As a result of profit declines three quarters in a row, Bloomberg claims that the US is slipping into a profit recession. Some believe this is a result of a slump in crude oil prices and a sharp rise of the dollar. Of course, it is easy to point to those or even a slowdown of the Chinese economy.
Instead of looking at the glass is half empty, some argue that these might be good things. There are definitely trade-offs. To increase profits, too many businesses focus on cutting expenses. That’s the “easier” thing to do, and is one way to greater profits if there is not a corresponding decline in quality.
