Economic cost of Restructuring

Layoffs

Every one layoff, if workers make 40,000 to 75,000 of disposable income, is now taken out of the economy. This always causes a cascading effect, because one layoff leads to another layoff; which could lead to a recession.

Disposable income equals the income available to spend after taxes. So layoff or firings lead to a negative returns to scale in the Macro Economic economy. So in my image if the geese represents 2 workers that now have less money to spend on their family with a layoff. See image below of the results of layoffs. Less money for the goslings chicklets.