We just found out that the third quarter GDP has been revised down from 2.5% to 2%. Yet, at the same time, corporate profits have been revised up.
Several people have been asking, “How can profits for corporations be going up and yet GDP is going down from where we thought it would be?”
Of course, all you have to do is see that there is a continued Wall Street recovery as we have a continued Main Street recession. We still have, for the most part, a jobless recovery. Now it’s not completely jobless, but we’ve not been producing the jobs that we’ve wanted to produce. We see companies that instead of hiring, are saying, “Well, we can do more with less,” meaning, “We can use technology to do things that we needed people for in the past. And instead of hiring back all of those people now that we’re starting to increase our profitability, maybe we can use technology instead and just not hire those people back. We’ll do, again, more with less people, instead of more with less money,” which is what more with less used to mean.
So, in order to break that issue of a jobless recovery, we must realize the hard trends of the transformations that are taking place, and that we are, indeed, transforming how we sell, how we market, how we communicate, collaborate, innovate, train, and educate. That represents amazing opportunities for those that will see it and take action on it.