60 Minutes video clip on Automation and Technological Innovation Replacing Workers --> http://www.cbsnews.com/video/watch/?id=50154583n
Jack Welch, former chairman of General Electric (September 2012)
"one great statistic is most of these businesses are operating at about 70% or 80% of the 2007 peak in revenue.
their profitability is back to 2007/2008 levels.
because they cut the heck out of jobs.
yes. 30% fewer people working in these jobs.
and automation. the old belly to belly salesman is replaced with an ipad and other information. we don't have to have all these people chasing inventories.
the stories of productivity are incredible in these plants. you're not going to get some of those old jobs back. unless you get big demand. because you've got to put more people in the street for that. but in general, the stories are the same.
oh, we're recovering. yeah, we're back to 75% of where we were in '07. but our profits are back to where they were. but we're 30% down in people. it's a common theme. business after business after business."
http://video.cnbc.com/gallery/?video=3000117011&play=1 (specific comments start at 2:34 mark)
"What we have come to know as 'the jobless recovery' may be the new post-recession norm, as employers rebuild their workforces from scratch, take more time to vet candidates, and find ways to operate with fewer workers," said Chief Executive Officer John Challenger.
"To put that in perspective ... basically, every one of the 8,030,000 jobs created between August 2003 and January 2008* plus another 700,000 were wiped out," Challenger said.
Challenger, however, said jobs were being added to the economy at a faster pace than in the previous two recessions.
The problem is that the job losses were huge.
"It is just taking longer to rebuild due to the fact that we started in a much deeper hole," Challenger said.
http://www.upi.com/Business_News/20...are-history/UPI-36981371758288/#ixzz2eLl3VcAd
http://economix.blogs.nytimes.com/2012/05/30/the-asymmetric-recovery/?_r=0
* (I believe January 2008 was the peak of bubble economy employment)
Last edited: