Friday December 12, 2003

ROLE REVERSAL. LA Times:

Last month, the U.S. Labor Department in Washington said that employers added a net 126,000 payroll jobs in October. In all, the economy has added 286,000 positions over the last three months -- the best showing since early 2001.

But 2.4 million more jobs would be needed to regain all the ground lost since March 2001, when the last recession began. When, or even if, those positions will come back is far from clear.

Here's the problem: Many companies like the notion of a jobless recovery. The leaner they can keep their U.S. payrolls -- by using overtime, automating the production process and outsourcing jobs overseas -- the higher their profits.

See, businesses aspire to increase their profits, and if they can earn more while paying fewer people, they will. That's what drives productivity up.

Yet more and more, Bush apologists act as if productivity jumps were caused by increased self-esteem. Here's former GE head Jack Welch -- previously known as a hard-headed businessman -- telling reporters to stop talking down our Tinkerbell recovery:

Not only can millions of hardworking people celebrate -- they should. They've earned the right. That's why we can't rain all over their efforts --their motivation and innovative spirit and can-do attitudes. Those good feelings, as any economist will tell you, are key drivers of company productivity and consumer confidence. The fact is a recovery will be a lot harder if we keep saying "but" about damn good news. (Italics mine.)

"As any economist will tell you?" Sure, maybe after three hours of open bar at an AEI dinner, one of them will slur, "Yeah, it's all a buncha bullshit, who knows what makes the economy work, I sure as hell don't." But does Welch really think that happy thoughts are what squeeze extra juice out of the American worker? (Also, does he think we really "celebrate" increased productivity? Maybe he saw some white-collar slaves slogging to the bar after an 18-hour day to get drunk and pass out, and thought, "Oh look -- they're celebrating!)

Isn't there something screwy here? Liberals -- allegedly airy, unrealistic, pie-in-the-sky sorts -- are patiently pointing out the common-sense fact that increased productivity will not necessarily boost employment, and may actually depress it, while conservatives -- allegedly the tough, practical, businesslike "grown-ups" -- are asking us to clap our hands if we believe.