I just read recently that eBay and American Express are planning some layoffs, even after some healthy profits. So now, it’s no longer about laying off people to get back into profits; it’s about laying off people so that executives can direct more money into theirs and shareholder’s pockets.
To quote from the article:
“Yahoo Finance Senior Columnist Mike Santoli says the layoffs are a result of shareholder pressure to maintain growth and revenue. “American Express and eBay are in a situation where they’re basically not fast growth businesses but rather ones that investors are demanding keep the profit margin up.” “
There, he said it, shareholders want more.
Here’s the link to that article:http://finance.yahoo.com/news/big-profits–big-layoffs–amex–ebay-to-cut-jobs-154221346.html</>
Fortunately, people are starting to recognize that our current form of capitalism needs to change. Obama in his recent State of the Union address talks about increasing taxes on the wealthiest to help fund activities that will address our current inequality. Thomas Edsall of New York Times in his January 20, 2015 article “Can Capitalists Save Capitalism?” talks about “inclusive capitalism”.
This article has so much information that I’m supplying the link here:
As noted in the article, people are starting to realize that as we hollow out the middle class and push everybody into the poor stratum, there will be less and less people able to buy and sustain the growth and productivity companies are seeking. Finally, the light turns on! With the constant layoffs and the new automation threats, there will be fewer and fewer consumers. All of the money will be concentrated in the hands of the 1% and then the battle amongst them will begin. Hence the picture of musical chairs. Will the corporate chieftains and the shareholders finally wise up? It remains to be seen. All I know is that most of them are not worth the 400 times the salary of the average worker.