LJ_Reloaded
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Workers' income dips to below 50% of national income. AJ says: "WORK FOR FREEEEEE!"
As Corporate Profits Rise, Workers’ Income Declines
http://www.nytimes.com/2011/08/06/b...ng-corporate-profits-off-the-charts.html?_r=2
As Corporate Profits Rise, Workers’ Income Declines
By FLOYD NORRIS
Published: August 5, 2011
THESE are the worst of times for workers, and the best of times for companies. At least that is one way to read the newly revised national economic statistics.
The Commerce Department last week reduced its estimates of economic growth in 2010 and early 2011. At the same time, it said corporate income was much better than it had thought. Using newly available data from 2009 corporate tax returns, the department raised its estimates of corporate profits by 8.3 percent for 2009 and 10.8 percent for 2010.
The new figures indicate that corporate profits accounted for 14 percent of the total national income in 2010, the highest proportion ever recorded. The previous peak, of 13.6 percent, was set in 1942 when the need for war materials filled the order books of companies at the same time as the government imposed wage and price controls, holding down the costs companies had to pay.
In the first quarter of 2011, the latest figures available, the new estimates indicate corporate profits accounted for 14.2 percent of national income, well above the 13.1 percent that had previously been estimated.
The news is not so good for smaller enterprises. The government category for many such businesses, known as proprietors and partnerships, is based on the type of tax returns filed, and is not completely accurate because some large enterprises file partnership tax returns while some smaller ones file as corporations. But it is generally used as a proxy for small business.
The latest figures indicate the smaller businesses’ share of national income fell to a 17-year low of 7.7 percent in 2009, but recovered to 8.3 percent in 2010 and in the first quarter of this year.
Employees have always received more than half the total national income, until now. In 2010, the percentage of national income devoted to wages and salaries fell to 49.9 percent, and it slipped a little more to 49.6 percent in the first quarter of this year. That continued decline may help explain the economic worries of many Americans who have jobs but still fear they are falling behind.
As Corporate Profits Rise, Workers’ Income Declines
http://www.nytimes.com/2011/08/06/b...ng-corporate-profits-off-the-charts.html?_r=2
As Corporate Profits Rise, Workers’ Income Declines
By FLOYD NORRIS
Published: August 5, 2011
THESE are the worst of times for workers, and the best of times for companies. At least that is one way to read the newly revised national economic statistics.
The Commerce Department last week reduced its estimates of economic growth in 2010 and early 2011. At the same time, it said corporate income was much better than it had thought. Using newly available data from 2009 corporate tax returns, the department raised its estimates of corporate profits by 8.3 percent for 2009 and 10.8 percent for 2010.
The new figures indicate that corporate profits accounted for 14 percent of the total national income in 2010, the highest proportion ever recorded. The previous peak, of 13.6 percent, was set in 1942 when the need for war materials filled the order books of companies at the same time as the government imposed wage and price controls, holding down the costs companies had to pay.
In the first quarter of 2011, the latest figures available, the new estimates indicate corporate profits accounted for 14.2 percent of national income, well above the 13.1 percent that had previously been estimated.
The news is not so good for smaller enterprises. The government category for many such businesses, known as proprietors and partnerships, is based on the type of tax returns filed, and is not completely accurate because some large enterprises file partnership tax returns while some smaller ones file as corporations. But it is generally used as a proxy for small business.
The latest figures indicate the smaller businesses’ share of national income fell to a 17-year low of 7.7 percent in 2009, but recovered to 8.3 percent in 2010 and in the first quarter of this year.
Employees have always received more than half the total national income, until now. In 2010, the percentage of national income devoted to wages and salaries fell to 49.9 percent, and it slipped a little more to 49.6 percent in the first quarter of this year. That continued decline may help explain the economic worries of many Americans who have jobs but still fear they are falling behind.
