Since 2009, 88 Percent Of Income Growth Went To Corporate Profits, 1% Went to Wages

[Political Junky]

Since 2009, 88 Percent Of Income Growth Went To Corporate Profits, Just One Percent Went To Wages | ThinkProgress

After the longest recession since WWII, many Americans are still struggling while S&P 500 corporations are sitting on $800 billion in cash and making massive profits. Now, economists from Northeastern University have released a study that finds our sluggish economic recovery has almost solely benefited corporations. According to the study:
“Between the second quarter of 2009 and the fourth quarter of 2010, real national income in the U.S. increased by $528 billion. Pre-tax corporate profits by themselves had increased by $464 billion while aggregate real wages and salaries rose by only $7 billion or only .1%. Over this six quarter period, corporate profits captured 88% of the growth in real national income while aggregate wages and salaries accounted for only slightly more than 1% of the growth in real national income. …The absence of any positive share of national income growth due to wages and salaries received by American workers during the current economic recovery is historically unprecedented.”
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[Oddball]

Where the hell do you think the money to pay wages comes from, you fucking dunce?

 

[Moonglow]

but we need more no tax paying billionairs

 

[rdean]

This is news that should thrill Republicans.

They think that the day Perry becomes president, business will pour two trillion dollars into the American economy and "create jobs". That's why I truly believe the right wing has become a party of fools with a fringe on top.

 

[boedicca]

Gee. If the Feds taxed every penny of this increase in profits generated between Q2-2009 and Q4-2010, that $464B would cover about three months of the Obama Deficits.

 

[boedicca]

I'll also note that $528B of Real Income Growth after the supposed end of a deep recession is incredibly Piss Poor.

It would behoove the OP to consider Why The Economy Is Not Growing (and creating jobs, increasing demand for labor, and resulting in the increases in wages that such demand drives).

 

[whitehall]

Since 2009, 88 Percent Of Income Growth Went To Corporate Profits, Just One Percent Went To Wages | ThinkProgress

After the longest recession since WWII, many Americans are still struggling while S&P 500 corporations are sitting on $800 billion in cash and making massive profits. Now, economists from Northeastern University have released a study that finds our sluggish economic recovery has almost solely benefited corporations. According to the study:
“Between the second quarter of 2009 and the fourth quarter of 2010, real national income in the U.S. increased by $528 billion. Pre-tax corporate profits by themselves had increased by $464 billion while aggregate real wages and salaries rose by only $7 billion or only .1%. Over this six quarter period, corporate profits captured 88% of the growth in real national income while aggregate wages and salaries accounted for only slightly more than 1% of the growth in real national income. …The absence of any positive share of national income growth due to wages and salaries received by American workers during the current economic recovery is historically unprecedented.”
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Corporations r Us. Ever wonder why the stock market doesn't sell produce? Because they sell wealth and stability. Every pension plan is invested in the Stock Market. It beats the hell out of the broken down robbed social security system administered by the government. Economists work for Northwestern U because they couldn't get a job flipping burgers. Their elist opinion is pure politics.

 

[Woyzeck]

Where the hell do you think the money to pay wages comes from, you fucking dunce?

Don't employee wages count as expense, and isn't profit the money you have left after you account for expenses?

 

[Disenchanted61]

Where the hell do you think the money to pay wages comes from, you fucking dunce?

I believe the point of this post is that "trickle down economics"
is a load of B.S.!!

 

[OODA_Loop]

trickle down is a bitch if you have no value or utility to gain earnings by

 

[AVG-JOE]

Since 2009, 88 Percent Of Income Growth Went To Corporate Profits, Just One Percent Went To Wages | ThinkProgress

After the longest recession since WWII, many Americans are still struggling while S&P 500 corporations are sitting on $800 billion in cash and making massive profits. Now, economists from Northeastern University have released a study that finds our sluggish economic recovery has almost solely benefited corporations. According to the study:
&#8220;Between the second quarter of 2009 and the fourth quarter of 2010, real national income in the U.S. increased by $528 billion. Pre-tax corporate profits by themselves had increased by $464 billion while aggregate real wages and salaries rose by only $7 billion or only .1%. Over this six quarter period, corporate profits captured 88% of the growth in real national income while aggregate wages and salaries accounted for only slightly more than 1% of the growth in real national income. &#8230;The absence of any positive share of national income growth due to wages and salaries received by American workers during the current economic recovery is historically unprecedented.&#8221;
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Does ANYONE benefit from 10% unemployment? I mean besides the 'job creators'?

High unemployment = no raises, no hiring bonuses and less competition.

It ain't rocket science... Follow the money.

 

[OODA_Loop]

business loves it when they dont have demand to drive the growth of their companies

 

[AVG-JOE]

Where the hell do you think the money to pay wages comes from, you fucking dunce?

I believe the point of this post is that "trickle down economics"
is a load of B.S.!!

Makes sense when you think about it in simple terms: One guy with a million bucks is still only going to need one car and one 'fridge. A thousand guys with $100,000 each are going to need a thousand cars and a thousand refrigerators.

Which scenario do you reckon will create more jobs? 'Trickle Down' is a scam.

 

[AVG-JOE]

Gee. If the Feds taxed every penny of this increase in profits generated between Q2-2009 and Q4-2010, that $464B would cover about three months of the Obama Deficits.

It's not about higher taxes now any more than it was about lower taxes back in 2003.

It's about fair taxes.

Simple taxes = Fair taxes.

The time to end the corruption spawned by congress stepping outside the constitution to levy taxes on you differently than they way they do me is now.

Fair taxes, a budget balanced by law and then build an economy that will carry your children to the stars.

It ain't rocket science.

 

[Wiseacre]

There's no upward pressure on wages, no surprise that there's almost no income growth there. Companies pared down expenses to maximize profits, no surprise there either. Would you feel better if they were less profitable?

 

[Toddsterpatriot]

Since 2009, 88 Percent Of Income Growth Went To Corporate Profits, Just One Percent Went To Wages | ThinkProgress

After the longest recession since WWII, many Americans are still struggling while S&P 500 corporations are sitting on $800 billion in cash and making massive profits. Now, economists from Northeastern University have released a study that finds our sluggish economic recovery has almost solely benefited corporations. According to the study:
“Between the second quarter of 2009 and the fourth quarter of 2010, real national income in the U.S. increased by $528 billion. Pre-tax corporate profits by themselves had increased by $464 billion while aggregate real wages and salaries rose by only $7 billion or only .1%. Over this six quarter period, corporate profits captured 88% of the growth in real national income while aggregate wages and salaries accounted for only slightly more than 1% of the growth in real national income. …The absence of any positive share of national income growth due to wages and salaries received by American workers during the current economic recovery is historically unprecedented.”
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How much of 2008 real national income went to wages?
How much to corporate profits?
Please let me know the precise mix in the future that would satisfy the left.

 

[CrusaderFrank]

Maybe corporations will be more upbeat once when we have an Administration that does not fuck over Senior Secured creditors to turn car companies over to the UAW?

 

[8537]

Where the hell do you think the money to pay wages comes from, you fucking dunce?

apparently not from corporate profits, you fucking dunce.

 

[ladyliberal]

All else equal, corporate revenues are good for everyone. However, very high profit rates can suggest a monopoly, which is bad for consumers and workers, and only good for the monopolist. Clearly, that doesn't explain what's happening here, though. Part of the reason is probably simply that wages are a lagging indicator. Part of the reason is also probably that our current policies are more pro-corporate than they have been in the past. I think we could safely shift things around, say by increasing taxes that corporations pay on profit while reducing payroll taxes. That would help workers and hurt stockholders.

And yes, corporate profits do go to people (as opposed to vanishing into the ether). However, they do so in a very regressive way-- stock in companies is much more likely to be held by the wealthy than are other forms of wealth. Changing policy would have implications for the total amount of wealth (I think we could increase it, but no doubt others disagree) but it could also shift wealth to where it would do more good.

 

[Toddsterpatriot]

Where the hell do you think the money to pay wages comes from, you fucking dunce?

I believe the point of this post is that "trickle down economics"
is a load of B.S.!!

Makes sense when you think about it in simple terms: One guy with a million bucks is still only going to need one car and one 'fridge. A thousand guys with $100,000 each are going to need a thousand cars and a thousand refrigerators.

Which scenario do you reckon will create more jobs? 'Trickle Down' is a scam.

A thousand guys with $100,000 each is $100 million. Of course that much income produces more demand than total income of $1 million.

I guess Obama could raise taxes to try and increase jobs. It's obvious his wasteful deficit spending didn't work.