In recent years, the financial press reported story after story regarding downsizing and layoff s in the U.S. auto industry. Often the stories discussed multiple rounds of downsizing events (such as those at General Motors).
Assume that you are a stock market analyst and are responsible for interpreting the economic significance of corporate layoff s. In general, would you interpret the auto industry layoff s as good news or bad news? Explain the rationale for your answer.