Mr. Market Wakes Up to the Jobs and Wages Problem

[BDBoop]

Mr. Market Wakes Up to the Jobs and Wages Problem

All along, the fiction has been that rising corporate profits would translate to rising economic growth. The trouble is, there are many ways to get corporate profits up without actually helping the economy:

You can keep the dollar weak, which increases corporate profit margins for goods sold overseas.

You can lay off millions of employees, and move large amounts of work offshore.

You can increase overseas revenues, and hide the profits in offshore tax shelters.

You can focus on the top 30% or even the top 10% of consumers, ignoring the bottom 70-90%.

Large corporations have done all the above, while enjoying rock-bottom borrowing rates in the highly liquid corporate bond market, even as small businesses have been left out in the cold.

 

[CrusaderFrank]

"And I'm saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime." Steve Wynn, (Democrat) July 18, 2011

Read more: Wynn CEO Goes On Epic Anti-Obama Rant On Company Conference Call

 

[bitterlyclingin]

According to your post, BD, it sort of smells like its time for the wealth and income redistributors huddled over at 1600 Pennsylvania to come up with their 2011 version of an Undistributed Profits Tax. You have to suspect that number one White House visitor Richard Trumka, Andy Stern, and Michael Moore would be shouting some very strong vocal "Amens!", "Halleluliahs!" and "The Lord Has Finally Risens!" to any suggestions alluding to that.
The Government Giveth and the Government Taketh away.