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00337: More on US economy

From: Giorgio Menon <menon(at)pd.infn.it>
Date: Wed, 08 Jun 2005 16:55:00 +0200
Subject: More on US economy

Hi All,
I've just come across this interesting essay about the US economy, wages
and corporate profits.
Serendipity anyone? Comments?

Best regards

Giorgio

It's the Fucking Economy: WORST POST WWII RECOVERY
/by/ bonddad <http://www.dailykos.com/user/bonddad>
/Sun Apr 24th, 2005 at 06:33:24 PDT/

This is part IV of a series -- /It's the Economy, Stupid /- highlighting
what is really happening in the economy. So far, it's not a pretty
picture. We've seen how *Bush's policies have in fact started to
destroy the middle class of the US. * In the first installment, I
highlighted that * THE DEMOCRATIC PARTY HAS DONE NOTHING * to help the
middle class. *THEY HAVE NOT TALKED ABOUT THE ISSUE OR ADDRESSED IT IN
ANY MEANINGFUL WAY.* The second illustrated *how job growth has been
anemic and how that has led to no real growth in wages after inflation.*
The third demonstrated how the* cycle of medical costs is leading to a
record number of bankruptcies.* Finally, today, we'll notice a really
disturbing picture. Corporations are making out like bandits thanks to
shrub's policies.



The economy is in fact growing. Currently, GDP growth comes in about
4%. In other words, someone is
making more money out there. The question is, who?

Thanks to the non-partisan Center on Budget and Policy Priorities, we
have the answer.

THIS IS THE WORST POST WWII RECOVERY ON RECORD

Here's why.

The Center's report compared the first three years of all post WW II
recoveries. The share of national
income currently going to corporate profits is 43.7%. Of all other
recoveries, the next highest level
occurred in 1961, when 26.6% of national income went to corporate
profits.


Let's look at the share of national income going to wages and salaries
for the first three years of a
recovery. Currently, 23.1% of national income is going to wages and
salaries. The next highest level
of national income going to wages and salaries is43.4% in the 1970 recovery.

But, it gets better for the middle class.

The average post WWII employer contribution to pensions and insurance is
8%. In the Current recovery,
that number is 20%. So, not only is the middle class getting less of
the total national income growth,
they are getting less in tangible current benefits to increase their
standard of living.

The US is currently in the third year of recovery. The average
percentage wage growth in the 3rd year
of all other post WWII recoveries is 4.3%. In 2004, that number was 2.6%.

Compare that to corporate profits. In the third year of all other post
WWII recoveries, the average
rate of growth for corporate profits was 2.2%. In 2004, that percentage
was 9.4%.

So, let's review. The percentage of national income increases going to
wages is the lowest of all post
WW II recoveries.

The percentage of national income increases going to corporate profits
is the highest of any post WWII
recovery.

Thanks, George.

http://www.dailykos.com/storyonly/2005/4/24/93324/8141



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