Today was another interesting day in my entrepreneurial finance class with Duke Bristow. I love the format of this class. We begin every session with a ~20 minute discussion of the Wall Street Journal before diving into lecture material. The professor enjoys provoking feedback, opinions and insight on currents event from students, and then he provides his own commentary on the topic (which usually has a small government and economist spin).
Today we discussed an article in the WSJ titled No Rush to Hire Even as Profits Soar. The Wall Street Journal offers a graph (see right) of quarterly U.S. employment and profits in support of its point that while profits have rebounded sharply since Q4 ’08, job creation has been meager. Logically, one might think, “Hey, profits are back, so why the hell aren’t these greedy corporations hiring anyone?!!” The professor encouraged a little logic test to tease out why job creation may be slow. I know, logic to news is a terrible habit; you might not believe everything you read, a disaster :). (more…)