And this trend can be followed on the stockmarket. The nation’s economy is hurting, yet the stock market is at an all time high.
Stock market news today: Stocks rally as Salesforce’s 11% gain lifts Dow while S&P, Nasdaq reverse early losses
The company announced in its quarterly report an increase in its share repurchase authorization to $20 billion, with COO Brian Millham telling investors on a call, “We’re inspecting every part of our business to find opportunities to drive efficiencies and reduce cost of sales, marketing, and G&A.”
IOW, profits are not being gained from additional sales, but from cost cutting and we know that the salaried work force is the biggest expense and most cost cutting starts there.