> "Record profits" are recorded because companies are afraid to expand. They expect a macroeconomic contraction. That isn't necessarily true. A company's expan

> "Record profits" are recorded because companies are afraid to expand. They expect a macroeconomic contraction. That isn't necessarily true. A company's expansion does not always require the expansion of its work force and increased profit can reflect many things: higher productivity, lower cost of goods sold, increased revenue from higher margin lines of business, accounting and tax events, etc. This said, it is important to recognize that while profit describes where a company has been, head count is in many respects a forward-looking figure based on future expectations. Who you hire and fire today often has a lot less to do with what's happening now than what a company expects will happen tomorrow, good or bad.