At some point, businesses can't cut anymore employees or costs if they want to keep their doors open.
At that point, they need revenue growth and greater sales. This highly improbably in an economy that continues to shed jobs, sees asset values continue to decline, sees falling wages, and has a demographic tidal wave whereby retiring baby boomers become net sellers of assets to raise liquidity for retirement, putting further deflationary pressure on asset prices.
So, the whole idea that corporate profits can be maintained, or, even more ludicrously, grown, through perpetual cost cutting is a myth.
