The business section of today’s Globe carries an AP story about signs of economic recovery. It would seem to fail the stinky cheese test (that’s a highly technical term, unfortunately too complicated to explain here).
The Labor Department said yesterday that productivity, the amount of output per hour of work, rose at an annual rate of 6.4 percent in the April-June quarter, while unit labor costs dropped 5.8 percent. Both results were greater than economists expected.
The story notes that rather than pay workers more or hire more workers, companies are keeping the money to boost their profits.
So the workers, the consumers who buy the products resulting from the greater productivity, don’t have the money to spend to buy stuff they produce. And if they can’t buy stuff the economy slides down the tubes again. And the big boys get richer off of their shell game.
For this the honchos got MBA degrees? Any street grifter could have taught them this con game.
Hold on to your wallets folks. The bright boys are going to screw you over again. And again. And again…