BDBoop
Platinum Member
- Banned
- #1
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.