Nbadan
03-31-2006, 03:35 PM
http://www.economist.com/images/20060114/CSF118.gif
WASHINGTON (MarketWatch) -- U.S. corporate profits have increased 21.3% in the past year and now account for the largest share of national income in 40 years, the Commerce Department said Thursday.
Strong productivity gains and subdued wage growth boosted before-tax profits to 11.6% of national income in the fourth quarter of 2005, the biggest share since the summer of 1966. See full story.
For all of 2005, before-tax profits totaled $1.35 trillion, up from $1.16 trillion in 2004 and just $767 billion in 2001.
Meanwhile, the share of national income going to wage and salary workers has fallen to 56.9%. Except for a brief period in 1997, that's the lowest share for labor income since 1966.
http://www.epi.org/images/snap20060330figb1.gif
Profits have been so high because almost all of the benefits from productivity improvements are flowing to the owners of capital rather than to the workers.
Market Watch (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC4257910%2D8351%2D437A%2D8C00%2 DE4CF3B782091%7D&dist=newsfinder&symbol=&siteid=mktw)
ONLY debt is financing current consumer spending for many middle-class Americans:
http://www.financialsense.com/Market/cpuplava/2006/images5.a.gif
WASHINGTON (MarketWatch) -- U.S. corporate profits have increased 21.3% in the past year and now account for the largest share of national income in 40 years, the Commerce Department said Thursday.
Strong productivity gains and subdued wage growth boosted before-tax profits to 11.6% of national income in the fourth quarter of 2005, the biggest share since the summer of 1966. See full story.
For all of 2005, before-tax profits totaled $1.35 trillion, up from $1.16 trillion in 2004 and just $767 billion in 2001.
Meanwhile, the share of national income going to wage and salary workers has fallen to 56.9%. Except for a brief period in 1997, that's the lowest share for labor income since 1966.
http://www.epi.org/images/snap20060330figb1.gif
Profits have been so high because almost all of the benefits from productivity improvements are flowing to the owners of capital rather than to the workers.
Market Watch (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC4257910%2D8351%2D437A%2D8C00%2 DE4CF3B782091%7D&dist=newsfinder&symbol=&siteid=mktw)
ONLY debt is financing current consumer spending for many middle-class Americans:
http://www.financialsense.com/Market/cpuplava/2006/images5.a.gif