The Four Horsemen of Washington’s Economy are Riding Again

Boeing, Microsoft, Starbucks and Amazon. When three of these four iconic companies were in trouble two years ago, they signalled broader pain for our economy. That’s because these companies had long been solidly profitable, reliable generators of job growth. Their spending supported an entire ecosystem of companies around them. When they laid off employees they contributed to a drop in business activity and a sharper rise in unemployment. We were lucky to have Amazon, one of the few large companies still hiring during the tough times.

Now all four companies are showing substantial improvement in performance. Microsoft announced a 35 percent jump in profits for the third quarter ended March 31. Amazon’s profits were up 68 percent. during the period. Starbuck turned a profit of $340 million in the quarter, up from $41 million the year before. Although Boeing experience a sharp drop in profits, its finally making some progress in its 787 airliner to the point where it is likely to soon ramp up production. The companies may not be adding a lot of workers yet, But that should follow soon. The four horsemen are riding again. And that’s good news for our economy.