With the latest news of job cuts in America, it is pretty obvious how CEO's deal with economic slowdown: They fire people. Now, do you still want a CEO for President? You can't fire citizens when things go bad and that is their biggest ace in the hole when running a company. "Oh no, the company can't afford to pay me my 300 grand? Well we better cut a couple thousand jobs." Notice how taking a pay cut is never in their business plan.
And here is where the numbers get fudged. When all these recently laid-off and fired people file for unemployment the unemployment rate in America rises. When these people stay on unemployment past the 29 weeks or so, they no longer get a check, and therefore no longer show up in unemployment figures and then the numbers drop. Meanwhile the talking heads on TV will talk about it like it's good news. But what they don't realize, or at least don't report is that many of these people did not get new jobs, they just aren't collecting. Some have taken menial positions to pay the bills that an unemployment check can't - they also don't show up in the figures even though they now work at 7-Eleven. And don't forget the people that make too little to even file for unemployment - plenty of them out there that don't get counted.
So the next time someone tells you that we need a CEO for President or Mayor or another political position because they know how to create jobs, remind them that CEO's cut jobs just as easily as they create them.
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