From Randall Forsythe writing in Barron's (subscription required):
THE RISING TIDE LIFTS ALL SHIPS, but the galley slaves aren't feeling it. They're rowing harder than ever to make up for their colleagues who have been thrown overboard (getting rid of that extra weight improves the vessel's efficiency).
Now, after a long spate in the doldrums, the captain has called for those still manning the oars to pick up the pace to move some cargoes,
The genius of American business for doing more with less has been evident in the parade of earnings reports showing profits improving far more than the revenue that produces them. The secret: Productivity soared at a 9.5% annual rate in the third quarter, a stunning increase..
Overtime also ticked up last month, but as a money manager related privately, his brother who runs a manufacturing plant has his workers putting in seven-day-a-week shifts rather than adding to payrolls. In other words, keep rowing.
In other words, Team Obama, with his anti-free enterprise rhetoric and policies (empowering unions, imposing more regulations), and with Harry Reid and Nancy Pelosi imposing a devastating burden for each employee at every business (particularly devastating for small businesses where most job growth occurs), the Democrats have created a dynamic that actively discourages hiring. But it also encourages businesses to run their remaining employees ragged (or outsource jobs to overseas nations or replace people with equipment).
Is any business going to be eager to hire any additional employee knowing that it will be saddled with huge health care costs? The little guy is going to be hurt - and badly.
We are in for a long term problem with employment courtesy of the President and his "progressive" colleagues in Congress.
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