Friday, November 9, 2012

Elections Have Consequences - The Layoff Bomb Has Been Detonated

Prior to the election, many business people across the country stated that if Obama won, and we could expect 4 more years of the same financial (higher taxes and cost of the Obamacare tax) and business policies (more regulations) coming out of the White House, that there would be consequences to that... namely that they would have no choice but to lay people off, and in some cases close plants or offices.

This is now coming to fruition as scores of businesses, just within 48 hours after this election, have made announcement of massive layoffs.

For example:
Boeing’s defense division announced a major restructuring of its defense division that will cut 30 percent of management jobs from 2010 levels, close facilities in California and consolidate several business units to cut costs.

A major wind company, Vestas, says it will cut an additional 3,000 jobs by the end of 2013. That nearly doubles the number of jobs the wind turbine company had planned to eliminate. Most recently Vestas it would layoff 3,700 people by the end of 2012.

There is a list on the Blaze. Read it here.

Companies announcing layoffs in the last 48hrs:
- Westinghouse
- Research in Motion Ltd.
- Lightyear Network Solutions
- Providence Journal
- Hawker Beechcraft
- CVPH Medical Center
- US Cellular
- Commerzbank
- Iberia
- Momentive Performance Materials
- Brake arts
- Gameforge Berlin
- Vestas Wind Systems
- Husqvarna
- Ericsson
- SRA International
- PerkinElmer
- Majestic Star Casino and Hotel
- Center for Hospice NY
- Bristol-Myers
- Lower Bucks Hospital
- Oce North America
- Corning
- United Blood Services Gulf
- Atlantic Lottery Corporation
- Welch Allyn
- Dana Holding
- Stryker-Boston Scientific
- Medtronic
- Smith & Nephew
- Abbott Labs
- Covidien
- Kinetic Concepts
- St. Jude
- Hill Rom
- Darden Restaurants
- Kroger
- Caterpillar
- Alcatel-Lucent
- Umatilla Chemical
- Rocketdyne

I am certain there will be much more.
I heard that the company my husband works for is planning to close an office in Scottsdale, AZ.

The end result, of course,  will be lower US productivity as businesses scale back instead of expanding.
More people will be out of work and become dependent on government help.. unemployment and food stamps, etc..
Government cannot afford to pay more entitlements so they will print more money - creating more inflation .. and on and on goes the spiral downward.

The stock market has lost 400 points since the election as well..
Meanwhile in Washington, Taxmageddon is on the horizon.

Speaker of the House Boehner (R) and Senate Minority Leader Mitch McConnell (R) vow "NO" on raising tax rates... the Congressional fight is on against the Democrat administration and Democrat Senate Majority that wishes to kill off the rest of the economy with higher taxes and more spending .. in fact, they are already talking of raising the debt ceiling again (increasing the government credit card limit) ... and truly, no matter what happens with that, this country is still on track to face an unprecedented financial tsunami.

Looks like it's time for Obama to go play a few rounds of golf while his wife jets off on some vacay to somewhere exotic.