Thursday, April 19, 2012

Why Is This a Conundrum?

A conundrum is something that is surprising and unusual and difficult to explain. Sometimes a conundrum is described as a "riddle." Today's conundrum, according to the media, is the "jobless recovery." Really?

Is it truly difficult to find the reasons why employers have scant interest in adding to their work force? The only folks that find that this is a "conundrum" are folks that are not employers. American employers know perfectly well why hiring new employees is of little interest and could pose a major threat to their company's financial security.

The future of the US is to use labor from outside the country. Why? Is it because wages are low? If that were the case the US would have always "imported" it's labor through outsourcing. Why is "outsourcing" a modern phenomenon? Is this really a conundrum, as the media is fond of asserting? Or, is it simply the logical and predictable outcome of the dramatically increased labor costs imposed by various levels of government on employers that have the temerity to have a work force?

A machine can't sue you. An employee in China or India can't sue you if they don't work for you, but work instead for your subcontractor. You don't have to provide various benefits to an employee in Vietnam or Poland who is providing labor services to a company that provides you with a product. So, why should American companies have any "local" employees at all. That is probably the real "conundrum."

It is not a surprise that we have a jobless recovery. The real surprise would be if American employers got enthusiastic about hiring American workers. Based upon current government policies and existing law, that's not likely to happen.