Tuesday, 20 September 2011

'Corporations Cause US Unemployment'

“So as long as Wall Street and the corporations profit by moving American jobs to countries where labor costs are substantially lower, there can be no recovery of the American economy,” Paul Craig Roberts, the former Assistant Secretary of US Treasury said.

He pointed to millions of middle class jobs which have been outsourced by US corporations to countries like China and India where labor is cheap.

“Wall Street is energized about its profits, and it makes its profits by arbitraging labor,” the former Treasury official added.

As the jobs move off the tax base, the consumer income, consumer demand and the gross domestic product of the economy will diminish, Roberts argued.

[Posted at the SpookyWeather blog, September 20th, 2011.]

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