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Tuesday, March 05, 2013

Corporate Profits Have Risen Almost 20 Times Faster Than Workers’ Incomes Since 2008

Corporate profits hit record highs in the second half of 2012, but that prosperity hasn’t led to the creation of jobs, since America’s biggest firms are sitting on stocks of cash instead of investing them back into the economy.

At the same time, wages hit record lows, and corporate earnings are rising nearly 20 times faster than disposable incomes, the New York Times reports:
As a percentage of national income, corporate profits stood at 14.2 percent in the third quarter of 2012, the largest share at any time since 1950, while the portion of income that went to employees was 61.7 percent, near its lowest point since 1966. In recent years, the shift has accelerated during the slow recovery that followed the financial crisis and ensuing recession of 2008 and 2009, said Dean Maki, chief United States economist at Barclays.

Corporate earnings have risen at an annualized rate of 20.1 percent since the end of 2008, he said, but disposable income inched ahead by 1.4 percent annually over the same period, after adjusting for inflation.

3 comments:

  1. So? Business' have the bigger hole to climb out of. End this entitlement thinking. Until the government stops taking from the people who create jobs, workers should get nothing more.

    ReplyDelete
  2. 950 workers (ie the American consumer) ARE the job creators. CEO's and small businesses don't hire out of the goodness of their heart.

    ReplyDelete
  3. corporations are in business to make a profit.

    shareholders and owners want as much back as possible, after all without thier investment you dont have a company or a job

    ReplyDelete

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