Worker productivity increases as companies slash jobs.....Wall Street Rejoices

:mad:

To quote V (for Vendetta): "There's something terribly wrong with this country, isn't there?" .... The underbelly of capitalism - it's not pretty.:scared:



from Bloomberg:



U.S. Worker Productivity Increases More Than Forecast (Update2)

By Courtney Schlisserman

May 7 (Bloomberg) -- U.S. worker productivity unexpectedly accelerated in the first quarter as cuts in jobs and hours left fewer employees to do more, helping combat inflation.

Productivity, a measure of efficiency, rose at a 2.2 percent annual rate after a 1.8 percent gain the fourth quarter, the Labor Department said today in Washington. Labor costs climbed at a 2.2 percent pace, down from a 2.8 percent increase in the last three months of 2007.

Slowing sales and soaring expenses for raw materials like fuel prompted companies to trim staff hours by the most in five years last quarter. The weakening job market will probably keep a lid on increases in pay, indicating there is little risk that escalating wages will boost inflation.

``Because of the downturn in the economy, firms are relying more on productivity than increased labor for output,'' said Jonathan Basile, an economist at Credit Suisse Holdings Inc. in New York. ``This is constructive for the inflation picture.''

After the report, U.S. stocks were little changed and the dollar stayed higher against the euro. The dollar increased 0.8 percent to $1.5403 against the euro at 9:31 a.m. in New York, from $1.5533 yesterday, and the Standard & Poor's 500 Index opened down 1 to 1,417.3.

Economists forecast productivity would rise at a 1.5 percent annual pace, according to the median of 69 projections in a Bloomberg News survey. Estimates ranged from gains of 0.5 percent to 2.5 percent. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601068&sid=atkV7qLBdWYs&refer=home

We're working people's asses off to make up for our lack of planning and short-sightedness.

accept smaller profits. If they continue to try to rack large amounts of cash out to the economy it will collapse:scared:

Spin the engine fast enough and it destroys itself.

and it's gonna ROCK!!!!!!!!!!! CHAOS!!!!!!!!!! *plays generic metal guitar rift*

:kick:

slaves are some of the most productive folk you can come across..

Because officially one can only say there is an inflation problem only if labor costs increase.

Ownership Society isn't worried.