That Healthy Economy

From the business section of today's New York Times, a report on Silicon Valley that may be a sign of where we are going: venture capital investments are up, profits are healthy, R&D funding is booming, and the job situation still sucks.

Why? Productivity improvements. Companies are doing more with less. That means, no, there are a not a bunch of new jobs to go with all this good news, and life in the San Jose area continues to get tougher for the middle class.

(The article notes offshoring, everyone's favorite demon since it started affecting educated technology workers; we weren't too upset when it was just manufacturing jobs, so now a modest outsourcing trend that affects higher-income people get a lot more attention than a much larger trend at the lower end of the income spectrum.)

It's a sobering report for those who are convinced that keeping businesses healthy means good things for everyone.

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