Corporations across America have recently been reporting near-record high profits. If that is so, why are people continually losing jobs? It's simple really. These high profit margins have not come from increased sales, but from increased cuts. That's right. Companies are making a killing from simply decreasing they're expenses, many of which are job and salary cuts. Makes sense, right? So, even though we still have the highest unemployment rates in recent history, and people are still losing jobs left and right, companies are getting richer.
Is this good? Is this bad? You be the judge. If companies retained employee's then the unemployment wouldn't be as bad, and the recession would come to a quicker close. However, if they keep these jobs they would not make as much money which could lead to more job losses...possibly...or the wealthy in charge of those corporations will continue to get wealthier while the middle class continues to dwindle.
I'm not an economist, but it's nice to know what's really happening in our economy when many "experts" are reporting that the recession is gone and companies are making record profits. Yes people, the recession is still here, and will likely be around for a while.
If you'd like to read the article I based this on follow the link :)
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