Street Praises Profits Over Payroll

“When it comes to the stock market,” Cramer said during Monday’s Mad Money, “joblessness in the US isn’t a bad thing.”

He wasn’t making light of America’s bleak employment situation. He was merely noting that Wall Street rewards the companies that lay off huge sections of their US workforce. And why not? Given certain initiatives coming out of Washington – health care, cap and trade – and a lagging economy, it’s too expensive and none too productive to do business here.

The stocks that have been rallying are tied to companies that have shifted their focus overseas – because that is where the money is being made. The most viable business strategy seems to be trimming down in the States while seeking out international customers. Wall Street certainly has been applauding those that do and penalizing those that don’t.

Consider Caterpillar . This is a company that thrives on increased building and road construction, but little of that is taking place here. Still, CAT jumped $3.79 on Monday – because of a flood of international orders and mass layoffs in the US.

UPS is very similar. The stock ramped for the second day in a row, following Friday’s better-than-expected earnings report. But why run today as well? Because the company announced it would fire 1,800 people.

This is especially important going into earnings season, Cramer said, because what matters now is, well, earnings. And like it or not joblessness equals profits.

Obviously, this isn’t ideal for America, but it is a reality. And while Cramer never hesitates to rail against Washington’s inability to create jobs, he won’t let his personal feelings get in the way of making money for Mad Money viewers. He urged them to adopt the same attitude.

“I’m not asking you to love the situation,” Cramer said, “but if you care at all about your portfolio, then you have to at least acknowledge that this is the way things are.”

Cramer's charitable trust owns UPS.

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