Sociology-202
1:22pm
11/7/08
Wrap up 2-U.S. productivity slows despite employer efforts
Despite the attempts to increase productivity in the United States it is still decreasing. Many jobs have been cut in order to try and keep production going at a constant rate. “New initial claims for jobless pay fell by 4,000 last week to 481,000” this is according to the Labor Department. Job loss at cutting rates isn’t just happening in America but all around the world. For example, a few banks in Europe have had to cut interest rates in order to “combat slumping housing markets, weakening manufacturing, and raising rates of joblessness”. One company that has done better than many during this time is Wal-Mart; its stores in America have actually seen a rise in sales, during the month of October, by 2.4 percent. Since people are scared to lose their jobs they are holding back or tightening the amount that’s spent. Hoarding money causes demand to decrease, which then gives employers no other choice but to “cut payrolls”. “Cut(ting) payrolls” means that people end up losing their jobs which they were fearful of in the beginning. So people ended up causing the economy’s and their own downfall. Since people are aware of the economic recession or crisis that is occurring now and have been told that it will become worse, I believe has caused the entire situation to become worse. Since people worry about what is going to happen to them and their jobs they start to panic, which is not good in any situation, and act rashly. Cutting back on spending causes demands to decrease leading to the loss of jobs and a continuous cycle of economic decline occurs.
Source: "Wrap up 2-U.S. productivity slows despite employer efforts." Forbes.com. 6 Nov. 2008. 7 Nov. 2008
No comments:
Post a Comment