The Economic Divide Between Big and Small Companies Is Growing (msn.com)
- Reference: 0180459813
- News link: https://news.slashdot.org/story/25/12/26/1623248/the-economic-divide-between-big-and-small-companies-is-growing
- Source link: https://www.msn.com/en-us/money/markets/the-economic-divide-between-big-and-small-companies-is-growing/ar-AA1T17TU
Private firms with fewer than 50 workers have steadily shed jobs over the past six months, according to payroll processor ADP, cutting 120,000 positions in November alone. Midsize and large firms continued adding jobs during the same period. The divergence mirrors what's happening among American consumers.
The Federal Reserve's latest beige book noted that overall consumer spending declined further even as higher-end retail spending remained resilient. Workers at small businesses tend to earn less than those at large companies, and stock market gains from large public company shares flow mostly to wealthier Americans. Small businesses -- those with up to 500 workers -- employ nearly half the American workforce and represent more than 40% of GDP, according to the U.S. Chamber of Commerce. But their profits are slightly lower than a year ago, per a Bank of America Institute analysis. Net income at S&P 500 companies rose 12.9% from a year earlier in the third quarter.
[1] https://www.msn.com/en-us/money/markets/the-economic-divide-between-big-and-small-companies-is-growing/ar-AA1T17TU
That's what happens when the rules are stacked (Score:2)
This is what happens when the laws/rules are stacked against the small people.
Re: (Score:2)
Trickle down economics causes more damage than Republicans want to admit.
Funny choice - to use "cutting staff" as a metric (Score:2)
Those aforementioned "largest corporations" are also doing that.
Small vs large business (Score:2)
Small businesses have less reserves and react to the economy immediately.
Large ones take more time to react but can survive short term down terms due to their large piles of cash.
Also which are you calling small businesses - upto 50 or upto 500? Those are radically different definitions used in that post.
Personally 50 or smaller is a large business, but 400 definitely seems like a mid sized company to me. I would even say that if you employ 100 people, that is pushing it to call it small. If you have tha
Re: (Score:2)
*correction: 50 or less is a small business.
Small Business is not efficient (Score:2)
We all know the story of the big company pushing out the small ones. Now the major irony is the places and people that outcome most effects are in fact supporting policies that are accelerating that outcome. We in America we like small business, we venerate it and I think on the net that's a good thing, we've enjoy our entrepreneurial spirit but we also have to accept that left to "the market" alone most of them will be destroyed by the bigger companies and that's why we do in fact subsidize and protect s
Obviously? (Score:1)
The lowest value a company can have is zero. As corporate valuations increase along with inflation and other factors, that gap increases and it'll hold true for every step along the distribution.
A better way to put this might be something like "Small companies are getting smaller".
Re: (Score:2)
You forget about debt, so companies can be worth less than $0. Stock prices and "market cap" may have $0 being at the bottom though.