Unemployment Up Dramatically! Stocks Rise! Huh?

icon gravatar.comwww.commondreams.org/view/2009/11/07-2
sent by protect_democracy since 14 days 20 hours 14 minutes, published about 14 days 15 hours 18 minutes
there is another reason high unemployment may excite investors. Current layoffs are likely, for many workers, to be permanent. A recent report that productivity-work output per worker-was up at a 9.55 annual rate in the Third Quarter, is an indication that those companies that haven't shut down operations are making or doing more with fewer workers. That kind of thing happens in recessions, because as joblessness gets worse, those workers who still have jobs become more docile and are willing to be worked harder by management. Of course, you get more on-the-job injuries, more stress-related illness, etc. along with that kind of speed-up, but over the shorter term, it looks good on the books if you're cranking out more product with a lower payroll.
tags: economy, fascism, unemployment
4 commentscategory: Business and Economy karma: 166

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  1. #1    There is an adage in the corporate world that says that the way to counter falling stock prices is with a layoff. The market always responds positively to a layoff - it shows management willing to make hard decisions and long-term commitment to cutting operating costs as a way to improve profits.

    The markets can take a hike. Anyone who looks at cause and effects knows that higher unemployment is bad for the economy.
    written by protect_democracy since 14 days 20 hours 4 minutesprotect_democracy
  2. #2    Wall Streets success has nothing to do with the economy that the rest of us living
    written by PHred42 since 14 days 16 hours 28 minutesPHred42
  3. #3    Why is everyone surprised by this? The larger the number of unemployed workers, the reserve army of unemployed in Marxist terms, the better for the capitalist because demands for higher wages will be stifled when workers realize there are others just waiting for their jobs no matter how low the wage.

    And for the record, anyone who believes that the DOW or NASDAQ are indications of the true state of the economy needs to wake up. The Fed through the Plunge Protection Team manipulates the markets and the drug money being laundered through Wall Street skews the indexes. One other reason drugs will never be legalized and another reason why we're in Afghanistan. Read Alfred McCoy's The Politics of Heroin (circa 1972) to see just how much the war on drugs is another smoke and mirrors game.
    written by matt since 14 days 14 hours 42 minutesmatt
  4. #4    This shows the manipulators manipulating Wall St. Nice "fickle-finger-of-fate" in your face kinda thingy. You know! You saw it with Bush. http://firedoglake.com/2008/01/17/bush-economy-gives-working-people-the-finger/
    written by Sparrows since 14 days 14 hours 15 minutesSparrows
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