Friday, July 15, 2011

I Bet This Economic News Will Totally Surprise You

From Think Progress:

"JP Morgan Investor Report: Huge Corporate Profits Resulted Directly From Reducing Wages And Benefits

As ThinkProgress previously reported, since 2009, 88 percent of income growth has gone to corporate profits, and only 1 percent has gone to wages. Now, a July 11 edition of Eyes On The Market, a JP Morgan investor report, finds that S&P 500 corporate profit margins increased by about 1.3 percent from 2000 to 2007, with profit margins reaching levels “not seen in decades.”

The JP Morgan analysis concludes that “reductions in wages and benefits explain the majority of the net improvement in margins.

US labor compensation is now at a 50-year low relative to both company sales and US GDP.”

That is how corporations are reaching record profits- not by making better products, or by marketing them more effectively.  No, their obscene profits during this time of economic stress result almost entirely from crushing their workers, with the ever present threat that if workers don't collapse in the face of the onslaught, their jobs will all be moved to China.

I want to state once again what should be utterly obvious to everyone by now (this means you, Barack:)  The super rich and their tools in the Republican party are engaged in a conscious, deliberate campaign to turn the United States from the leading industrialized nation on earth into a miserable third world country with no middle class and a working class so close to starvation that it is incapable of opposing its effective slavery.  And they seem to be easily succeeding.


Dave Dubya said...

And don't forget if you even mention class warfare or corporate personhood you are an America-hating Commie starting a class war.

Cardinal44 said...

It really does surprise me! I can't believe JP Morgan would ever admit that record corporate profits have been achieved by abusing workers and reducing wages.