Part 7/11:
The spillover effects are significant. When large segments of government or private sector workers are laid off—say, 300,000 to 400,000 jobs—the decline in consumer spending and services impacts overall economic activity. Interestingly, despite these reductions, corporate profits remain high, and GDP growth continues, illustrating an economic decoupling. This decoupling refers to the divergence where GDP and corporate profits are rising even as human employment shrinks, exemplifying the post-labor economic paradigm.