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Profits soar amid mass layoffs

TheDemSocialist

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As dozens of major corporations announced increased second-quarter profits this week, the US working class was hit with a disastrous new round of mass layoffs.
On Monday, book seller Borders announced that it would liquidate all of its stores, laying off 10,700 workers. That same day, Cisco, the telecom equipment maker, said it would cut its workforce by 11,500. Within 24 hours, Lockheed Martin, the aerospace company, announced that it would eliminate 6,500 jobs.

At the same time, Caterpillar, the maker of construction equipment, said its profits were up 44 percent in the second quarter compared to last year. Office equipment maker Xerox saw its profits grow 41 percent in the same time.
General Electric’s profits were up 17 percent, PepsiCo’s were up by 18 percent, and McDonald’s, the fast food company, saw a 19 percent increase, reaching a new record.

The energy and mining companies did even better, benefiting from rising gas prices, which reduced the real incomes of American workers by billions of dollars. Halliburton, the oil contractor, said its profits were up by 53 percent in the second quarter compared to a year earlier, while fellow oil contractor Schlumberger said its profits were up by 64 percent.

Most of the major banks likewise said their profits were up significantly in the second quarter. Goldman Sachs announced $1.09 billion in profits, up 57 percent from last year. But even this huge increase was considered a “disappointment” for traders.

JPMorgan said its second-quarter profit was up by 13 percent, despite setting aside a $1.3 billion charge-off for lawsuits it expects in relation to its trafficking of fraudulent mortgages. Citigroup reported a profit of $3.34 billion, up 24 percent from a year ago.
This renewed growth in profits comes at the same time as the sharpest growth in unemployment since 2009. Between March and June, the unemployment rate grew by 0.4 percentage points, to 9.2 percent. In the same period, the number of unemployed people grew by 545,000.

Read more at: Profits soar amid mass layoffs

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If you can show a company that is laying off a whole bunch of workers and at the same time is booking record profits, you might have a story. Otherwise, your source is trying to conflate the two, and that's being disingenuous, to be generous.
 
If you can show a company that is laying off a whole bunch of workers and at the same time is booking record profits, you might have a story. Otherwise, your source is trying to conflate the two, and that's being disingenuous, to be generous.

Didn't we just have a thread about BMW doing this?
 
I say rock on for the companies. They are doing what is smart for the business. They don't exist to provide jobs.
 
I say rock on for the companies. They are doing what is smart for the business. They don't exist to provide jobs.

The essence of capitalism: I've got mine, and **** everyone else.
 
I say rock on for the companies. They are doing what is smart for the business. They don't exist to provide jobs.

But we should definitely give them more tax breaks so that they deem it useful enough to bestow upon us the blessing of jobs.
 
But we should definitely give them more tax breaks so that they deem it useful enough to bestow upon us the blessing of jobs.

Do you really think that the U.S. government is doing a good job competing for jobs. Capital is fungible, it can move wherever it gets the best return. Ignoring this is like putting your hands up to block an incoming wave and thinking you will not get wet.
 
As dozens of major corporations announced increased second-quarter profits this week, the US working class was hit with a disastrous new round of mass layoffs.
On Monday, book seller Borders announced that it would liquidate all of its stores, laying off 10,700 workers. That same day, Cisco, the telecom equipment maker, said it would cut its workforce by 11,500. Within 24 hours, Lockheed Martin, the aerospace company, announced that it would eliminate 6,500 jobs.

At the same time, Caterpillar, the maker of construction equipment, said its profits were up 44 percent in the second quarter compared to last year. Office equipment maker Xerox saw its profits grow 41 percent in the same time.
General Electric’s profits were up 17 percent, PepsiCo’s were up by 18 percent, and McDonald’s, the fast food company, saw a 19 percent increase, reaching a new record.

The energy and mining companies did even better, benefiting from rising gas prices, which reduced the real incomes of American workers by billions of dollars. Halliburton, the oil contractor, said its profits were up by 53 percent in the second quarter compared to a year earlier, while fellow oil contractor Schlumberger said its profits were up by 64 percent.

Most of the major banks likewise said their profits were up significantly in the second quarter. Goldman Sachs announced $1.09 billion in profits, up 57 percent from last year. But even this huge increase was considered a “disappointment” for traders.

JPMorgan said its second-quarter profit was up by 13 percent, despite setting aside a $1.3 billion charge-off for lawsuits it expects in relation to its trafficking of fraudulent mortgages. Citigroup reported a profit of $3.34 billion, up 24 percent from a year ago.
This renewed growth in profits comes at the same time as the sharpest growth in unemployment since 2009. Between March and June, the unemployment rate grew by 0.4 percentage points, to 9.2 percent. In the same period, the number of unemployed people grew by 545,000.

Read more at: Profits soar amid mass layoffs

Thoughts?
Comments?
Response?

The first company you mention is going out of business, not sure how they are supposed to keep their employees. Cisco is losing market share and has had disappointing earnings. What Cisco has to do JP Morgan escapes me.
 
But we should definitely give them more tax breaks so that they deem it useful enough to bestow upon us the blessing of jobs.

It's your party that gave GE a free ride on taxes...
 
That's the essence of life sir.

And that's why I don't really want to live in the same country as you. How about you take half the country and we take half the country and we see who's doing better in 50 years?
 
It's your party that gave GE a free ride on taxes...

And how much did that benefit the economy?

Do you really think that the U.S. government is doing a good job competing for jobs. Capital is fungible, it can move wherever it gets the best return. Ignoring this is like putting your hands up to block an incoming wave and thinking you will not get wet.

They have plenty of capital yet haven't been using it to create American jobs. Insert futility metaphor.
 
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But we should definitely give them more tax breaks so that they deem it useful enough to bestow upon us the blessing of jobs.

It'll surely work THIS time!
 
I say rock on for the companies. They are doing what is smart for the business. They don't exist to provide jobs.

That attitude may very well be the catalyst in the future for the mass's to erupt and "TAKE" everything the rich has and maybe more....dont push their hand...it can very well happen
 
Moon's right. The article cites companies doing well and then cites other companies laying off. Need an example of a firm doing both. Not different firms doing one or the other.
 
The essence of capitalism: I've got mine, and **** everyone else.

the essence of socialism

I can get wealthy by telling those who are too lazy to get theirs that if they give me power I will take stuff from a few and give it to them
 
And how much did that benefit the economy?



They have plenty of capital yet haven't been using it to create American jobs. Insert futility metaphor.


jobs are a way for a company to obtain a commodity known as labor

if they don't need labor why should they buy it

its like the USPS when they obtained a bunch of new LSMs which made the need for lots of clerks obsolete. of course one of the reasons why the USPS is a few billions in the hole is that the unions forced them to find work for people whose jobs were no longer needed when high speed sorting machines were installed

so demand for a product or service doesn't necessarily mean that company will have to add labor but rather up its capability to increase production or service
 
The essence of capitalism: I've got mine, and **** everyone else.

My feelings here are complicated but I'm curious. How many people do you employ?
 
My feelings here are complicated but I'm curious. How many people do you employ?

None, which I'm pretty sure you already know. Is there a point you'd like to make based on that?
 
None, which I'm pretty sure you already know. Is there a point you'd like to make based on that?

Sure. It's tough to make some of the judgements you are with no facts and no experience.
 
Sure. It's tough to make some of the judgements you are with no facts and no experience.

You seem to be forgetting that there's another side to the capitalist equation called the employee. Who gives two ****s about them though, right?
 
You seem to be forgetting that there's another side to the capitalist equation called the employee. Who gives two ****s about them though, right?

I don't even know what that is supposed to mean.
 
That attitude may very well be the catalyst in the future for the mass's to erupt and "TAKE" everything the rich has and maybe more....dont push their hand...it can very well happen

Everytime the "Masses" take from the rich it ends in untold horror, or do you not read history?
 
You seem to be forgetting that there's another side to the capitalist equation called the employee. Who gives two ****s about them though, right?

Most companies DO care, but caring and doing what's right for business are not always the same thing.
 
if they don't start hiring, i find it difficult to believe that people will have the discretionary income to continue purchasing their products.
 
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