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View Full Version : Wage reductions have driven corporate profit



Qtec
02-07-2012, 01:02 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> JP Morgan: Wage reductions have driven corporate profit increases

If you were looking to blow holes in claims that the way to help workers is to make sure corporations are profitable, this report from JP Morgan (PDF) just about says it all (emphasis in original):

'[P]rofit margins have reached levels not seen in decades. The challenge, which we have discussed many times before: what is driving these margins? One useful way to deconstruct profits is to measure them from peak to peak, and analyze what changed. As shown in the first chart, S&P 500 profit margins increased by 1.3% from 2000 to 2007. There are a lot of moving parts in the margin equation, <u>but as shown in the second chart, reductions in wages and benefits explain the majority of the net improvement in margins.</u> This trend has continued; as we have shown several times over the last two years, <u>US labor compensation is now at a 50-year low relative to both company sales and US GDP</u> (see EoTM April 26, 2011).


ThinkProgress puts this into context in two key ways. First, "since 2009, 88 percent of income growth has gone to corporate profits, and only 1 percent has gone to wages," and second, "the JP Morgan report explains this behavior taking place between 2000 and 2007, meaning that it began long before the Great Recession." </div></div>

link (http://www.dailykos.com/story/2011/07/14/994667/-JP-Morgan:-Wage-reductions-have-driven-corporate-profit-increases?detail=hide)

Q

cushioncrawler
02-07-2012, 04:23 AM
If corporate profits go up then the rich are getting very richer -- and the slaves suffer.

If corporate profits go down then the rich are not getting very richer -- and the slaves suffer.
mac.

LWW
02-07-2012, 04:26 AM
And this is the result of the fascist economic policy of the current regime ... which you have supported at every turn.

You should be ashamed.

Qtec
02-07-2012, 05:03 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">the JP Morgan report explains <span style='font-size: 20pt'>this behaviour taking place between <u>2000 and 2007</u></span>, meaning that it began long before the Great Recession. </div></div>

Q

Qtec
02-07-2012, 05:14 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">and the slaves suffer. </div></div>

You knocked it on the head C. Slaves is the right word.

Instead of bringing the rest of the worlds standard of living closer to ours in the West, the idea seems to bring our S of L down to theirs. Not for the 0.001% of course.



Q......

LWW
02-07-2012, 06:23 AM
Your link is complaining about wage drops in 20011?

Why didn't the regime stop it?

And, as far as fascist economics, Bush was also an advocate of fascist economics as I've said repeatedly.

eg8r
02-07-2012, 09:52 AM
So then you are saying this type of business acumen was a success in the long run for all those employees whose jobs were saved due to the company being able to continue doing business in such tough economic times?

eg8r

cushioncrawler
02-08-2012, 12:52 AM
This thread haz all that u need to know to learn the truth about the usofa capitalist system.

Lie No1.
That competition helps to yaddy yaddyyaaaaadddddyyyy yydddddooooodeeeedooooooo.
Krapp.

If profits are going up then that shows that competition duznt exist -- what u hav iz cartels -- zero real competition.

The only real competition iz amongst the slaves.
mac.

Lies No2 and No3 etc -- i havnt got time.

Qtec
02-08-2012, 01:30 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Why didn't the regime stop it? </div></div>

Like how?

Anyhow, in 2011, the GOP had control of the house and in all the states they control, what have they done to alleviate this problem?

Nothing.

They are making it worse by attacking unions and taking away bargaining rights from workers.



Q

Qtec
02-08-2012, 01:56 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">So then you are saying this type of business acumen was a success in the long run for all those employees whose jobs were saved due to the company being able to continue doing business in such tough economic times?

eg8r </div></div>

Geez I really don't know where to start on that ridiculous statement. Its wrong on so many levels.

Just this.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">due to the company being able to continue doing business in such tough economic times? </div></div>

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">'<span style='font-size: 14pt'>[P]rofit margins have reached levels <u>not seen in decades.</u></span> </div></div>

I posted 3 threads that are all connected but you didn't get it.


<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> "Part of the reason why business profits are so high is it is a zero-sum game, so labor is on the losing end of that," said Aaron Smith, senior economist at Moody's Analytics. "Businesses are getting more out of each worker they have." Labor's share of new income has fallen even lower -- to 57.1 percent in the third quarter of 2011 -- and is likely to fall even more, according to Smith.

<span style='font-size: 17pt'>Many employees are also working longer hours and getting more done without raises or overtime pay.</span> Worker output grew at a 3.2 percent annual rate in the third quarter of 2011, according to the Bureau of Labor Statistics.</div></div>

This is your 'business acumen'!!!

Fire workers and get the rest to work longer hours for no extra pay,[and in a lot of cases for less ] and BINGO. Immediate profit!

Q....sounds like the American Dream to me.

Way to go.

LWW
02-08-2012, 03:58 AM
How are they making record profits if they have stripped the workforce of the ability to buy at record levels and/or pay record prices?

Do you ever use logic on any of these things? Even once?

Qtec
02-08-2012, 04:22 AM
Did you read the above post? Didn't understand it?

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">they have stripped the workforce of the ability to buy </div></div>

Duhhhhhhhhhhhhhhhhhh. Why do you think the recovery is so slow?



Q

LWW
02-08-2012, 04:30 AM
According to you it isn't ... except when that fits the agenda.

Now, how about ... just once ... answering the question?

What's that?

The regime hasn't yet told you what your "OPINION" is?

Qtec
02-08-2012, 04:54 AM
I answered the Q. Its just that it doesn't compute with you.

What the data shows is that recent profits are being made off the backs of the workers ie, longer hours, less pay, less benefits and pensions, no HC coverage etc etc.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">"since 2009, 88 percent of income growth has gone to corporate profits, and only <span style='font-size: 20pt'>1 percent has gone to wages</span>," </div></div>

So there is profit but its not being shared. It all goes to the upper tier who claim they get taxed too much and deserve a tax break. YET, despite production going up, the worker has nothing to show for their labour except more attacks on them and their unions from the GOP.

There is a class war but you just can't see it.

Q......

LWW
02-08-2012, 05:54 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body">There is a class war but you just can't see it.

Q...... </div></div>

I see it very well ... and I see you upfront.

Qtec
02-08-2012, 06:40 AM
How can you expect ANYONE to take you seriosly when you have that stupid childish signature!

12 yr olds might find it worth a giggle but come on. Grow up.

Q

eg8r
02-08-2012, 09:40 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">This is your 'business acumen'!!!

Fire workers and get the rest to work longer hours for no extra pay,[and in a lot of cases for less ] and BINGO. Immediate profit!
</div></div>qtip shows his delusions. Why was this OK for you when Florida was firing government employees to save a measley $1 million but now it is not OK for you when companies are doing it to save their businesses and keep the majority of their employees working?

eg8r

LWW
02-08-2012, 06:53 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body">How can you expect ANYONE to take you seriosly when you have that stupid childish signature!

12 yr olds might find it worth a giggle but come on. Grow up.

Q </div></div>

That was a pretty childish and stupid thing for your trailerhood brother to say ... which is why I have preserved it.

LWW
02-08-2012, 06:54 PM
Because it was his beloved master, the state, doing it.