The Great Recession resulted in the loss of 8 million jobs in the United States. Since the recovery started 1 million jobs have been added to the national payrolls. Neither the Republicans nor Democrats have enacted a single piece of legislation that is likely to bring back those lost jobs.
Why aren’t U.S. corporations hiring?
Actually, many of them are. They’re just not hiring Americans. The reason is that most Americans corporations have become global in their operations. U.S. corporations have slashed their American payrolls by 500,000 jobs since the start of the Great Recession. At the same time they have hired over 700,000 workers overseas. Those new hires are not just in Asia. They are in Mexico and other Latin American nations too. Technicolor’s DVD/CD production facilities were in three locations in the United States but are now in Monterey, Mexico. That one company alone employed more than 3,000 Americans before the move. In 1992 53% of Ford Motor Company employees were in the United States and Canada but today that number has declined to 37%.
The reason is very simple. The cost of labor in Mexico is one fifth the cost in United States and Canada. Chinese workers assembling computers, iPads and other electronic devices are earning less than $400.00 per month (Foxconn, a Taiwanese company is the primary supplier for both H-P and Dell as well as Apple). Foxconn is expanding to other countries. Just today there are reports that the company will be opening an assembly facility in Brazil.
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