“The foreman says ‘These jobs are goin’ boys …
And they ain’t comin’ back…’” “My Hometown” by Bruce Springsteen
There’s a poignant campaign speech in the political drama “Primary Colors,” one of my favorite movies. John Travolta, playing a Southern governor running for president, is addressing a group of downsized workers in a small
“Primary Colors” was released in 1998, but the message is even clearer today: the job market in which our parents labored has disappeared forever.
Last week we examined how globalization and automation continue to eliminate jobs. Now, consider Facebook’s recent offer to purchase WhatsApp for $19 billion. WhatsApp, a company that allows free messaging, is only five years old and employs 55 people. Of these 55 employees, 32 are engineers, according to Robert McMillan of Wired.com. WhatsApp is the primary texting device used in countries like
Some historical economic context is helpful. Henry Sherwin and Edwin Williams ventured into the paint business in 1866, one year after Lee surrendered to Grant at
Tyson Foods employs 115,000 people. Hertz has some 41,000 workers. Dr. Pepper employs 19,000 across
“The companies (previously listed) are storied brands, many of which have slogged along for years and years, inching up their market caps basis points at a time,” says Calao. “In a blink, they’ve all been matched or surpassed, in terms of market value, by a no-name startup in
WhatsApp may be the face of the future of
Whose cutting edge business concept will debut on “Shark Tank” and make them the next billionaire? This type of business model may be exceptionally profitable for a few successful entrepreneurs, but bad for those in the labor market seeking long term employment and security. The model doesn’t promise to sustain a viable middle class that can drive consumer spending, power GDP and grow the economy.
Margaret R. McDowell, ChFC, AIF, a syndicated economic columnist, chartered financial consultant and accredited investment fiduciary, is the founder of Arbor Wealth Management, LLC, (850-608-6121 — www.arborwealth.net), a “fee-only” and fiduciary registered investment advisory firm located near Sandestin. This column should not be considered personalized investment advice and provides no assurance that any specific strategy or investment will be suitable or profitable for an investor.