Still think that the economy is improving? If the shutdown of the Dell plant around here isn’t enough to scoff at that mindset, let’s look at an even larger one. Sun Microsystems is looking to layoff three thousand more employees. Now, while layoffs are inevitable during mergers and acquisitions (in this case with Oracle), this also represents something a little bit larger.
It says that until corporations or the government gives a nice jab in the arm on hiring, the overall percentage of buying power has been reduced. This hurt can and will be felt through both retail and financial markets since people without jobs cannot pay loans and mortgages. And let’s face it. Saving the financial institutions do not amount to squat if the people that the money is being loaned to can’t get work to actually pay it back. This is not only brings financial players to a grinding halt, but it shows that politicians do not understand the basics of economics. Everything starts with the beginning of the food chain, not the end.
What’s worse is that until someone does actually gain this bright idea, all of the injection of federal funding is for naught. That means that the taxpayers bear the burden of a costly mistake, of which becomes more and more weight per each individual as more and more people cannot find work. And you wonder how Congress can sleep at night with a twenty or so percent approval rating.