Post by Micams on Mar 29, 2009 19:41:38 GMT -5
This whole thing with the economy is really pissing me off.
I can't fully understand how this whole thing happened. One company lays off workers because profits are down. This in turn causes another company to lay off workers due to the fact that the workers from the first company are no longer able to buy the second company's product, thus causing profits to fall for the second company. This then causes a whole domino effect with several companies.
Now these companies are laying off, for the most part, the lower paid production workers, not management. If the first company paid the management less money they could have more profit. Or they could have less management thus having more profit. Once one company starts laying off workers, other companies have to do the same due to lower profit margins from lower sales.
These companies feel that they have to pay the high management huge bonuses for doing their job correctly. This burns me, because the high management didn't do a damn thing. They sat on their asses and told the lower management and production workers what to do. They lower workers are the people who make the high management look good.
One of the biggest factors with this whole recession, is the high oil prices. I don't see why energy "products" are traded on the commodities market. The energy companies should be the only entities to be traded on the stock market, not the product. Greedy bastards are causing this whole mess, because they think it's smart to "buy, buy, buy" oil and other energy products. Wall Street should be done away with.
Now I know some economics major will come in here and argue that I'm wrong about my views. The thing is, economics majors are being taught the same "old school" economics that got us in our current mess.
I can't fully understand how this whole thing happened. One company lays off workers because profits are down. This in turn causes another company to lay off workers due to the fact that the workers from the first company are no longer able to buy the second company's product, thus causing profits to fall for the second company. This then causes a whole domino effect with several companies.
Now these companies are laying off, for the most part, the lower paid production workers, not management. If the first company paid the management less money they could have more profit. Or they could have less management thus having more profit. Once one company starts laying off workers, other companies have to do the same due to lower profit margins from lower sales.
These companies feel that they have to pay the high management huge bonuses for doing their job correctly. This burns me, because the high management didn't do a damn thing. They sat on their asses and told the lower management and production workers what to do. They lower workers are the people who make the high management look good.
One of the biggest factors with this whole recession, is the high oil prices. I don't see why energy "products" are traded on the commodities market. The energy companies should be the only entities to be traded on the stock market, not the product. Greedy bastards are causing this whole mess, because they think it's smart to "buy, buy, buy" oil and other energy products. Wall Street should be done away with.
Now I know some economics major will come in here and argue that I'm wrong about my views. The thing is, economics majors are being taught the same "old school" economics that got us in our current mess.