Search This Blog

Monday, December 08, 2008

How Come So Many Layoffs?

A friend of mine thinks all the massive layoffs that increased right after the elections are caused by greedy corporations that "don't want to give Obama a chance".

Of course, he thinks everything is pretty much caused by greedy corporations and Republicans that "don't want to give Obama a chance".

I think it's kind of like skydiving.

Why do people skydive? Because you have the thrill of falling and soaring like a bird, then your parachute opens and you drift safely to the earth.

It's a risk, but the rewards are pretty great, so people pay a lot of money to skydive and pilots and ground crew and chute packers and parachute sellers make money.

Now imagine someone removes 50% of the panels from everybody's parachutes. Now when you jump out of the plane, you'll still soar all right, but when the chute opens a lot of the fun of the thing goes out of it. There is all that terror and screaming and then when you hit the ground there will be the broken bones and the months in the hospital and a good chance you'll be dead.

The risk factor just went up to the point that it's no longer much fun to jump out of the plane. Taking 50% of the panels from the chute took all the fun out of skydiving. So instead of skydiving, you do something else with your money besides hire chute packers, pilots and ground crew. You don't buy expensive parachute equipment. Instead you do something cheaper and less risky.

I hear that attendance at the movies is way up!

Economics 101.

Just one man's opinion.



No comments: