Workers’ share of national income plummets to record low while Corporate profits at record high

Workers’ share of national income plummets to record low

Check out the chart below, compiled by the Labor Department, and posted this week by conservative writer David Frum. It shows that the decline began with the brief recession that followed 9/11 in 2001. But it continued even as the economy picked up again, and got even worse once the Great Recession hit. In the weak recovery since then, workers' share of income just kept on falling.

You will notice that the decline started after 1980 and continued that downward pattern until the mid nineties where our incomes upticked....and then...BOOOM.

[atsimg]http://files.abovetopsecret.com/images/member/6abf1fa8cc5f.jpg[/atsimg]

Why are workers taking home such a reduced share of the pie? Opinions differ, but many experts think that the trend has to do with a number of factors, including a decline in the bargaining power of labor, and increased competition from foreign workers.

Similarly, over the last year or so, U.S. companies have made record profits, while unemployment has stayed high and wages have barely risen. The chart jibes with other data, which show that since the 1980s, income for the richest 1 percent of Americans has exploded, while hardly budging at all for everyone else.

Still, there's little sense that either Obama administration or Congress plan to do much about this growing inequality. Indeed, any serious action to boost the economy and cut unemployment now seems to be off the table.

news.yahoo.com...

And now...after looking at that information...let's look at this:

After-Tax Profits Reach Record High in Q1

Corporate profits after tax (unadjusted) reached a new record high in the first quarter of 2011 of almost $1.5 trillion. After adjustments for inventory and depreciation, after-tax corporate profits in the first quarter dipped slightly from the all-time high in the last quarter of 2010, but remained above the pre-recession peak levels of 2006 for the second consecutive month, both in nominal and real terms (see chart above). It was the seventh consecutive quarterly increase in real profits from their year-earlier level following ten straight quarters of annual declines starting in 2007, and suggests that corporate profitability has completed recovered from the effects of the 2007-2009 recession. Read more: www.benzinga.com...

www.benzinga.com...

Well....it's looking pretty bleak. Most people's wages aren't keeping up with inflation. No one is hiring anyone at a time where wall street is bringing in record profits while at the same time our government has ran up massive deficits.

And what looks like is going to happen? not what should happen. Instead they cut programs that help those who are struggling or on the verge of going under.

I don't know how long we can continue on this path without some serious consequences. If the majority of people in this country have nothing to spend, it's all over.

I really don't know what to think anymore. Why spend so much time complaining about these things when it doesn't seem to matter anyway?

Republicans say we need to cut taxes to boost the economy...while at the same time complaining that 40 percent aren't paying income taxes.....so how is more tax cuts going to do anything but continue more of the same. There is still no job creation even with the wealth stacked at the top.

If they are unwilling to hire and pay people good wages....how can anyone expect the economy to recover? It's not. They won't pay taxes and they won't hire anyone. They are simply hoarding all the money.

reply to post by David9176


I've been unemployed now for three months, Haven't recieved one interview. Could be I'm to old, who knows. I invested well prior to my retirement and have my own life insurance and medical. I'm not looking to make big bucks. I just want to be productive.

reply to post by TDawgRex

I've been unemployed now for three months, Haven't recieved one interview. Could be I'm to old, who knows. I invested well prior to my retirement and have my own life insurance and medical. I'm not looking to make big bucks. I just want to be productive.

Hope things work out for you. It's really bad in my state (Michigan). I live near a large city..the employment section in the newspaper is ONE PAGE. Years ago it was nearly 10 pages. The jobs are simply gone. All the factories are gone....and if anyone is hiring...it's either for minimum wage or a college required job.

I have been lucky and have been able to keep working...but I know that so many aren't. I've been unemployed before...for about 3 months a few years ago before the recession actually hit.

reply to post by David9176


Just as bad in Ohio. I can't even find a job cutting grass..and I like cutting grass. I have a couple of ideas to start my own business, but I don't want to throw money in the wind. Just doing my research first.

I was unemployed (after being deployed) for two years back in 05-06. Used up a lot of my investments back then, but it kept me going at least. I'd be living large if I hadn't gone through that. Oh well, neither here nor there, it is what it is. Gotta keep moving on.

Best of luck to you as well.

Without barging power it's take it or leave it and the companies know this. Why do you think they are trying to break unions everywhere. But don't worry if we keep up with the tax cuts the trickle down will start to work in a couple of decades.

reply to post by buster2010


While I understand the need for unions, in some cases. I do not like in the least the current union leadership which eventually breaks companies. They have become what they once fought against.

My microeconomics class is covering outsourcing this week. Touting the great thing Americans enjoy for less money because of outsourcing and how it actually increases the job market here??!! I think this class is going to be very difficult for me to swallow, and it goes against all I beleive. And there isn't any discussions or debates on our texts. This is the very first class that hasn't had open debate, hmmmm, methinks this stinkith to high heaveneth!!!! They just want us to be good sheeple.

reply to post by ldyserenity


I look forward to your observations. I was kicked out of a world history class because I disagreed with the guest lecturer, (who had stated early on that he had never left the state). Voices weren’t raised but I was told that I humiliated the guy by pointing out flaws in his lecture. I, myself, didn't think I said anything humiliating. This was a small university outside Ft. Bragg in a class filled with vets. So, yea, upon reflection, I may have instigated.

At least I got my money back.

reply to post by TDawgRex

While I understand the need for unions, in some cases. I do not like in the least the current union leadership which eventually breaks companies. They have become what they once fought against.

The unions are weak and headed for extinction. They have been in decline since Reagan...soon they will all be gone.

After watching the Republican debates last night, and the competition Obama is going to have....it's gonig to be more of the same.

Republicans are all about free trade...and apparently Obama is as well as he's pushing free trade agreements with 3 more countries which makes ABSOLUTELY NO FRICKIN SENSE WHATSOEVER.

I remember him stating during his campaign that he was against NAFTA....he even tried to put a "buy American" clause in the stimulus bill if I remember correctly but it was shot down by Republicans.

He seems to have pulled a 180 on that issue...amongst many others.

Seems to me that those graphs represent corporate outsourcing. Call most US companies and you'll be talking to an Indian you can barely understand. Jobs outsourced, less workers, more corporate profits, of course those are the graphs you would expect. Just one more way we're getting screwed, nothing will change without a revolt.

reply to post by Observer99

Seems to me that those graphs represent corporate outsourcing. Call most US companies and you'll be talking to an Indian you can barely understand. Jobs outsourced, less workers, more corporate profits, of course those are the graphs you would expect.

Absolutely. It doesn't get any more obvious than that. What's worse, these same companies that conduct most operations in other countries are still controlling our government....and people wonder why neither party seems to do anything to stop the bleeding.

reply to post by TDawgRex


Not sure if you being old is the problem, I'm young, and skilled (at least in the jobs I'm applying for) and I have been unemployed for about a year now. I have had THREE interviews the ENTIRE time. Three. I've probably put in thousands upon thousands of applications. I'm running out of places to apply to.... I've gone so far as to apply to all of the stores around here. Fred Myer (I think it's called Kroger in other places) Safeway, Walmart, Walgreens, etc. NOTHING. Not a single call for those places.

I think we have reached a point where even being the ideal applicant can't get an interview. Because there are 100 ideal applicants applying for the same job.

In the past, when I was out of work, I would apply to 4-5 places, and get 2-3 interviews, and a few job offers. Now with thousands of applications, 3 interviews, zero job offers. Something is seriously wrong with this country.

Yet there are still those out there that believe in trickle down economics. What a bunch of bull. The upper class are richer than they have every been, yet we have the least amount of jobs than pretty much any other time in the past. We probably aren't as bad as the "great" depression in NUMBER of jobs available per person, but I'd really wonder about the QUALITY of jobs now being even WORSE than it was during the "great" depression.

And now you have awful employers refusing to hire people who are unemployed. What kind of chit is that?

If this goes on much longer, I am leaving this country. Sorry America, I tried. You have made it so that I cannot get by anymore. I have relatives that live up in Canada, and they always BEG me to come work for them, live with them until I get myself set-up there. I have not looked into it much, but they told me that it would be extremely easy for me to move there legally since I would already have a job lined up, family living there already, etc.

reply to post by James1982


Well, good luck to you. I have a buddy in Belize that wants me to go there to help run his fishing boat. I'm a former Army Soldier, what do I know about boats?, other than they sink at inopportune times.

I'm looking into his business as my gut feeling tells me that this could lead to no good. Besides, I sweat like a pig.

Eventually something is going to have to give. I fear the thought of class warfare in this country. But it continues to look like more of a reality all the time. Sooner than later something is going to have to give, I just hope it isnt the backs of the American worker.

reply to post by David9176


Great thread David! I wanted to add another graph because I think it is a good supplement to your argument.

Many people will rail against unions and talk about how greedy and lazy they are. And while I do not believe unions are perfect by any means, neither are corporations. We need unions to stand up for the people and ensure we have some kind of protection against corporate hegemony.

Anyway, here's a pretty interesting graph that overlays union membership with middle class income.

[atsimg]http://files.abovetopsecret.com/images/member/112dfb98f05f.jpg[/atsimg]

Once you see this graph, you know why the corporate nobility of the US wants to crush the union movement. Unions ensure that lower and middle class people get paid a fair rate. Take away the union, and you take away the hard earned wealth of the people.

Nothing new really, the greater trend is at least 50 years old. The trend has accelerated sharply since the 80's and obviously once again since 2001 and 2008.

IMO, the segregation of wealth is the inevitable outcome of any freemarket system. Made even worse by the ever increasing corporate stewardship practiced by our government.

It's closing in on epidemic proportions now and the results of hoarding wealth for the few at the expense of the many are more and more apparent each day.

Earth to greedy slobs.. Your system doesn't work if no one but you can buy!

reply to post by Avenginggecko


Thanks for adding...and I agree. Now that public unions are under attack...that number will shrink even more. Absolutely agree that the decline of the middle class and wages goes hand in hand with the the decline of unions.

We are still going in that direction and it doesn't look like it's going to end any time soon.