STOCK MARKET WATCH -- Wednesday, 4 February 2015

[Demeter]

16. Economy grows, incomes shrink

http://america.aljazeera.com/opinions/2015/1/economy-grows-incomes-shrink.html



The first data on 2013 incomes show continuing bad news for Americans, my analysis of a new Internal Revenue Service report shows.

Average income fell 2.6 percent in 2013, even though the economy grew 3.2 percent in real terms over 2012.

Average inflation-adjusted income in 2013 was 8 percent lower than in 2007, the last peak economic year, and 6.9 percent less than in 2000, the year President George W. Bush set as the standard to evaluate the effect of his tax cuts and regulatory policies.

This is the latest sign of a disturbing trend. An ever-shrinking share of national income flows to individuals while corporate profits expand.
Capital over labor

In fact, profits hit a record high in 2013 both in absolute terms and as a share of the economy. By both measures, profits have continued rising.

By contrast, labor’s share of national income has been trending downward since 1980, except for a spike during the second term of President Bill Clinton. The decline accelerated after the Bush tax cuts took effect, retroactively, to the first day of 2001.


INTERACTIVE GRAPH AT LINK AND MUCH MORE DETAIL