Wednesday, March 28, 2007

Circuit City to Fire 3,400, Rehire Cheaper Workers

Circuit City Stores Inc., the second-largest U.S. electronics retailer, will fire 3,400 sales people and replace them with employees willing to work for less.
Posted Mar 28, 2007 10:13 AM PST
Category: ECONOMY

Now, think very carefully about this. If EVERY company fires their staff and rehires at lower wages and salaries, then the consumer base as a whole (already up to their limits on their credit cards) will stop buying what Circuit City has to offer for sale.

Henry Ford was a very smart man in that he paid his workers MORE than the prevailing wages because he understood that his employees were also his customers and by making sure that Ford employees could buy the cars they were making, the cars would be seen on the roads and become his best advertising.

Ford prospered by making his community around him prosperous. That was smart.

Circuit City's managers are making themselves prosperous by keeping all the money to themselves, and when enough companies follow suit, they will destroy their own customer base.

By Mike Rivero


caesar4441 said...

The problem has long been known.The former Karl Marx stated 150 years ago that capitalism will destroy itself.
We only can wait.

Marc Parent mparent7777 mparent CCNWON said...