The Two Sides of Corporate Downsizing

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The Two Sides of Corporate Downsizing

Downsizing has become an acceptable part of modern business. The value of the individual worker has faded from view as companies strive to channel all their energies toward greater profits. According to Manning Marable, in his essay “Fighting for a Decent Wage,” presently we have “companies that only are concerned about profits and not people” (376). Unlike Marable, Robert J. Samuelson points out that this focus on profits may actually be beneficial to our economic system. In his essay, “Downsizing Isn’t All That Heartless,” he states, “the anxieties that unsettle people may make them more prudent and more productive in ways that strengthen the economy” (373). Samuelson definitely deserves credit for his compelling and optimistic argument. However, the facts presented in Marable’s essay must not be ignored. Marable says that, “The typical CEO of America's 100 largest corporations receives about $900,000 in annual salary, and $3.5 million in overall compensation” (376). The astounding difference between these salaries and those of the common workers should send us a negative message. In fact, downsizing is not the answer to our present economic situation, because it will not help the average workers who need to provide for their families, rather, we must make sure that salaries are assigned in a fairer manner.

As Marable puts it, in his essay “Fighting for a Decent Wage,” there has been a decline in living standards for American workers. Too many people do not make enough money to support families, and the situation is not improving. Once, it was a problem faced solely by blacks and other minorities, now white Americans too are feeling the painful effects of poverty. Accordi...

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... salaries and wages.

Works Cited

Downs, Alan. Corporate Executions: The Ugly Truth About Layoffs—How Corporate Greed Is Shattering Lives, Companies, and Communities. New York: Amacom, 1995.

Ludy, Perry J. Profit Building: Cutting Costs Without Cutting People. San Francisco: Berrett-Koehler, 2000.

Marable, Manning. “Fighting for a Decent Wage.” Reading Culture. 4th ed. Ed. Diana George and John Trimbur. New York: Longman, 2001. 374-377.

Rutz, Raymond. Personal Interview. 20 Nov. 2003.

Samuelson, Robert J. “Downsizing Isn’t All That Heartless.” Reading Culture. 4th ed. Ed. Diana George and John Trimbur. New York: Longman, 2001. 373-374.

Stafford, Diane. “More than 955,000 have lost jobs in mass layoffs this year.” The Kansas City Star 25 Jul. 2003. 19 Nov. 2003.

http://www.bradenton.com/mld/kansascitystar/2003/07/25/business/

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