with a lower work forces. The focus on profits over jobs is incredibly disappointing, and shows the ever increasing gulf between the haves and have-nots in this current economic climate.