Whose Recovery? 88% of Post-Recovery Income Growth Has Gone to Corporations, Just 1% to Workers

[marmar]

New Deal 2.0 via AlterNet:



Whose Recovery Is It? 88% of Post-Recovery Income Growth Has Gone to Corporations, Just 1% to Workers


This week’s credit check: Corporate profits have taken in 88% of the raise in national income since the recovery began, while household incomes only took in 1%.

Whether or not this feels like a recovery, we’re technically in one. And it’s true that some money is flowing again. But where exactly is that money going? Not necessarily to those who need it.

It’s going to corporations. The recovery began in the second quarter of 2009, and between then and the fourth quarter of 2010 national income rose by $528 billion — and $464 billion of that, or 88%, went to pretax corporate profits, according to economists at Northeastern University. In fact, corporate profits have been growing quite rapidly in the post-crash period. The NYTimes reported in November of 2010, “Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history.” In the third quarter of 2010, they grew at an annual rate of $1.659 trillion, the highest figure recorded in noninflation-adjusted terms.

It’s going to the pocketbooks of the richest of the rich. The Guardian reports: “The globe’s richest have now recouped the losses they suffered after the 2008 banking crisis. They are richer than ever, and there are more of them — nearly 11 million — than before the recession struck.” According to the annual world wealth report by Merrill Lynch and Capgemini, the wealth of high net worth individuals — those who have more than $1 million in free cash — rose nearly 10% last year and surpassed 2007’s peak of $40.7 trillion, topping out at $42.7 trillion. It was even better for “ultra-high net worth individuals,” those with $30 million to spare, as their numbers surged by 10% and the total value of their investments rose by 11.5% to $15 trillion. .........(more)

The complete piece is at: http://www.alternet.org/newsandviews/article/630895/whose_recovery_is_it_88_of_post-recovery_income_growth_has_gone_to_corporations%2C_just_1_to_workers/

[Starry Messenger]

1. And you'll take your Social Security cuts and you'll like them proles!

[daleanime]

4. "Thank You Sir, May I Have Another?"

:spank: :spank: :spank: :spank: :spank: :spank:








Is this really nescessary?:sarcasm:

[Starry Messenger]

7. I don't know why this story doesn't spawn more outrage.

We're being skint to the bone, and the wealthy are raking it in. Class war has never been more obvious in this country. And now they are turning us over and shaking us for loose change. :(

[daleanime]

9. I agree....

should be subject #1.:banghead:

[katnapped]

2. Only 88%?!?

Sheesh, we at Big Corp Amerikkka will be needing the other 12% too. What kind of socialist place do you think this is?!?

[ThomWV]

3. Now's when its supposed to start trickelin' down - watch it start rainin' down jobs any minute now.

[lonestarnot]

5. Yes, jobs, no-wage prison industrial complex jobs picking peaches in GA.

[somone]

6. Proof that more corporate tax cuts are needed

They're urgently and desperately needed to instill corporate "confidence"

[LondonReign2]

8. Where did the other 11% go?

I've scanned the original findings from Northwestern, and I don't see where the other 11% of gain have gone. Where did those go?

What is so frustrating is Obama's complete inability to take information such as this and drive the national discussion. Instead of beating the Repubs' heads in with this-- and rallying the 70% who polls have shown care about such issues-- he continues to play by the Republicans rules in some delusional gambit that he'll somehow sway the 30%. "Don't like $2T in cuts? How about $4T?? pretty please?"

He could use this single study to absolutely demand no cuts to corporate taxes AND a closing of loopholes...instead he seems to think that 1% gain for workers is where we need to focus the cuts. I didn't vote for this fucking shit. If he wanted to govern as a Republican he should have said so when running for office and saved us all the time and effort.

[progressoid]

10. I think a feel a trickle!