the belt is slowly tightening....
I noticed it a couple of weeks ago, when some hot coffee I was carrying back to my desk burned my hand.
As I continued pulling the cup out of the coffee machine, while I looked around for a lid...
my coworker glibly responded:: they're all gone, and I don't think the vendor's coming back for a coupla days. I did the same thing. The cups are smaller.
me: wha?
coworker:: You burned your hand, right? Yeah - I did the same thing. They replaced the large cups with a cup slightly smaller, I guess to save money. Problem is - they didn't reset the machine - so it's dispensing the same amount of coffee.
So I looked, and yes - the cup is about 2oz. smaller - so that the coffee spilled over. By the time the vendor came in with the lids, the machine was properly reset, and our 16 oz cup is now 14. Nice.
this isn't how it begins:: but this is how we begin to notice the inevitable tightening belt. With smaller cup sizes, and a lack of free feminine hygiene products in our bathrooms. And removal of the lotion dispensers in our fitness center. And smaller, thinner napkins and toilet paper in our restrooms. Yes, I know those are all wonderfully expensive amenities that I shouldn't necessarily expect. But these are all signs, of a much bigger, more pervasive economic reality. Companies are going to cut costs by any means necessary.
Don't get it twisted. I work for a very large multinational company, that has been in the Fortune 500, longer than the Fortune 500 has actually existed. And while the profits decline for the top US companies in the Fortune 500 list, $10-Trillion dollars is nothing to sneeze at. These companies are making money hand over foot. And yes, fuel prices are killing mid size companies, who either have to pass those costs on to consumer - or bear them and face financial insolvency. But big a$$ companies like mine keep reserves, and invest in fuel futures, and foreign currencies - to offset fuel price fluctuations. So the problem isn't just that fuel prices are rising, and the problem won't be resolved if fuel prices drop.
I told y'all a long time ago:
Greed isn't just good. Greed is inevitable
Global economic growth is predicted to slow (what with the cost of capital)...but it's not decreasing. It's decelerating. And there's a definitive shift away from the declining US dollar, to more attractive markets and currencies (emerging economies, anyone). So large multinationals are doing what they gotta do, to ensure that shareholder value is preserved. What is it about again class?
Profit.
Net Income (Profits) = Sales - Cost of Goods/Services. Simple math....if you decrease the cost of goods/services, you can increase profits. EVEN IF SALES DECREASE, you can still increase/maintain profits by cutting costs MORE than the sales decrease.
Hence my lil a$$ cup o' joe. And the missing tampons. And some marginally necessary positions at my organization not being refilled. And contractors being laid off. And changes to my company's retirement plan. And increases in my out-of-pocket health care costs.
fire sale:: I'm having a yard sale at my house, within the next few weeks. Whatever is at my house that I'm not currently using will either be in my front yard, or on eBay. Expect a whole lotta wonderfully cheap, new/slightly used plus size fashions, Nine West/Via Spiga shoes, decor from Pier 1, Crate and Barrel, West Elm and Target, and random stuff (manual treadmill, other fitness equipment, and lots of random "stuff" that needs to go). I need to simplify - and replenish my savings account. F*ck an economic stimulus package. Stakes is high.
The lil a$$ cup o' joe isn't the big problem here, it's a symptom of a much bigger problem. What happens when my job becomes one of those marginally necessary positions?