Corporate profits are up but why are people still hurting?
If you listen to the Rick Smith Show you’ll hear Rick talk about the nationwide tour he just finished. During that tour he saw that joblessness and poverty remain a major problem. In some towns both the businesses and houses are boarded up.
Yet for corporate America, the people Republicans like to call the “job creators,” their profits are rising. The parent company of American Airlines made 200 million, Verizon is doing well, the railroad company Union Pacific turned a profit and here’s Johnson Controls with some good news. Then there’s Wall Street with BlackRock being up 32 percent and Morgan Stanley also turning a profit. All of this appeared on my rss reader today.
So what’s the problem? Why aren’t there more jobs out there? Why are people still losing their houses? Since the economic downturn of 2008 Wall Street has more than rebounded. Why aren’t they doing more to help homeowners who are underwater on their mortgages? If Wall Street does nothing, then local governments will start turning to the eminent domain strategy.
In closing, maybe its like Nick Hanauer said all along, the real job creators are the customers, who are in the end working people. Give them jobs, education, healthcare and housing and chances are the economy would be better for it. If you continue to run an economy that gives all the spoils to the 1 percent and the top tenth of that 1 percent, then that economy will continue to suffer.