US corporations flush with profits

[DanS]

Think back to 1997, Zkribbler. Those profits set the stage for 3 years of golden times for the economy. The low profits of 2000 heralded the 2001 recession.

High profits are indications of good times ahead.

[Imran Siddiqui]

Originally posted by pchang
Syas the guy who recently had to choose between 2 jobs.....

[Ogie Oglethorpe]

Originally posted by pchang


Syas the guy who recently had to choose between 2 jobs.....

Ouch or should I say double ouch.

[Odin]

Originally posted by DanS
The profits are going to the owners, which means anybody with a 401(k), pension plan, or stocks.

Ah, yes, Walmart and McDonalds employees are getting so much money from thier non-existant investments.

The concept that corporate profits tricle down is a proven lie, yet neo-liberal economists keep up thier delusions, they are as bad as the creationists. Minimum wages and other regulations are to prevent companies from increasing profits at the expense of thier employees.

[Zkribbler]

Originally posted by DanS
Think back to 1997, Zkribbler. Those profits set the stage for 3 years of golden times for the economy. The low profits of 2000 heralded the 2001 recession.

High profits are indications of good times ahead.

Times may be golden for the economic on average, but the wealth is being syphoned off by the top 1%.

Since the last 70's, the stardard of living for the average working guy (i.e. not college educated; not blue collar) and either drifted downward or remained static ... with the exception of a few years towards the end of the Clinton adminstration.

Millionaires didn't become millionaires by sharing.

If it hasn't happened in the last 1/3 of a century, it's not going to start happening now.

[David Floyd]

Corporate profits

[Zkribbler]

Corporate profits: good.
Corporate profits with rising salaries and better benefits for the employees: better

[David Floyd]

I happen to agree that using high profitability to reward employees with things such as incentive plans and higher pay is an excellent motivator. I prefer the "carrot and stick" approach - if you don't do your job and are unproductive, you'll be fired, but if you perform exceptionally well, you'll be rewarded.

[DaShi]

Whoohoo! Richer executives!

[Dinner]

Originally posted by pchang

Syas the guy who recently had to choose between 2 jobs.....

Hasn't that been the theme for the last 5-6 years? John Kerry's two Americas. The 1/3 who are college educated and have marketable skills and the other 2/3 who aren't and who have been watching their standard of living fall.

[Ted Striker]

Originally posted by Zkribbler


Times may be golden for the economic on average, but the wealth is being syphoned off by the top 1%.

Since the last 70's, the stardard of living for the average working guy (i.e. not college educated; not blue collar) and either drifted downward or remained static ... with the exception of a few years towards the end of the Clinton adminstration.

Millionaires didn't become millionaires by sharing.

If it hasn't happened in the last 1/3 of a century, it's not going to start happening now.

QFT

[MrFun]

DanS, shame on you -- you forgot to include your trademark phrase, "let the good times roll" in part of your thread title.

[Dr Strangelove]

That is so sick. Did you know that I am forced to flush with mere water? That makes me so mad. I deserve to floush profits too!

[Edan]

Re: US corporations flush with profits

Originally posted by DanS
Why should we care about corporate profitability? Among other things it demonstrates that our companies by and large are very healthy. This is good news for ordinary workers because it indicates that hefty raises and hiring are around the corner.

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.
"It's a big puzzle," said Josh Bivens, an economist for the Economic Policy Institute. "If this is a knowledge economy, how come the brains aren't being compensated? Instead, the owners of physical capital are getting the rewards."

While profits are up 21.3% in the past year, labor compensation is up just 5.5%. After adjusting for inflation, population growth and taxes, real disposable per capita incomes are up just 0.5% in the past year.

link

I wonder if one of the reason profits are up so high is because labor costs hasn't risen up very much?

[chequita guevara]

Originally posted by DanS
The profits are going to the owners, which means anybody with a 401(k), pension plan, or stocks.

It largely goes to 10% of the population, with another 47% or so getting some crumbs. The average person's investment in the stockmarket is very small.

Bascially this is a chart of how much the American people are being fleeced.