RE: Short-sightedness and Corporate Anorexia & Bulimia (WAS once VS when and low pay)

["Andrew Dugas" <dugas -at- intalio -dot- com>]

What is often overlooked in such job-cutting moves is the cumulative effect
on the economy as a whole. In the greater scheme of things, such companies
may be shooting themselves in the collective foot.

If Company X cuts some jobs, moves overseas, okay, fair enough, they just
want to improve the bottom line for their shareholders. But taken together,
the cumulative cuts from Companies A, B, C... and so on, is actually
removing consumers from the market. That's X number of people who no longer
have the money to spend on gawidgets at the mall, and so less revenue for
the companies. At some point, the revenue lost will exceed the revenue saved
by the costcutting.

Henry Ford saw every employee as a potential customer and planned his
products and their manufacture accordingly. That may seem like simplified
thinking today and on a small scale it may have little validity. But taken
cumulatively...

Who buys all these products anyway? We do and if we're out of work...



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