One of the big problems for firms is labor costs. Once you raise wages, you generally can't cut them again. As we know, American bosses are not particularly squeamish about firing people. This is likely to get more difficult. What you're describing here is a scene in which companies won't be making the fact profits for, well, possibly ever again. But at the long term, I wouldn't be confident betting against American business.
State media have taken to calling President Xi Jinping “the helmsman”; at the five-yearly meeting he defended his means of steering the country. We ask how to read between his tightly prepared lines. Many of America’s firms will soon deliver disappointing profits—and there is more to blame than simple business cycles. And research suggests that parenthood causes fathers’ brains to shrink.
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