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The headline posted here is not the headline of the article, nor is it supported by the article. The article makes the point that corporate profits are going up
by Umalu 16y ago
The headline posted here is not the headline of the article, nor is it supported by the article. The article makes the point that corporate profits are going up while unemployment is staying high. The article does not say that profits are up because unemployment is high. In fact, I expect corporate profits would be even higher if unemployment were lower, as more paid workers means the economy expands even further, creating more demand for products and services and higher profits.
- adovenmuehle 16y agoI agree with you, although I wonder to what extent "cutting the fat" helps corporations during recessions, when layoffs can easily be blamed on a down economy.
- gte910h 16y agoThere is definitely a point at which low unemployment lowers corporate profit (as staff turnover gets pretty high when you get full employment) and salaries greatly rise. I'm guessing we're far from a point where that happens though.