Muses on Capitalism (Employees)

Isn’t it strange that corporations treat things as assets and people as expenses? 

If profit, stock price, and executive bonuses are the key drivers of a corporation then it is perfectly logical that when times are tough things are preserved and the employee is expensed.

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4 thoughts on “Muses on Capitalism (Employees)

  1. It doesn’t seem strange to me. Maybe it’s the mathematician in me. An employee is also referred to as a “human asset”, so their salaries are the expense paid to gain access to the “human asset”.

    • Look at the revenues and ask yourself, who does the work that generated the revenue? A profit and loss statement tracks the flow of money, not the flow of value. I worked at a Pillsbury bakery several years ago. We converted yeast, water, flour, and butter into croissants. I’m pretty sure the process of baking/freezing was not tracked on the profit/loss statement. I’m sure the process of putting croissants into boxes to facilitate shipment was not on that statement, either. Money flowing in has to exceed money flowing out, or you will cease to be in business. That doesn’t mean the things your business do don’t have value. That doesn’t mean the people who do them don’t have value.

      • You are brave for posting comments on this topic. Companies lay people off because they want to make their profit numbers…stock price…executive bonus. Employees are expendible…and they feel as such. I have had horrible experiences watching people being expensed…it truly tore my soul apart.

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