Sarah Anderson, President of the Institute for Public Study, has discovered through research that CEOs from the companies with the most job cuts made more money, Twelve Million Dollars more, on average, than other CEOs in Fortune 500 Companies who maintain the well being of the company and workers. Anderson also reports that it is customary to lay off workers during the years of the highest profit. These job cuts boost the profits and add up to more money in the pocket of CEOs.
Later, due to the displacement of workers and needing to train new workers to take their place, it costs the company more money, but the CEOs are only interested in short term profit and are rewarded for it. What happens to these laid off people? We end up paying for them in unemployment, underemployment, the ripple affect when mortgages fail, and through the loss of tax revenues.