In contrast to our recent discussion about widespread poverty and homelessness this report from Bloomberg is particularly astounding. They found that corporate profits are at their highest levels since 1900 — “Corporate Profits Have Grown By 171 Percent Under Obama — Highest Rate Since 1900: Corporations are Making Twice as Much Profit as During the Reagan Years.” Not coincidentally is this report on the growth of the working poor: “Low-Income Working Families: Growing Poverty and Growing Economic Gap: Nearly one third of all working families—32 percent—may not have enough money to meet basic needs.”
Of course, keeping wages low is the prime reason why corporate profits are at record levels. Indeed, labor’s share of the GDP is at record lows as this chart from the St. Louis Federal Reserve contrasting corporate profits and wages in the GDP shows.
KZ
