Corporations Snag Record GDP Share from individuals - highest since 1968

[papau]

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_baum&sid=aF8SJdYLVnpM

Caroline Baum:Those Greedy Corporations Snag Record GDP Share: 3/26 (Bloomberg) -- <snip>Yesterday's report on fourth-quarter gross domestic product was not without interest, however. That's because it came with the first look at economy-wide corporate profits, which rose 29 percent on a pretax basis from the same quarter a year earlier to a record $1.21 trillion.

<snip>The profits in the Commerce Department's National Income and Product Accounts are based on results reported to the Internal Revenue Service. No one over-reports income for tax purposes.

<snip>Pretax economic profits rose to 10.7 percent of GDP, the highest share since the second quarter of 1968.

<snip>The profits magic is easily understood by comparing the difference in overall growth and employee compensation. Year-over- year nominal GDP rose 6 percent in the fourth quarter while pretax employee compensation was up 3.3 percent.

If productivity continues to grow at the inflated pace of recent years -- output per worker hour in the non-farm business sector rose 5.4 percent on a fourth-quarter over fourth-quarter basis -- it may be more of the same: a larger pie and a larger slice to corporations. <snip>

[wryter2000]

1. Bingo!

Jobless recovery. The next time someone says the economy is booming, hit them with this.

Thanks!

[liberalpress]

2. Classic Trickle-down economics...

...just like with Reagan. Cut taxes to big business... and they'll keep the profits. Trickle-down didn't work then, it doesn't work now... 41 was right when he called it "voo-doo" economics.

[On the Road]

3. Classic Banana Republic Economy --

low growth, high profits, low wages, high unemployment -- and for the same reasons.