April 10, 2012
THAT'S THE POINT:
For Big Companies, Life Is Good (SCOTT THURM, 4/09/12, WSJ)
Deep cost cutting during the downturn and caution during the recovery put the companies on firmer financial footing, helping them to outperform the rest of the economy and gather a greater share of the nation's income. The rebound is reflected in the stock market, with the Dow Jones Industrial Average at a four-year high."U.S. companies became leaner, meaner and hungrier," said Sung Won Sohn, a former chief economist at Wells Fargo WFC -0.92% & Co.,The performance hasn't translated into significant gains in U.S. employment.
The performance lies in not boosting US employment. Adding back the jobs everyone is demanding would only make them less efficient and productive.
Posted by Orrin Judd at April 10, 2012 6:38 AM
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