The Wageless, Profitable Recovery

[cory777]

Source: New York Times

Economists at Northeastern University have found that the current economic recovery in the United States has been unusually skewed in favor of corporate profits and against increased wages for workers.

In their newly released study, the Northeastern economists found that since the recovery began in June 2009 following a deep 18-month recession, “corporate profits captured 88 percent of the growth in real national income while aggregate wages and salaries accounted for only slightly more than 1 percent” of that growth.

The study, “The ‘Jobless and Wageless Recovery’ From the Great Recession of 2007-2009,” said it was “unprecedented” for American workers to receive such a tiny share of national income growth during a recovery.

According to the study, between the second quarter of 2009, when the recovery began, and the fourth quarter of 2010, national income rose by $528 billion, with $464 billion of that growth going to pretax corporate profits, while just $7 billion went to aggregate wages and salaries, after accounting for inflation.


Read more: http://economix.blogs.nytimes.com/2011/06/30/the-wageless-profitable-recovery/

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News that Matters http://activistnews.blogspot.com/

[izquierdista]

1. 7 divide by 528

Hmmmm, like 1.32%.... There's going to be hell to pay in Republican land over this. How did that extra 0.32% get away from the top 1%???

[locahungaria]

2. Words escape me.....

:mad: :grr: :nuke:

K&R.

[erickregger]

3. This is precisely why the economy crashed to begin with.

And so long as this continues the economy will not recover. I'm not expecting a double dip. I'm expecting the other shoe to drop any day now.

Until Washington figures out a way to put more money in the pockets of Main Street instead of Wall Street we will be up poop creek without a paddle.

[Hotler]

16. Do not be shy say it. Shit Creek. eom.

[OhioChick]

4. Rec n/t

[Javaman]

5. In other news: water is wet. nt

[HughBeaumont]

6. It's been this way for a decade and some change.

Corporations cut us off around about Clinton's exodus. That's when they cashed in their ill-gotten public loot and this is their end game. 1999 was as good as it was going to get. I expect wages to flatline in real dollars; I suspect they already are trending that way.

In fact, when you think about it (and I believe someone mentioned this before), aside from speculative bubble after speculative bubble that's been part and parcel responsible for much of the growth these past three decades, this economy hasn't had real strength since industry and manufacturing left our shores in the 70s. When you send the jobs people are supposed to be replacing THOSE fields with overseas, you have a whale of a problem that can only be cured dangerously.

[ixion]

7. The Cognitive Dissonanace comes from calling a depression a 'recovery'

as well as the fact that the depression was created specifically to invoke just this type of scenario.

[Hydra]

12. In other words:

"Mission Accomplished"

[fascisthunter]

8. So this is what we should get used to

things are going to get a lot worse, because we are going in the wrong direction.

[Octafish]

9. Greed wins.

Details not at 11.

[TomClash]

10. And that's precisely why . . .

. . . the recovery sucks. NOT ENOUGH AGGREGATE DEMAND!!!!

[defendandprotect]

11. Obama is letting this fester -- same with Bernanke/Fed -- Where's Congress?

It is Congress which should be setting our economic policy -- full employment!

People who we elect and whom we can fire --

not a private bank!

We should be demanding that Congress once again take over this responsibility --

and get the Fed out of it!!

[AndyTiedye]

13. Repiglickins in Congress Blocked Obamas Job Creation Initiatives

They have been trying to sabotage the economy ever since Obama took office.

[defendandprotect]

14. Hey -- We had the presidency, the House and Senate up to last year ...

and Obama did the least he could to stimulate the economy -- and

then even "compromised" on that --

Obama has been one long parade of moving the GOP agenda --

from back room deals with Big Pharma and Private H/C industry to

pushing oil drilling -- how'd that work out for you and the planet? -- to

pushing "clean coal" -- :puke:

Obama had every chance to rescue this economy and what he chose to do was

sponsor and support Wall Street and the criminals who caused the financial coup.

Unfortunately for your argument, Obama has been knocking the hell out of

democratic ideals/New Deal since the day after the election -- while resurrecting

the GOP from the ashes.


"You can't wake up a man who is pretending to be asleep" --

[AndyTiedye]

15. We Didn't Have ENOUGH of the Senate The Jobs Bills Died There

The Repigs obstructed everything, knowing full well that they would suffer no consequences for doing so,
because the media and even a lot of people here on DU would blame it all on Obama.

It was the "Citizens United" decision that really revived the GOP. Unlimited funding has a way of doing that.

[defendandprotect]

17. But now the GOP has "enough of the Senate" to terrorize Obama and Dems?

:rofl: :rofl:

No -- Obama resurrected the GOP -- immediately after the election --

Otherwise, what excuse could he have had for not passing universal health care?


Yes -- the GOP is omnipotent --

and the Dems are simply as impotent as they come --

:rofl:


Bye --

[AndyTiedye]

18. Cough, LIEberman (D?, Insurance Industry), Cough

Otherwise, what excuse could he have had for not passing universal health care?

LIEberman sided with the Repiglickins, so we didn't have the votes to break the Repiglickin filibuster.

[defendandprotect]

20. The Liebermann joke? The all powerful and mighty Liebermann .. ?

Liebermann was nothing but cover for what was going on.

Liebermann was omnipotent -- and Obama and Dems were impotent before him?

A Superman of sorts -- cough ...


:rofl:




If you truly beleive any of that, may I be the first to recommend that you

have your BS meter check --

[AndyTiedye]

22. Without LIEberman, We Didn't Have Enough Votes for Cloture

Without enough votes for cloture, the Repiglickin filibuster was unbreakable.

You seem really determined to convince us that Obama is no good, that he is a sell-out, etc.
What sort of outcome are you hoping for?

[4dsc]

19. more conservative economics for ya

What did anyone else expect?

[unkachuck]

21. "...corporate profits captured 88 percent of the growth in real national income..."

....our country has money....we can afford to pay our bills....we need to stop bleeding resources from the middle-class and poor and make the rich pay their patriotic fair share....

....any patriotic rich prick who wants to celebrate the 4th in a strong, healthy America, would agree....