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Last year’s economy should have won the Oscar for best picture. Growth in gross domestic product was 4.1 percent; profits soared; exports flourished; and inflation stayed around 3 percent for the third year. So why did so many Americans give the picture a lousy B rating The answer is jobs. The macroeconomic situation was good, but the microeconomic numbers were not. Yes, 3 million new jobs were there, but not enough of them were permanent, good jobs paying enough to support a family. Job insecurity was rampant. Even as they announced higher sales and profits, corporations acted as if they were in a tailspin, cutting 516,069 jobs in 1994 alone, almost as many as in the recession year of 1991.
Yes, unemployment went down. But over 1 million workers were so discouraged they left the labor force. More than 6 million who wanted full-time work were only partially employed; and another large group was either ove
A. White-collar workers are also fired in large numbers.
B. Last year’s U. S. economical growth was very impressive.
C. Companies with rising productivity used to raise wages to keep labor.
D. Self-employment was a way out for the American economy.