Obamanomics: Corporate Profits Up 68%, Wages Fall 5%

Investor's Business Daily ^ | 11/22/2011 | John Merline

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According to an IBD review of various economic data, while corporations and Wall Street investors have made significant gains under Obama's economic leadership, average Americans have seen their fortunes steadily decline.

Since the start of the Obama administration, corporate profits have climbed 68%, and are now 19% above their pre-recession peak, according to the latest Commerce Department data out Tuesday morning.

[cuban leaf]

Big companies surge. Small companies collapse. The plan is a world where everyone works either for big government or big business.

Then nobody has rights beyond what the government/company conglomerate grant.

e.g. you have freedom of religion, but in “corporate” America the company may be sued if you exercise that right on company time, so it is strictly prohibited.

etc.

You cannot control people who control their own destiny, but you can easily control employees, even at the highest levels. Someone said the US it working towards being the first “dictatorship” in history without an actual dictator.

[HiTech RedNeck]

Which might be why the #Occupithers are so envious, but a curious cat wants to know if this average calculation counts the instances of zero or negative profits of businesses that went bust?

[sanjuanbob]

I view this as a good sign. If the trend continues, employees will see future higher wages and small businesses will start to re-open, hoping to capitalize on residual markets. It’s all whether you’re a half full or half empty glass person.

[Eagle of Liberty]

Yep. We have been in a move toward Fascism for a while now.

[Tzimisce]

Using Marx’s ideas to help the middle class, is like using Hitler’s ideas to help the Jews.

[algernonpj]

The GDP using a deflator that reflects the cost of a set standard of living, not the cost of a declining standard of living:

[scooby321]

I guess Reagan was right a rising tide lift all boats.

[Eagle of Liberty]

Meanwhile, companies are sitting on a pile of cash that's grown 38% from Q1 2009 to Q2 2011, according to the Federal Reserve's quarterly "Flow of Funds" report.

IMO, businesses across this country are staging their own BOYCOTT OF OBAMA because they are tired of his agenda and are tired of getting treated like children. They are holding back their money hoping for a change in Nov 2012. Yes, we all suffer while they hold this boycott, but if it means Obama is out in a little over a year, I am all for it.

[JustSayNoToNannies]

Wages Fall 5%

After rising as much after the election. The bigger picture is that there's been no trickle-down for at least a decade:

[griswold3]

Top Down Central Planning is easier with Corporatism. As in people in large groups being controlled rather than trying to heard millions of cats. (like 6 million small buisinesses)
In the past, government need only threaten a few businesses (Gibson, Boeing) for the others to get the ‘message’.
‘Nice little place you got hear. It’s be a shame if something happened to it. You know what I mean?’ -BigGovernment.

[HIDEK6]

Improved productivity leads to fewer workers at a given company.

An oversupply of labor leads to lower prices for it.

This is very simple.

[Vanders9]

You cannot control people who control their own destiny, but you can easily control employees, even at the highest levels. Someone said the US it working towards being the first “dictatorship” in history without an actual dictator.

It's your own fault. You have too many lawyers.

[griswold3]

No, that was NOT Reagan.
It was JFKennedy.

[griswold3]

Should we start worrying about the ‘paradox of thrift’ now?

[Vanders9]

I'm not so sure. If big business gets into bed with big government, how can small business survive? Big business is perfectly happy to support laws on, say, minimum wages, or extensive health & safety legislation, or tortuous regulations. Such things are a burden on them, but they know they are a much bigger burden on their smaller competitors, because smaller companies work on smaller profit margins. The small companies therefore get driven out of business and the large companies therefore have a monopoly, with all that implies.

It is not really surprising that Wall Street and big blue chip companies are such huge donors to the Democrat party.

[HIDEK6]

Please elaborate.

[cuban leaf]

—It’s your own fault. You have too many lawyers.—

Tell me about it.

[griswold3]

Businesses have used their energy towards a more efficient, more productive model to get through the rough patches. Will this become a trend?
RAther than going ‘Galt’ like some of my friends, we went into ‘slow roll’. In the past, I believed that you ‘grew’ your business or it soon died. We’re doing well, now, but only because we could fill the void of other less thrifty businesses. We’re doing alot less ‘thinking outside the box’ for innovation and marketing. I could get stuck in this rutt. imo.

[mjp]

average money wage rates = demand for labor/supply of labor.

The way for the supply of labor to grow is for wage rates to fall. Also, higher profits make it possible for businesses to increase their demand for labor which also helps to increase the supply of labor.These are the principles of a free society. If they are not producing an increase in the supply of labor, it means their is too much government intervention in the economy.