07 Jun 2007
Dow plunges after labor cost data

Hmmm, increased labor costs, huh. Think about it with me.

If I, as a worker, produce more economic goods and services, while not earning more money for doing so, it's called "productivity growth", and that's a "good" thing. If a business produces (or sells) more goods and services while not earning more money for doing so, it's called "declining profits", and that's a "bad" thing.

What's the difference?

In a free market, producers are rewarded for their efforts. In a system of state capitalism (or state socialism, for that matter), they're punished. In our society, corporations operate in a relatively free market environment. Workers don't.

AP - Stocks slid for a second straight session Wednesday after an increase in labor costs stirred concerns about inflation and interest rates and as the yield on the benchmark 10-year Treasury flirted with 5 percent. The Dow Jones industrials fell more than 140 points.


(link) [Yahoo! News: Top Stories]

06:40 /Politics | 1 comment | permanent link