Mergers are keeping unemployment high

In the Nov. 16 Business section, the Daily Herald had a front-page story titled “Companies crank up deal machine, put cash to work.” Comments from the article included that some of the best-known names in corporate America are finally putting the piles of cash they've been sitting on to use and that the deals are happening, in part, because companies have amassed a record $1.84 trillion in cash as of June 30, according to the Federal Reserve.

That was 18 percent more than a year earlier. Rather than putting the cash to work in investing in people, these companies are using their excessive cash and equity to buy other companies. Republicans frequently use the dramatic term “job killing.”

Mergers and acquisitions continue to be one of the top methods in killing jobs but, unfortunately, far too many people can't see this. People mindlessly continue to blame the government as if the government were a cause and effect of this job killing.

After listening to three decades of Republican comments that “the government is the problem,” why would people suddenly look to the government for solutions? People need to start creating their own jobs rather than looking to government or those in the private sector to create jobs for them. But people should read this article since it is one of many excellent descriptions as to why the unemployment (and underemployment) rate continues to be high and will most likely remain high.

As companies merge and consolidate, and increase efficiencies in their operations, there is a reduced need for employees. Mergers and acquisitions have been, and will continue to be, job killers.

Kevin Martin

Schaumburg