Passage Summary: An economist thinks companies prefer firing people to cutting everyone's pay because the fired people take their bad vibes with them, leaving the remaining staff supposedly happier.

Conclusion: Companies facing a recession are more likely to choose layoffs over wage reductions to save on costs.

Reasoning: While both options hurt employee morale, layoffs are less damaging overall because the employees most upset by the change are no longer with the company.

Analysis: The economist's argument hinges on the idea that the 'unhappy' factor is removed along with the laid-off employees. It's a cold-blooded take on office culture, assuming that those left behind won't be too traumatized to work. To strengthen this, look for an answer that confirms morale is a primary motivator for these corporate decisions or that wage cuts are universally more depressing than seeing your desk-mate get the boot.