LABOR 280 Lecture Notes - Lecture 6: Leveraged Buyout, Simplicity Pattern, Liver Disease
20 Feb 2017
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Labor 280 lecture notes thursday february 16, 2017. Had a million in the bank. Leveraged buyout: makes no intuitive sense, firms could buy other firms by leverage instead of cash. Uses firm"s cash to invest in business that seem irrelevant. Became million in debt meaning million was spent by 4 corporate raiders. Financial costs of 1% rise of unemployment (in 1982 dollars): billion reduction to gnp economically costly. 1% of unemployment translates to 37,00 deaths: 20 heart problems, 500 liver problems, 920 suicides . Closed down from being in debt: spent money on new machines, expanded their line of furniture. Worked with vietnam to produce cheaper furniture. Workers were skilled worked very detailed. Jeffrey t. grade and the boondoggle in indonesia: Decided to build a paper mill in indonesia. Closed the most profitable mill in dalton, ma. Emotions affected corporate decisions and cost factories their money and jobs. From the shop floor to the board room:
