August 2, 2010

YOU DON'T EXACTLY NEED A CLARK MEDAL...:

The job machine grinds to a halt (Harold Meyerson, July 28, 2010, Washington Post)

The GM model typifies that of post-crash American business: massive layoffs, productivity increases, wage reductions (due in part to the weakness of unions), and reduced sales at home; increased hiring and booming sales abroad.

...to see why the model works. Obviously if massive layoffs are accompanied by productivity increases then you had too many employees. There may be some social utility to giving people money for doing useless stuff, but there is no utility in a business doing so.

Posted by Orrin Judd at August 2, 2010 4:06 PM
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