THE 10 LESSONS CORPORATIONS LEARNED DURING THE LAST RECESSION AND WHY IT IS IMPEDING JOB CREATION The recent recession has been the most brutal since the Great Depression and has caused enormous hardship for many American families, as well as immense financial problems for governments around the world. As a result, it’s hard to see the downturn that began at the end of 2007 as anything but a catastrophe. With household incomes generally lower and poverty rates significantly higher than they were 10 years ago, it’s easy to feel that everything is falling apart. But amid the wreckage, there are some success stories that are vitally important for the recovery and the future prosperity of America From Time Magazine - Jan 18, 2012 The last four years of recession has taught corporations a number of lessons. Here are the lessons: 1. Corporations have learned that they can do more with less - because of technological breakthrough and the efficiency in operations - as of now corporations have trillions of dollars stashed away that they dont intend to invest. 2. Corporations are hiring more temporary workers - temporary workers are tremendous cost savers - currently it pays for companies to save money instead of paying health costs, pension costs, and vacation pay. 3. Corporate profitability - there is a direct correlation between corporate profitability and temporary workers 4. Corporate executives - can give themselves raises because they can justify it in the profit margins and their stock prices 5. Corporations are outsourcing - outsourcing is very profitable to corporations - According to available statistics labor costs are down while productivity is up. 6. The general economic environment post recession - The mindset of the temporary worker - is that at least I got a job so let me put up with all the crap that is dished out to me. The temporary worker is easily disposable!! 7. Companies dont care about employees - somebody explain to me why a corporate executive can make 20 million dollars and a worker is making a minimum rate of $10 an honor - corporation is one of the most oppressive pyramids ever conceived by man 8. There is a direct correlation - between efficient capital allocation and stock prices - hence if companies allocate their capital efficiently it will improve profitability and stock prices 9. Capitalism is the greatest pyramid - ever created where corporate titans lord it over their workers. The corollary is the stock market which moves at the whim of speculation. 10. Corporations are able to refinance - their debt at a lower interest rate as a result of the Federal Reserve policy of quantitative easing making cheap money available By George Ansong georgeansong
Posted on: Thu, 31 Oct 2013 02:15:02 +0000
Trending Topics
Recently Viewed Topics
© 2015