Isn’t there some kind of contradiction here? June 13, 2007Posted by Jim Satterfield in Business & Society, Economics.
On the way home I was listening to Marketplace on the local public radio station. They were citing the news that consumer spending was up last month as the main reason for the big rally on Wall Street today. After all, those smart Wall Street traders know that 70% of the American economy depends on the American consumer. Then why do they always reward companies that fire thousands of workers, most of whom will not land jobs paying as much as their old ones and therefore not be contributing nearly as much to that dynamic economy? How do they reconcile these attitudes? They expect Americans to be on the receiving end of multiple forces minimizing their incomes even as they recognize that the spending of the middle class is what drives company profits and never seem to realize that the two just don’t go together.