This seems to be a good example of a Catch-22, "A contradictory or self-defeating course of action." That's it, that's exactly what these corporations have succeeded in doing after having embraced the Reagan-inspired war on labor. No, we won't see all of these corporations collapsing in the near future but this is an insidious process of debilitation and, as it generates further momentum, many, many of these corporations are going to lapse into bankruptcy as their customer bases dry up.
It is inevitable, it is unavoidable. As many of the most respected economists point out, this recession is not the usual cyclical model where, once we go through the normal pain and suffering, and the recession runs its course, everything will just go back to where it was. No, that is not going to happen, it cannot happen this time. Those many millions of jobs that were outsourced to overseas nations are gone forever; there is no way that they are going to come back.
That very important part of the customer-driven economy is passà © and there is nothing in the foreseeable future that is ready to take its place. The old U.S. economy is a thing of the past and we all are going to have to adjust to a wholly different kind of an economy in which American lifestyles will no longer be the same.
When this situation peaks, probably over the next ten years or so, corporations are going to have to look at an entirely new business plan that will not be very palatable, but there will be few if any options. This new plan will call for a complete reversal of the poisonous outsourcing plan of the past, something that corporations will find to be very difficult to accept.
Corporations are going to have to create new products and new industries to provide American workers with the jobs and the income to, once again, contribute to this consumer-driven economy. If they fail to do this, they will find that, as the demand for their products continues to diminish, they will have no choice but to lay off more workers to further reduce labor costs. Then as the population of willing and able buyers continues to decline, this vicious circle will devastate the corporate sector. These corporations will either have to accept reality and change, or die.
If these giant corporations deliberately planned and carried out a strategy that destroyed their workers' jobs and their livelihoods in the quest for greater and greater profits and all evidence clearly indicates that they did - then they will have, unwittingly, planted the seeds of their own destruction.
Michael Payne
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