Just in time for the Republican convention . . . may the Gulf hurricane take a hard right into Tampa next week! . . . we have this cheery news. Cheery for corporations in this land of the free and home of the brave.
1) Corporate profit margins just hit an all-time high.
Companies are making more per dollar of sales than they ever have
before. (And some people are still saying that companies are suffering
from "too much regulation" and "too many taxes." Maybe little companies
are, but big ones certainly aren't).
Not so cheery if you're a working stiff. 2) Fewer Americans are working than at any time in the past three decades. One reason corporations are so profitable is that they don't employ as many Americans as they used to.
And really no surprise given the unemployment situation. 3) Wages as a percent of the economy are at an all-time low.
This is both cause and effect. One reason companies are so profitable
is that they're paying employees less than they ever have as a share of
GDP. And that, in turn, is one reason the economy is so weak: Those
"wages" are other companies' revenue.