Class Warfare Blog

April 10, 2013

A Picture is Worth 1000 Words: Here’s 2000—Why Corporate Profits Are at an All-time High

There is a graph (a picture) showing after tax corporate profits as a fraction of Gross Domestic Product (GDP):

Profits-GDP

Here is a graph (another picture) of compensation of employees as a fraction of GDP:

Compensation-to-GDP

In 1980, corporate profits were about 6.5% of GDP, now they are about 11.5% of GDP.

In 1980, employee compensation was roughly 59.5% of GDP, now it is 54.5% of GDP.

Hmmm, as employee compensation shrunk by 5% of GDP, corporate profits rose by 5% of GDP. This has to be a coincidence, no? I mean corporations wouldn’t profit by squeezing their own employees would they?

Gosh.

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6 Comments »

  1. Nothing to see here, move along, sir, move along…..

    Comment by john zande — April 10, 2013 @ 10:03 am | Reply

    • Thank you, you gave me a chuckle there.

      Actually I am quite good humored, all evidence in my blog aside. But I do have this life goal of becoming a crotchety old man before I die, a curmudgeon is possible.

      Comment by stephenpruis — April 10, 2013 @ 10:17 am | Reply

      • I with you on that. I try to practice it everyday. I’m going to love old age. The local children won’t, though 😉

        Comment by john zande — April 10, 2013 @ 12:01 pm | Reply

        • Harrumph, you kids get off my lawn! (Just practicing. Heck, I don’t even have a lawn.)

          Steve

          Comment by stephenpruis — April 10, 2013 @ 12:05 pm | Reply

          • I’m going to have a huge cupboard built (possibly out of black iron) especially for all the wayward balls i’m going to commandeer 🙂

            Comment by john zande — April 10, 2013 @ 12:58 pm | Reply

            • Cheaper to just drop them into a black hole. I think Amazon has them on special this week. And where are our damned flying cars? We were promised those in the 50’s and all we got are these damned smart phones! Bah!

              Comment by stephenpruis — April 10, 2013 @ 2:21 pm | Reply


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