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I work for GM (for now). 15% layoffs were announced before Christmas... No one knows when the ax will drop. Rumor is Monday or Tuesday. Moral is low and the of

by fma 8y ago

I work for GM (for now). 15% layoffs were announced before Christmas... No one knows when the ax will drop. Rumor is Monday or Tuesday. Moral is low and the office has been pretty damn quiet. Meanwhile we just raises earnings forecast today...

deleted 8y ago
[deleted]
pbhjpbhj 8y ago
Which is kinda just how capitalism "works". In certain circumstances, once the means of production are created [most of] the workers are no longer needed, but the means being privately held (by a narrow group of owners) means they alone can benefit going forward. You can make a feast together and share it; or you can make a feast together, kick out most of the helpers and gorge yourself. Capitalism says the second option is better because you get to have more.
- roenxi 8y ago
  Strictly speaking, Capitalism says that the Capitalists get to choose which option they go with. In a system with healthy incentives, we might expect Option 1 to be the sensible capitalist equilibrium, because capital needs to be maintained and the builders/maintainers become the same people. Don't forget that, in theory, the workers can become capitalists themselves if they aren't getting a good share of the benefits. In my view usually when they don't it is because of government interference (eg, the pre-Uber situation in taxis, or how regulation tends to entrench existing players).
  - ambicapter 8y ago
    You don't "become" capitalist, a capitalist has capital, and if you don't have any capital, you're not a capitalist.
    - CryptoPunk 8y ago
      Anyone saving/investing a portion of their income is becoming a capitalist.
    - FakeComments 8y ago
      I disagree. As an example, someone who switches from working as a landscaper to running a landscaping business has switched from a worker role to a capitalist role — even though they likely spent less money doing so than a software engineer worker owns. Being a “capitalist” is defined by capitalizing ventures, not the mere volume of capital. I would argue that the reason society has become so disequitable is that we’ve made it difficult to transition between worker and small capitalist — that is to say, that we’ve undermined small and lifestyle businesses.
- CryptoPunk 8y ago
  >>but the means being privately held (by a narrow group of owners) means they alone can benefit going forward. No, capital expanding has social benefits in reducing consumer prices, which increases purchasing power.
tyfon 8y ago
The forecast increase is probably a direct result of the layoff and they needed it to "meet the quarter". I have the quarterly cycle. I find it extremely bad for both the society and companies when nobody takes the long term view.
- fma 8y ago
  No... It was part of the 2018 announcement. 2018 was better than expected so they revised 2019 forecast. "Early Friday, GM said 2018 EPS will exceed previous guidance of $5.80-$6.20. It also expects to surpass an earlier view of adjusted automotive free cash flow of $4 billion."

by fma 8y ago

deleted 8y ago

[deleted]

pbhjpbhj 8y ago

Which is kinda just how capitalism "works". In certain circumstances, once the means of production are created [most of] the workers are no longer needed, but the means being privately held (by a narrow group of owners) means they alone can benefit going forward. You can make a feast together and share it; or you can make a feast together, kick out most of the helpers and gorge yourself. Capitalism says the second option is better because you get to have more.

roenxi 8y ago
Strictly speaking, Capitalism says that the Capitalists get to choose which option they go with. In a system with healthy incentives, we might expect Option 1 to be the sensible capitalist equilibrium, because capital needs to be maintained and the builders/maintainers become the same people. Don't forget that, in theory, the workers can become capitalists themselves if they aren't getting a good share of the benefits. In my view usually when they don't it is because of government interference (eg, the pre-Uber situation in taxis, or how regulation tends to entrench existing players).
- ambicapter 8y ago
  You don't "become" capitalist, a capitalist has capital, and if you don't have any capital, you're not a capitalist.
  - CryptoPunk 8y ago
    Anyone saving/investing a portion of their income is becoming a capitalist.
  - FakeComments 8y ago
    I disagree. As an example, someone who switches from working as a landscaper to running a landscaping business has switched from a worker role to a capitalist role — even though they likely spent less money doing so than a software engineer worker owns. Being a “capitalist” is defined by capitalizing ventures, not the mere volume of capital. I would argue that the reason society has become so disequitable is that we’ve made it difficult to transition between worker and small capitalist — that is to say, that we’ve undermined small and lifestyle businesses.
CryptoPunk 8y ago
>>but the means being privately held (by a narrow group of owners) means they alone can benefit going forward. No, capital expanding has social benefits in reducing consumer prices, which increases purchasing power.

tyfon 8y ago

The forecast increase is probably a direct result of the layoff and they needed it to "meet the quarter". I have the quarterly cycle. I find it extremely bad for both the society and companies when nobody takes the long term view.

fma 8y ago
No... It was part of the 2018 announcement. 2018 was better than expected so they revised 2019 forecast. "Early Friday, GM said 2018 EPS will exceed previous guidance of $5.80-$6.20. It also expects to surpass an earlier view of adjusted automotive free cash flow of $4 billion."