If the economy is in the drain why did the top companies have such high profitsts

^Sad but true.

I had to learn how to write layoff press releases in business school and analyze cases about management during layoffs. That's why my heart broke when my man's boss was showing the signs he was going to let him go no matter how much "extra" work he did. If you are getting new management and if that new boss isn't trying to do team building or give you the impression he is involving you, then you are going to be phased out.

HRE wrote:

Getting rid of workers will make a company more profitable if the remaining workers are scared enough of losing their jobs that they do "extra" work for no additional compensation.

I disagree. The fear of getting fired will only make employees work hard enough to not get fired.

Management tends to raise the level of work because they have less employees. So everyone has to do "extra" work to keep their job.

Many of these major companies stand to take a windfall from the recent gains by the capital goods industry as a result of governmnent stimulus. Couple this with 1.the increased public support/excuse for restructuring fixed cost labor contracts and 2.the fact that real inflation (in this case inflation at this highest tier of the economy) is actually very high, but has yet to really impact consumer prices. The backbone of the American economy (small/local business) has yet to fully feel the negative effect that the events of the last 10 years have had.--> Interest rates have yet to go up because the government is currently sacrificing any hope of fiscal repair in order to keep them down. Once the rates come back up to match the insane inflationary pressures we will see a depression few could have imagined outside of Apocalyptic genre BS. It is very hard to say what will happen in this time. But, if you are a well-minded hardworking individual it would be in the absolute best interest of you and your family to gain an understanding of the international currency markets and attempt to convert your savings into something worthwhile as many countries continue to escalate their campaigns to reduce correlation/dependence to the dollar. No need to panic, but start to understand that America has been hijacked and is intended to be made example of.

The backbone of the American economy (small/local business) has yet to fully feel the negative effect that the events of the last 10 years have had.--> Interest rates have yet to go up because the government is currently sacrificing any hope of fiscal repair in order to keep them down. Once the rates come back up to match the insane inflationary pressures we will see a depression few could have imagined outside of Apocalyptic genre BS.

I am in total agreement. We have not seen anything yet. Save every penny you have and don't rely on the government or social security. We are in for a rough ride.

blahhhhhhhh wrote:

HRE wrote:

Getting rid of workers will make a company more profitable if the remaining workers are scared enough of losing their jobs that they do "extra" work for no additional compensation.

I disagree. The fear of getting fired will only make employees work hard enough to not get fired.

Reduce a 50 person work force to 40, make sure the remaining 40 know that they need to do the work that 50 used to do for little or no added compensation or they may be next to go, and you're golden. working hard enough, or longer enough, to avoid getting fired will usually do the trick.

You're right about letting the workforce know that they will need to do extra work without extra compensation. It's easier said than done because people will hate management if they approach it that way. "Work more or you're fired" doesn't make people excited to work as a team and do better.