"I'm sorry, but job losses are just the reality": RBA boss - Polidicks

[img]http://resources2.news.com.au/images/2011/03/05/1226016/387914-glen-stevens.jpg[/img] Reserve Bank Governor Glenn Stevens. Picture: Kym Smith Source: [url]http://www.news.com.au/business/business-smarts/reserve-bank-boss-warns-of-further-job-cuts/story-e6frfm9r-1226123687766[/url] [release] RBA boss says job cuts "reality" Says restructuring won't help Money: Shoppers going for apps RESERVE Bank boss Glenn Stevens has issued a chilling warning to workers: job losses are not only a sign of the times, but a signal of worse still to come. Reeling from a massive unemployment carve up in the manufacturing industry, the RBA governor gave cold comfort to families whose loved ones are now out of work, declaring: "I'm sorry, but that is just the reality." BlueScope Steel devastated more than 1000 workers when it announced a restructure after posting losses of more than $1 billion. The news followed similar announcements by Qantas, OneSteel and Westpac, and brought the official number of job losses for the month to 9000, although the true figure is likely to be higher. Mr Stevens warned the global economy had significantly worsened in recent months and that restructuring in various sectors couldn't be helped. "Some parts of the economy will shrink while others grow. I wish I could say we had a way of avoiding that; I don't think we do . . . We don't have an instrument that can prevent these shifts in the structure of the economy from occurring. I'm sorry but that is just the reality," he said. Economists claim job losses already announced are just the tip of the iceberg and that the figure could jump drastically - reaching 100,000 by Christmas. Labor MP for Throsby Stephen Jones, whose constituents are bearing the brunt of the cuts at BlueScope, claimed Australia was experiencing a "hollowing out of manufacturing at a pace we haven't seen before" before asking Mr Stevens what consideration the RBA was giving to regional economies and industries, such as manufacturing. AMP Capital chief economist Shane Oliver predicts the unemployment rate will rise from 5.1 per cent to 5.5 per cent - equal to 80,000 jobs being shed - by the end of the year. He warned that aside from manufacturing, construction firms not benefiting from the mining boom, such as Leighton Holdings and Stockland, are likely to cut workers. Retailers are also expected to shed staff. Electronics have been hit hard with Dick Smith's owner Woolworths reporting electronics sales were down almost 30 per cent across Australia and New Zealand. Harvey Norman has already announced the closure of seven stores. Food and drink processors such as Coca-Cola Amatil are closing factories to slash costs as the strong Aussie dollar means certain product lines are not competitive in many export markets. Others are expected to follow suit, causing the disappearance of further jobs. Steve Keen, Professor of Economics at the University of Western Sydney, said consumers paying down debts and saving were causing retailers and other discretionary businesses to "suffer terribly". "They are already shedding jobs, and then you have the high dollar, which is being held up in part by the possibility that rates in Australia still have further to rise," he said. "That is crushing manufacturers and will cause more jobs to be lost over the coming months."[/release]

Here's how I think of it. It's only a reality if you make it a reality.

According to the quoted part in the original post, he actually said jobs in one section of the economy would grow, other sections would lose jobs. He said THAT process is the reality. That is a bit different that what the subject line makes it sound like- no more jobs at all.

[QUOTE=cecilbdemodded;31971805]According to the quoted part in the original post, he actually said jobs in one section of the economy would grow, other sections would lose jobs. He said THAT process is the reality. That is a bit different that what the subject line makes it sound like- no more jobs at all.[/QUOTE] I use the same heading the source uses [img]http://i.imgur.com/FyUzJ.png[/img] [url]http://www.news.com.au/[/url]

[QUOTE=wingless;31971678]Here's how I think of it. It's only a reality if you make it a reality.[/QUOTE] You'd rather the company kept all the people on and posted losses year after year driving it into the ground then?

[QUOTE=Callius;31971843]You'd rather the company kept all the people on and posted losses year after year driving it into the ground then?[/QUOTE] To be fair. Year after year these companies get hand outs while making record profits.

[QUOTE=Callius;31971843]You'd rather the company kept all the people on and posted losses year after year driving it into the ground then?[/QUOTE] You seem to be ignorant to the fact that you can cut other things than jobs.

[QUOTE=wingless;31971908]You seem to be ignorant to the fact that you can cut other things than jobs.[/QUOTE] Like?

[QUOTE=carcarcargo;31971994]Like?[/QUOTE] I remember reading about a story in which some Japanese CEO cut his salary in half so he could keep the people working at his company employed.

[QUOTE=Frek;31972074]I remember reading about a story in which some Japanese CEO cut his salary in half so he could keep the people working at his company employed.[/QUOTE] Actually, he is the CEO of the biggest airline company in Japan, he cut his salary so much that he makes as much as the average worker in said company.

[QUOTE=wingless;31971678]Here's how I think of it. It's only a reality if you make it a reality.[/QUOTE] Yeah, they should keep their employees on board! Sure, they'll lose net revenue because they'll have to pay them with less money, potentially meaning they'll get behind in the competition, lose even more money and have to close, firing everyone all together! But as long as you don't fire them now, you're doing a good thing.

[QUOTE=Haxxer;31972107]Actually, he is the CEO of the biggest airline company in Japan, he cut his salary so much that he makes as much as the average worker in said company.[/QUOTE] Now [I]that[/I] is how you CEO.

Harsh but true, that's just how it is. [B]Edited:[/B] [QUOTE=wingless;31971678]Here's how I think of it. It's only a reality if you make it a reality.[/QUOTE]Is that why you're in love with people you'll never meet?

I thought the reason sales were down was because of unemployment. I mean, economic crashes in general are a lot more sophisticated than that but won't firing more workers just add to the number of people unable to buy product?

[QUOTE=1STrandomman;31972760]I thought the reason sales were down was because of unemployment. I mean, economic crashes in general are a lot more sophisticated than that but won't firing more workers just add to the number of people unable to buy product?[/QUOTE] Companys can't magically sustain their own market you know. [editline]27th August 2011[/editline] [QUOTE=wingless;31971908]You seem to be ignorant to the fact that you can cut other things than jobs.[/QUOTE] Ok so we'll just employ all these people who we don't need because the demand for our product has dropped so they don't fired, they can just stand around all day.

I think jobs would be created if the government would stop taxing income. That would put a few thousand dollars back into the pockets of Americans. If Americans have more money, they'll feel secure enough to spend more. If they spend more, businesses will have to hire more employees to meet the demand.

I think this guy is pretty clear on what the problem is- people are not skilled/educated/qualified in the new jobs. I believe this is where the governments of the world should have their focus, getting people with outdated skills, or no skills, up to speed on the new jobs. For example, if someone was making a decent living working in the automobile plant, but the plant is now closed, it makes no sense to throw financial aid to them and hope it works out for them. It would be more effective to immediately get these people into some training or educational facility so that during their down time they are getting requalified. Of course this would take effort on the part of government and private business to coordinate. It's easier though to just give someone a check and say "Here's some money, don't say we didn't help you." and leave them to their fate.

[QUOTE=cqbcat;31973341]I think jobs would be created if the government would stop taxing income. That would put a few thousand dollars back into the pockets of Americans. If Americans have more money, they'll feel secure enough to spend more. If they spend more, businesses will have to hire more employees to meet the demand.[/QUOTE] Getting rid of income tax isn't going to solve the economic situation as a whole, if anything we need to increase it. During the mid 40's to late 50's, the greatest economic expansion in the history of the United States, our income taxes were between 20% and 94% (depending on your income), today they're between 10% and 35%. I don't know what I'm talking about I'm no economist, I don't know the inner workings of companies, I just know that companies are going to go to Washington pleading for tax breaks as a way to "help the middle class get back into the workforce" but they're just going to pocket the extra cash and make those who are left work twice as hard for half the pay because the workers wont quit, because there's 300 people lining up for that one mans job, so he goes on and thanks his overlords just for the opportunity to grovel. I'm just rambling now, nothing to see move along.

"4 billion profit this year, 1 billion less then last year. Better fire everyone!!!!!!"

[QUOTE][/QUOTE][QUOTE=Stany01;31974841]"4 billion profit this year, 1 billion less then last year. Better fire everyone!!!!!!"[/QUOTE] What? Yeah, if you lose 1 billion dollars then yes, firing people makes sense because 1 billion in loss of profits is a fuck ton of money

[QUOTE=Clementine;31975107]What? Yeah, if you lose 1 billion dollars then yes, firing people makes sense because 1 billion in loss of profits is a fuck ton of money[/QUOTE] You still have $4,000,000,000 worth of pure [B]profit[/B] which means you shouldn't be firing a soul, you'd just do more damage in the long run.

[QUOTE=ewitwins;31975210]You still have $4,000,000,000 worth of pure [B]profit[/B] which means you shouldn't be firing a soul, you'd just do more damage in the long run.[/QUOTE] They somehow lost 1/5 of their profits, that's pretty bad.

"I'm sorry, but the reality of the situation is that we don't feel like supporting the economy of our own country by offering people stable income when we can just get 30 chinese teenagers to do the work for a small fraction of what we're paying you individually. I do hope you understand..."

It sure is easy for a big fucking boss man who never had to worry about money in his life to tell people that they are firing people now, so they can continue firing people later. Just looking at the SOB picture tells me all i need to know. He probably doesn't even wipe his own ass.

This is quite obvious. More and more work is getting taken by automatization and robots, because these will always be cheaper. Humanity has to deal with oh so horrible fact that soon enough, there will simply be little work left for humans. It's sad. Humanity is slowly freeing from the need of all kinds of labor and work, and instead of people being happier and having more free time and resources, they suffer even more.

[QUOTE=wingless;31971908]You seem to be ignorant to the fact that you can cut other things than jobs.[/QUOTE] More often than not, workers are retrenched due to a lack of demand for a product (that they work for a business who produces it). With lack of demand, there is no need to produce so much, so that is why retrenchment happens, as it is the most logical solution to scaling back costs of operations and remaining efficient. [editline]28th August 2011[/editline] [QUOTE=DiBBs27;31975589]It sure is easy for a big fucking boss man who never had to worry about money in his life to tell people that they are firing people now, so they can continue firing people later. Just looking at the SOB picture tells me all i need to know. He probably doesn't even wipe his own ass.[/QUOTE] Business management choices, my friend. Sure, all the workers are just statistics to him, but some things are necessary to ensure that the business continues to run successfully, and still be a source of employment in the present and future. [editline]28th August 2011[/editline] [QUOTE=BLOODGA$M;31975322]"I'm sorry, but the reality of the situation is that we don't feel like supporting the economy of our own country by offering people stable income when we can just get 30 chinese teenagers to do the work for a small fraction of what we're paying you individually. I do hope you understand..."[/QUOTE] They are scaling operations to demand, how does that imply that the business wants to outsource? Anyways, the unemployment is increasing in Australia due to the rippling effect of the global economy. More than 75% SME (small-medium enterprises) export their products, and a significant portion of large businesses export as well. Strong Aussie dollar means it isn't very profitable to export, as well as the fact that international markets are also rather weak. Touching taxes in any way wont actually help the economic situation as it stands.

[QUOTE=Awesomecaek;31976014]This is quite obvious. More and more work is getting taken by automatization and robots, because these will always be cheaper. Humanity has to deal with oh so horrible fact that soon enough, there will simply be little work left for humans. It's sad. Humanity is slowly freeing from the need of all kinds of labor and work, and instead of people being happier and having more free time and resources, they suffer even more.[/QUOTE] But who will maintain the robots

[QUOTE=Cuntsman;31976460]But who will maintain the robots[/QUOTE] The robots will slowly begin to maintain themselves, I don't get what's so alien on that completely logical concept.

[QUOTE=Awesomecaek;31976478]The robots will slowly begin to maintain themselves, I don't get what's so alien on that completely logical concept.[/QUOTE] Wonder what happens when almost no job requires a human.

[QUOTE=fskman;31976928]Wonder what happens when almost no job requires a human.[/QUOTE] Capitalism will stop working. Not all at once. As you can see, it's already starting to scrape.