Obama’s Jobs Council Should Practice What They Preach
President Obama organized a job council that the administration will ask for advice on solving the country’s unemployment problem. But five of the largest companies in the council are focused more on their overseas operations for growth.
The companies that rely on foreign revenues for most of their sales are General Electric, Intel, Citigroup, DuPont, and Proctor & Gamble. This shift in their revenues occurred in the past few years. When other countries’ economies recovered, these companies took advantage.
The Obama administration wants the private sector to grow, which it hopes would bring in more jobs in the United States. But analysts say that the connection between the health of large firms and the economy is not relevant anymore due to globalization.
In general, US multinational companies decreased their workforce in the country by 2.9 million from 1999 and 2009. This is according to a recent data from the Department of Commerce. In the same period, the companies added 2.4 million employees overseas.
The companies’ profit numbers have already returned to the level before the financial crisis and the pay rate for executives are moving up as well. But what’s depressing is that workers’ income remained the same and the unemployment rate is still at 9.1 percent.