Are All these Cost Cuts helping the Economy?

Under recession and severe financial crisis, every organization is trying to cut costs.
Is it really helping the economy in the wider sense.
When XYZ reduced the travelling expensese, Airlines & Transport Hire services are suffering.
There is driver in the street who lost his job because of it.
When the Airlines decided to cut the frills and serve no food on internal flights,
there is a flight catering company forced to close its operations and many employees went jobless.
So every act to reduce cost adversely affects some other services.
Or We are in a Vicious Cirle!!!
Which ecnomist can answer the peril put forth an equation to improve the economy?
Young Management Guru's from Harward or Cambridge or Institute of Managements with Laptop in the lap and mobile handsfree in ears and a bottle of Coke in the hand cant forecast the future.
They utterly failed when the Crude price rocketed to $170 a barrel and plummeted down to $55 a barrel.
They are all in imaginary ivory towers with no practical economic models and artificial case studies.

Battle needs to be won in the Field and not in Board Rooms.