Profits Up at GM! And You're Still Unemployed

**Granite** · 14th August 2010 01:03 AM

The auto giant is installing a new CEO after posting a $1.3 billion quarterly profit. But Michael Moore says most American CEOs don’t want to improve the economy—and hiring isn’t around the corner.

So General Motors is back to making billions in profit. And if the past is any guide, we know what that means: time for some layoffs!

Or maybe not. Back in the '80s and '90s, when GM was consistently posting giant profits, they were simultaneously firing tens of thousands of workers in my hometown of Flint and across Michigan. Right now it looks like the only person being canned is CEO Edward Whitacre. (Only last week Whitacre was saying he wasn't planning to leave anytime soon—kind of ironic that the former president of the Boy Scouts of America failed to Be Prepared.)

But if they're not laying people off yet, they're also not hiring.

During the first half of 2010, GM made $2.2 billion in profit, yet according to The Wall Street Journal, they've only added 2,000 jobs in all of North America, taking their workforce from 113,000 to 115,000

read more at: GM Profits: Michael Moore on Unemployment, GM Hiring, New CEO - The Daily Beast

Of course, Moore is a left-wing Liberal, so what does HE know, right?

**Inkslinger** · 14th August 2010 03:32 AM

Originally Posted by JoJoGunne

Of course, Moore is a left-wing Liberal, so what does HE know, right?

Yet you posted this, so what do you actually know?

**mtm1963** · 14th August 2010 04:28 AM

moore is always bitching about something. i suppose he wants GM to go back to their bloated ways of doing business.

mtm1963

**NiteGuy** · 14th August 2010 07:01 AM

Originally Posted by mtm1963

moore is always bitching about something. i suppose he wants GM to go back to their bloated ways of doing business.

I don't know about that. On the other hand, he does have a point. According to the BLS earlier this month, a lot of non-farm businesses are running record profits, and have amassed more than a trillion dollars combined. Not a lot of hiring going on behind all that cash, even though the BLS also reported an increase in hours worked, but a relatively flat average income, and a decrease in real productivity for the first time in decades. In other words, businesses have decided that they would rather hoard the cash than pay current employees more for the additional work put in, or to hire more employees, until they see more money being spent on product.

That's decidedly not the way to get the economy going again, because if people aren't working, or aren't making pay increases for harder work, they aren't going to spend money, especially on the more expensive "durable goods", and they are going to continue spending as little as possible on everything else. And there's not a damn thing that the Democrats or Republicans can do to shake that money loose.

It's a catch-22. Businesses won't hire new employees until people start spending more, and people won't start spending more until they have a job, or at least a decent pay raise.

What are you gonna do?

**Jose Jimenez** · 14th August 2010 08:18 AM

This is good for the American people that GM is making money. Next year they will begin their IPO, no? The American people own 61% and 300 million shares of GM, no? If GM is profitable the stock will sell well. If it is not, then everyone will lose.

**mtm1963** · 14th August 2010 08:58 AM

Originally Posted by NiteGuy

I don't know about that. On the other hand, he does have a point. According to the BLS earlier this month, a lot of non-farm businesses are running record profits, and have amassed more than a trillion dollars combined. Not a lot of hiring going on behind all that cash, even though the BLS also reported an increase in hours worked, but a relatively flat average income, and a decrease in real productivity for the first time in decades. In other words, businesses have decided that they would rather hoard the cash than pay current employees more for the additional work put in, or to hire more employees, until they see more money being spent on product.

That's decidedly not the way to get the economy going again, because if people aren't working, or aren't making pay increases for harder work, they aren't going to spend money, especially on the more expensive "durable goods", and they are going to continue spending as little as possible on everything else. And there's not a damn thing that the Democrats or Republicans can do to shake that money loose.

It's a catch-22. Businesses won't hire new employees until people start spending more, and people won't start spending more until they have a job, or at least a decent pay raise.

What are you gonna do?

there is too much uncertainty about the economy. businesses are holding to their cash to protect themsleves, just like the average person is doing.

yes a catch-22!!

mtm1963

**Granite** · 14th August 2010 06:16 PM

This "catch-22" is being caused by uncertainty about what the Democrats are going to do to businesses and what they are going to do to taxes. Not even the Democrats know what they are going to do. They have been passing legislation at moments of opportunity and without any care for what the proper moment should be or what the unintended consequences might be.

The resulting uncertainty is pervading both businesses and individual consumers, resulting in a stagnated recovery.

Thanks,
Pathetic Democrats!!

**angryamerican** · 14th August 2010 06:25 PM

Originally Posted by JoJoGunne

Thanks,
Pathetic Democrats!!

Dems didn't cause this mess..What they should do is bring back more Conservative Governing..Raise taxes and regulate businesses so they won't be so large they can't fail or need to be bailed out. Teddy knew this, broke trusts..Ike knew this, raised top end rates to 91%.
As far as profits and no hiring..duh..the rich rarly spend thier money on business expansion, Moore should know this..

**Granite** · 14th August 2010 07:07 PM

Originally Posted by angryamerican

Dems didn't cause this mess..What they should do is bring back more Conservative Governing..Raise taxes and regulate businesses so they won't be so large they can't fail or need to be bailed out. Teddy knew this, broke trusts..Ike knew this, raised top end rates to 91%.
As far as profits and no hiring..duh..the rich rarly spend thier money on business expansion, Moore should know this..

The highlighted statement can be, and has been, debated.

The rest, while oppressive, would at least let business know where they stand...a much better situation than we have right now. Nobody knows which way to jump because they just might be jumping into the fire. The result...the non-recovery we now enjoy.

**Telecaster** · 14th August 2010 07:56 PM

Originally Posted by angryamerican

Dems didn't cause this mess..What they should do is bring back more Conservative Governing..Raise taxes and regulate businesses so they won't be so large they can't fail or need to be bailed out. Teddy knew this, broke trusts..Ike knew this, raised top end rates to 91%.
As far as profits and no hiring..duh..the rich rarly spend thier money on business expansion, Moore should know this..

I sure would like to know who amongst the rich business owners you are targeting with this critique. You've made this claim before. How exactly do they pay the staff they do hold? Somebody is buying much of the capital equipment that continues to keep the manufacturers of that equipment in business.

Are you implying that every business MUST maintain continual expansion?!