Publicly traded corporations reported the largest profits in history in the last quarter, but not the largest sales. How did they manage this trick? Mostly via cost-cutting, especially cuts in worker wages and benefits. So its good times for investors. For employees and the economy as a whole, maybe not so good...
Three Corporate
Cheers For Recessions
In B-schools you learn, when recessions appear,
They bode better times, they're nothing to fear;
They give you the cover, your payrolls to trim,
Worker benefit pools, to cut back and slim.
Sure, income may fall some, if shoppers don't buy,
Make sales projections a less higher fly;
But the trade-off when income from sales is lost,
Is more than offset by less steep labor cost.
Some pols and economists may quibble and whine,
When you don't with more profits more hiring align;
But you need pay no heed to these noisy detractors,
As long as Wall Street deems you its benefactors.
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