The Wageless (but) Profitable Recovery

out of the NYTimes, June 30

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.

The share of income growth going to employee compensation was far lower than in the four other economic recoveries that have occurred over the last three decades, the study found.

If President Obama is such a “radical socialist, far-leftist with Kenyan anti-colonial ideals” … why then are corporations showing great profit growth while workers, you know those silly petite bourgeoisie and proletariat types, are not benefiting from the presence of a “hard core Marxist” in the White House?

Not surprising the President comes across a bit frustrated some days. There he is, promoting policies that in the past would have come from the moderate wing of the Republican Party and the tea baggers (yeah I know – petty insult but they are petty in their whinging, so why not?) and the radical right still see him as some far left ideologue…. Is his race part of the problem?


One response to “The Wageless (but) Profitable Recovery

  1. Pingback: The Wageless (but) Profitable Recovery (via Somer's Place) « patfestino

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