With many Americans struggling daily to survive, even as the wealthy grow wealthier daily across the nation, hopes for a full economic recovery have been clouded by a new analysis saying that American workers are simply not benefiting from the Obama economy. Today, March 4, 2013, Lisa Barron has reported for Money News, Few Workers Benefiting From Obama Economy.
The New York Times has reported that the economic recovery is helping major corporations, but is not benefiting American workers. It has been projected the situation for American workers could get worse as the new automatic spending cuts begin to take effect. Ethan Harris, co-head of global economics at Bank of America Merrill Lynch, has said, “So far in this recovery, corporations have captured an unusually high share of the income gains. The U.S. corporate sector is in a lot better health than the overall economy.
And until we get a full recovery in the labor market, this will persist.”
Newsmax has also published this story. While profits helped to push the Dow Jones Industrial average past 14,000 last week, which is close to a record high, unemployment has nevertheless been stuck at just below 8 percent ever since September. At a time when there are millions out of work, there is now little pressure on companies to raise salaries. And, experts say gains in productivity are allowing corporations to increase sales without adding workers. Furthermore, experts have estimated that the $85 billion in automatic cuts, which take effect between now and Sept. 30, as part of the budget sequestration, may cost an additional 700,000 jobs. However, the bottom line in corporate America is not anticipated to be substantially hit by the cuts.