Ten guys work at a factory, each makes $1,000 per week with good benefits--then the company is sold.
The new management fires five of the guys, and tells four of those remaining that they will just have to work harder to also accomplish the tasks the five fired guys had been doing. They understand this will take more time, but they are not willing to offer a pay raise. The benefits package is also cut to improve the dividends paid to shareholders and the salary of the CEO.
They then appoint the tenth guy First Assistant Chief Vice Manager, and start paying him $8,000 per week.
Now the ten guys make $12,000 a week between them instead of the ten grand they made last month.
How much has the economy grown?
2007-11-29 13:18:22 · 5 answers · asked by oimwoomwio 7 in Politics & Government ➔ Other - Politics & Government
To those who have (correctly) said that a company is not an economy--what happens to an economy if enough companies adopt the kinds of changes I have described?
2007-11-29 15:29:09 · update #1
It's not. It's shrunk like Bush's brain. Really, they've removed 5 people from their customer base. They've also caused themselves to pay the state their unemployment. Then they hired and overpaid a non- productive exec. If they get a sudden large order; they won't be able to fill it. And seeing as they'll have to raise prices to pay the exec, they prolly won't get many orders at all. Hello China.
2007-11-29 13:47:08 · answer #1 · answered by Bob H 7 · 1⤊ 1⤋
First off, I would like to thank the first poster for properly noting that a company is not an economy. Companies make up a portion of the economy.
With that said, anyone who thinks this is a growing economy has certainly been smoking some really bad crack. Home foreclosures are at an all-time high, minimum wage has been virtually stagnant, unemployment rates have been a roller-coaster ride, and fuel prices are higher than the person asking this question.
2007-11-29 21:31:16 · answer #2 · answered by Anonymous · 0⤊ 1⤋
well , the manager is the only one who votes, and contributes to campaigns the other workers just watched football and bought fourwheelers.... now the manager has more money to invest in other areas of the economy,
this is satirical of course....
2007-11-29 21:26:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A company is not an economy.
2007-11-29 21:25:00 · answer #4 · answered by Teekno 7 · 0⤊ 1⤋
Sounds more like a "growing pain".
2007-11-29 22:04:01 · answer #5 · answered by Anonymous · 0⤊ 1⤋