One of the bright spots in the current economy has been the low unemployment rate and the increase in wages. It is an open secret that corporations likes to have high unemployment because it makes workers powerless and thus can be forced to accept lower wages and less likely to ask for better working conditions or (horror of horrors) form unions, since they can be scared by the prospect of getting fired. But businesses rarely say that out loud because it looks bad to say that you want to see more people out of work. So they usually find ways of directly avoiding doing so and do not really need to since business owners are aware of this open secret. But a recent report from Bank of America actually said that it hopes for higher unemployment in the future.
A BANK OF AMERICA executive stated that “we hope” working Americans will lose leverage in the labor market in a recent private memo obtained by The Intercept. Making predictions for clients about the U.S. economy over the next several years, the memo also noted that changes in the percentage of Americans seeking jobs “should help push up the unemployment rate.”
The memo, a “Mid-year review” from June 17, was written by Ethan Harris, the head of global economics research for the corporation’s investment banking arm, Bank of America Securities. Its specific aspiration: “By the end of next year, we hope the ratio of job openings to unemployed is down to the more normal highs of the last business cycle.”
