I received this email from a close friend, a Republican of the old school:
“When 50+ years ago Engine Charlie Wilson said what’s good for General Motors is good for America, he was mostly right. Now corporations have turned that aphorism on its head.”
Tuesday, Dec 28, 2010 08:03 ET
American consumers have little to do with the big profits many top American corporations are now racking up
By PALLAVI GOGOI, Associated Press
Corporate profits are up. Stock prices are up. So why isn’t anyone hiring?
Actually, many American companies are — just maybe not in your town. They’re hiring overseas, where sales are surging and the pipeline of orders is fat.
EXTRACT: Harvard Business School Dean Nitin Nohria worries that the trend could be dangerous. In an article in the November issue of the Harvard Business Review, he says that if U.S. businesses keep prospering while Americans are struggling, business leaders will lose legitimacy in society. He exhorted business leaders to find a way to link growth with job creation at home.
Other economists, like Columbia University’s Sachs, say multinational corporations have no choice, especially now that the quality of the global work force has improved. Sachs points out that the U.S. is falling in most global rankings for higher education while others are rising.
“We are not fulfilling the educational needs of our young people,” says Sachs. “In a globalized world, there are serious consequences to that.”