Thinking about my professional employment is rather disheartening. The global economic meltdown, combined with the fact that our executive management possesses a preponderance of genes scavenged from Ebenezer Scrooge, makes the work environment less than fully enjoyable. Naturally my son, the economist, was supportive:
“They are reducing the salaries by 10%, Darius.” I explained. “It is a permanent salary cut and they’re doing simply because they can…”
“Of course, Dad. All companies should optimize labor costs.”
“By optimize, you mean reduce?”
“From an economic perspective, it is a fundamentally flawed strategy to pay more than replacement value for anything. Right now there is a huge labor surplus. Therefore..”
“Darius..”
“In these conditions, Dad, companies can reduce employment expenses. Thus, to stay competitive, they must reduce...”
“I don’t want my salary to be reduced.”
“Things will eventually turn around, Dad. The economy will reverse itself. Labor will be in short supply and then you will be able to demand a higher wage.”
“Somehow, Darius, I doubt that my ‘demand’ will be answered.”
“The economic model is clear..”
“The model doesn’t know that I’ll retire before the economy itself sesrever.”
“They are reducing the salaries by 10%, Darius.” I explained. “It is a permanent salary cut and they’re doing simply because they can…”
“Of course, Dad. All companies should optimize labor costs.”
“By optimize, you mean reduce?”
“From an economic perspective, it is a fundamentally flawed strategy to pay more than replacement value for anything. Right now there is a huge labor surplus. Therefore..”
“Darius..”
“In these conditions, Dad, companies can reduce employment expenses. Thus, to stay competitive, they must reduce...”
“I don’t want my salary to be reduced.”
“Things will eventually turn around, Dad. The economy will reverse itself. Labor will be in short supply and then you will be able to demand a higher wage.”
“Somehow, Darius, I doubt that my ‘demand’ will be answered.”
“The economic model is clear..”
“The model doesn’t know that I’ll retire before the economy itself sesrever.”