Voodoo Economics

[Nbadan]

WASHINGTON (Marke ch) -- 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.

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

ONLY debt is financing current consumer spending for many middle-class Americans:

[Sec24Row7]

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.

Well? DUH! Unless they have a profit sharing clause in their contract, when profits go UP the percentage paid to them is going to go DOWN because there is more money overall and they are getting paid the SAME as they were before!

In CONTRAST when profits go DOWN the percentage paid goes UP. When that happens I'm sure you will post about that instead of how crappy the economy is and how corperate profits are down...

[smeagol]

Business is evil!

Making money is bad!



Dan, are you sure you live in the right country?