Robert Reich: Stock Tip: Be Worried. Workers Are Consumers.

It seems I was ahead of the game with my comment back in 2010:
Submitted on 2010/11/17 at 10:51 pm | In reply to Wizcon.
I have to wonder what the end result will be in the money grab. Doesn’t, at some point, the middle class cease to be able to support these rich guys because there is no money to spend?
If these CEO’s are so damned smart that there is justification in paying them millions, how come they haven’t figured this out yet?

Stock Tip: Be Worried. Workers Are Consumers.

Repeat after me: Workers are consumers. Consumers are workers.

We’re slouching toward a double dip, and the stock market is imploding, because consumers — whose spending is 70 percent of the economy — have reached their limit.

It’s not just the jobless who can’t spend. It’s mainly people with jobs. Median wages continue to fall. Weekly wages in July for Americans with jobs were 1.3 percent lower than eight months before.

America’s median earners are now earning less (adjusted for inflation) than they earned ten years ago.

Every CEO of every company that continues to squeeze payrolls (Verizon, are you listening? Ford?) needs to understand they’re shooting themselves in the feet. Where do they expect demand for their products and services to come from?


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6 Responses to Robert Reich: Stock Tip: Be Worried. Workers Are Consumers.

  1. Wizcon says:

    I have been saying this as well. I have decided that the CEO’s are aware of this but are shooting for all they can get while they can. Then hire at lower wages and bennies. Still won’t solve their profit through sales and service but they are also getting tax breaks and no taxes through organizing themselves to show profit on their foreign holdings and the concessions States make to get them to set up shop there. IE Boeing and more recently Gov Scott Walker. The GOP has fallen right in line with this.

    Sage Reply:

    Yes, you and I had a discussion about this. I don’t know who they think is going to have the money to buy their crap.

  2. timesr says:

    Wow Sage, I love what you’ve done with the old place.

    Sage Reply:

    Thanks. How are you timesr?

  3. timesr says:

    I am well, thank you for asking, rather discouraged over the political scene though.

    How are you? I hope the job is going well.

    Sage Reply:

    Not enough work at the job right now so I’m looking for another yet again.

    I hear ya about the discouraged over the political scene…..which is why I took a break.

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