What’s the use of a crisis if big corporations and wealthy people can’t use it to make more money, preferably at the expense of those with less than them? I ask you!
Well, by that standard, the coronavirus pandemic has worked out quite well. A large majority of the biggest publicly traded companies were profitable between April and September, but more than half laid off workers. Meanwhile, they watched small business revenue crash and many small businesses go under.
According to a Washington Post analysis, it breaks down like this: “45 of the 50 most valuable publicly traded U.S. companies turned a profit,” with an average of 2% revenue growth through the first nine months of the year. But at least 27 of those 50 firms had layoffs, leading to more than 100,000 people losing their jobs.
At the same time, small business revenue dropped 12%, with at least 100,000 small businesses closing.
To add insult to injury for the workers laid off by these large, profitable companies, many entered the pandemic with rah rah rhetoric about protecting their workers. Salesforce CEO Marc Benioff pledged “not to conduct any significant lay offs over the next 90 days.” He kept that promise. But about two months after that 90 days was up, Salesforce laid off 1,000 workers despite big profits.
This is 21st century corporate capitalism in action. Every disaster is an opportunity for more profit, and responsibility to the workers that make your company run is a meaningless concept. It’s one more reminder that claims about corporate tax cuts—like the ones the Republicans passed in 2017—meaning job creation should never, ever be believed. The tax cuts and the pandemic alike saw companies doing huge share buybacks to benefit the already wealthy, while workers reaped no benefit to speak of.
This blog originally appeared at Daily Kos on December 16, 2020. Reprinted with permission.
About the Author: Laura Clawson has been a contributing editor since December 2006. Clawson has been full-time staff since 2011, and is currently assistant managing editor at the Daily Kos.