Why is labor the first place most of these corporations look to cut when they need to save money?
... They cut more jobs, but don't cut CEOs' salaries. Really? Why does the government continue dumping money into these corporations so that they can lay off more people? Where's all the Republican rhetoric about how the wealthy create jobs?
Asked By: Coriolanus - 1/27/2009
Best Answer - Chosen by Asker
Because they do not know how to come up with creative solutions to keep their business afloat.
Answered By: teeewalk - 1/27/2009
Additional Answers (12)
In good times and in bad times the capitalists ALWAYS blames the working class. The true enigma of our times is that a party exists primarily to advance the interests of 10% of the population but enjoys a 50% block...strange as hell.
Answered By: Marks_perspective - 1/27/2009
They are poorly trained as managers. TARP should have come with a condition that eradicates the entire management structure of all of the companies that receive funds from it.
Answered By: Nanobama - 1/27/2009
Personnel is usually a major expense for corporations. Also, its not that easy to liquidate assets like buildings and equipment particularly in an economic downturn.
Answered By: Hater Police - 1/27/2009
The idea of the the wealthy creating jobs is a myth. Demand creates jobs, cash in the hands of the consumer creates demand.
Answered By: Metal Mike - 1/27/2009
Because given a choice between the people who actually do the work and the luxury jet they'll keep the jet. I'm a conservative so don't pretend this issue has anything to do with political parties. I thought the bailouts were terrible for this reason.
Answered By: Osama Obama Yomama - 1/27/2009
The Republicans set the bailout up so that the guys who messed things up could keep their perks and only the regular workers would get laid off.
Answered By: Joshua H - 1/27/2009
its because the CEO's of the companies think they are worth that much money when they really arent and usually dont do sh*t for the company except ring it dry.
Answered By: Collin S - 1/27/2009
Have you ever taken any economics classes? Variable costs are the first to go and one of the largest costs is always labor. If you need 200 people to make 200 items a day and your sales drop to 50 items a day wouldn't the first thing you cut be 150 people? The CEO is still working very hard, actually working much... More
Answered By: yablocksthetruth - 1/27/2009
It takes a lot of money to keep workers employ. There are benefits packages which the company pays like health insurance, 401k's, life insurance, taxes, etc. etc. To improve profits or cut costs they cut workers. Because they are greedy.
Answered By: scandguard - 1/27/2009
In any enterprise, the two basic costs are labor and capital. Capital includes buildings, machinery and other purchases of things supposed to last a long time. It is not easy to dispose of a capital asset, so these are relatively fixed costs. Labor costs are not as easy to reduce as they would be without laws... More
Answered By: Simian - 1/27/2009
for most industries, labor is the most expensive cost. since we have a capitalist system of economics labor does not have a voice in the company they work for. capitalism is dictatorial, socialism is democratic.
Answered By: just curious - 1/27/2009
Actually, usually corporations do two things. They freeze wages and hiring first then if needed they cut jobs. Usually when they cut jobs, they select the lowest performers to cut who were usually the last hired also. This keeps the good workers employed while the less good workers are where they have been before... More
Answered By: andy - 1/27/2009
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