There are those on Capitol Hill and within the Mainstream Media who would have you believe we are in the midst of a glorious recovery. Things are getting better, people “feel” better, unemployment is dropping and the housing market is on the rise. Statements are issued to the press to reinforce their claims.
“Today’s employment report provides further evidence that the U.S. economy is continuing to recover from the worst downturn since the Great Depression,” Alan Krueger, chairman of the White House Council of Economic Advisers, said in a statement.
I tend to wonder if this one of those if you believe it, it must be true exercises. I wonder if these people are living in a cave or simply choosing to ignore the reality that surrounds them. Of course they will say that we are better off than we were four years ago but conveniently fail to mention anything about the open ended money printing that is fueling most of this *ahem* recovery.
If things are going so well why are so many people losing their jobs? Why are companies choosing to let people go so close to the Holidays? It must be because the economy is skyrocketing towards recovery! Or maybe there is no recovery at all, merely an economy on life support which continues to be propped up by massive injections of fabricated cash.
A mounting number of companies, including many tech firms, have been announcing layoffs, prompting some to worry about the proliferation of pink slips amid third-quarter earnings reports showing nearly zero growth. “We’ve seen a spate of bad earnings announcements,” says John Challenger of outplacement firm Challenger Gray & Christmas. “Companies often take fast action,” which results in job cuts.
In September it was reported by the BLS that over 122,000 workers were affected by layoffs. Below are a list of some of the more recent layoffs that have been announced. People who thought they had a job going into the Holiday season but now will be facing unemployment lines, lengthy job searches, all while wondering how to put food on the table.
- Energizer: 1500 layoffs.
- Boeing: 30% cuts in management positions.
- UBS: 30% of investment bankers laid off.
- Shaw Supermarkets: 700 layoffs.
- Martha Stewart: 70 layoffs.
- Anniston Weapons Incinerator: 50 layoffs.
Welch Allyn, a company that manufactures medical diagnostic equipment in central New York, announced in September that they would be laying off 275 employees, or roughly 10% of their workforce over the next three years. One of the major reasons discussed for the layoffs was a proactive response to the Medical Device Tax mandated by the new healthcare law.
Dana Holding Corp.
As recently as a week ago, a global auto parts manufacturing company in Ohio known as Dana Holding Corp., warned their employees of potential layoffs, citing “$24 million over the next six years in additional U.S. health care expenses”. After laying off several white collar staffers, company insiders have hinted at more to come. The company will have to cover the additional $24 million cost somehow, which will likely equate to numerous cuts in their current workforce of 25,500 worldwide.
One of the biggest medical device manufacturers in the world, Stryker will close their facility in Orchard Park, New York, eliminating 96 jobs in December. Worse, they plan on countering the medical device tax in Obamacare by slashing 5% of their global workforce – an estimated 1,170 positions.
In October of 2009, Boston Scientific CEO Ray Elliott, warned that proposed taxes in the health care reform bill could “lead to significant job losses” for his company. Nearly two years later, Elliott announced that the company would be cutting anywhere between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas – to China.
In March of 2010, medical device maker Medtronic warned that Obamacare taxes could result in a reduction of precisely 1,000 jobs. That plan became reality when the company cut 500 positions over the summer, with another 500 set for the end of 2013.
A short list of other companies facing future layoffs at the hands of Obamacare:
Smith & Nephew – 770 layoffs
Abbott Labs – 700 layoffs
Covidien – 595 layoffs
Kinetic Concepts – 427 layoffs
St. Jude Medical – 300 layoffs
Hill Rom – 200 layoffs
All of that in mind, there is but one question left to ask. How’s that whole economic recovery working out?