All is not well in the world.  The economy is in a downward spin.  It is a correction that has needed to come for a while, but those of us who played by the rules are the ones who will pay.  By this, I mean that the bigwigs at companies for a long time have made short term decisions based on what would either pay them the most or make them look best (succeeding at their job.)  When the company began to show lower earnings (and stockholders didn’t get a good dividend) the quick way to solve the problem was layoffs.  Remember that their are a lot of costs to companies besides the actual salaries for each employee.  Thus, they took a big hit on expenses and their revenues went up.  The only problem is that they lost a lot of assets (employees) to the company.  Granted there were employees that they wanted to get rid of during the mass layoffs, but they also lost a good group of employees.  Also, the employees that were left ended up doing the job of several people.  If a person leaves without a replacement either they were not needed in the first place or the work has to be done by someone.  Thus, the job performance of employees goes down.  Here is the big thing with solving the problems with layoffs.  It is a quick fix that fixes a symptom not the problem.  The problem ends up being swept under the carpet until their is no room under the carpet and someone sees all that has been swept under the carpet.  I have to say it reminds me of a child who is told to clean up their room.  What do they do to clean it up quickly?  Everything goes under the bed, what happens when a mom looks under the bed… discovers all that has been hidden under the bed.  Well, that is what has happened with all these companies.  There are CEOs who have done what needed to be done to get their bonuses without thinking long term.  They failed at it, collected their bonuses and went elsewhere.  Now, the scope of the problem has been realized, not just for a few companies, but for most of them.  But, those of us who played by the rules and stood by the companies where we were employed and got our measley raises each year are now being told that tax dollars need to be used to fix the economic problem.  And, the worse part of all of this.  The CEOs whose track records aren’t that great but they have the good ole boy network to keep themselves taken care of will get bonuses from the tax dollars in the bailouts and go on to wreck more companies.  Oh, and in regards to the good ole boy network.  Look at a company’s board of directors.  Pick anyone off the list and look at the board of directors for that person’s company.  Now, pick a name any name and look at that company’s board of directors.  Are you beginning to see the same names over and over again?  Interesting isn’t it when you realize that the same small group of people control most decisions for all companies.


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