Margins Widen at U.S. Companies {as wages lag}

[xchrom]

http://www.bloomberg.com/news/2012-02-21/margins-widen-at-u-s-companies-as-wage-growth-lags-behind-prices-economy.html

Companies are improving margins and generating profits as wage growth for the American worker lags behind the prices of goods and services.

The year-over-year change in the so-called core consumer price index, which excludes volatile food and fuel, has outpaced hourly earnings for the last four months. In January, average hourly earnings climbed 1.5 percent from a year earlier, while core inflation was up 2.3 percent.

“A lot of the outperformance of profits has been due to the fact that margins are expanding,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. “Firms have been able to keep prices intact even though labor costs have been declining.”

While benefiting the bottom line for businesses, the decline in inflation-adjusted wages bodes ill for the sustainability of economic growth as consumers may eventually be forced to cut back, Feroli said. Businesses have also been slow to redeploy their profits into new hiring.

[Initech]

1. These assholes lust for profit the way Gollem lusts after his precious.

And theyll screw over anyone and anything to get it.

[rfranklin]

2. The workers of America need to get some power back...

while corporatists and billionaires like the Koch brothers are trying to nail the coffin shut on the dying labor movement we need to resurrect them. It's been a downhill slide for unions and for all employees since Reagan fired the first shots in the war against unions. Up until now, the unions have been getting slaughtered.

[Vincardog]

3. That is why we have to oppose Corporatists in both parties.

[Wellstone ruled]

4. Wall Street wanted this.

Chamber of Congress said a couple of years ago or so,workers should take a 20% wage haircut. Well,that has happened.