The Wages of Downsizing
Contrary to popular myths, downsizing does not necessarily make companies more profitable, more productive, or even smaller. As former downsizer Alan Downs reports, however, it does drive down wages.
I made my way to the front of the auditorium where 100 or so current and prospective members of Congress were filling the seats. The Democratic Caucus had invited me, along with other political, academic, and business experts, to participate in a panel discussion on what promises to be the key question of the presidential election: Has the average American worker benefited from the economic gains of the past several years?
Joseph Stiglitz, chair of the president's Council of Economic Advisers, spoke first. Freshly armed with an election-year report that suggests the economic anxiety workers feel is largely a figment of their imagination, Stiglitz implied the media and ambitious politicians have fooled American workers into thinking their jobs are in jeopardy.