Corporate Profits are at an all time high, yet wages at an all time low. Is this the Capitalism....?

.....that Conservative strive for? All in the name of profits, and less pay for the hard working American.

Profits Just Hit Another All-Time High, Wages Just Hit Another All-Time Low

1) Corporate profit margins just hit another all-time high. Companies are making more per dollar of sales than they ever have before. (And some people are still saying that companies are suffering from "too much regulation" and "too many taxes." Maybe little companies are, but big ones certainly aren't. What they're suffering from is a myopic obsession with short-term profits at the expense of long-term value creation).

2) Wages as a percent of the economy just hit another all-time low. Why are corporate profits so high? One reason is that companies are paying employees less than they ever have as a share of GDP. And that, in turn, is one reason the economy is so weak: Those "wages" are represent spending power for consumers. And consumer spending is "revenue" for other companies. So the profit obsession is actually starving the rest of the economy of revenue growth.

11 Answers

  • Josh
    Lv 4
    7 years ago
    Favourite answer

    My salary is only about $180k per year, give or take. But most of my real compensation comes in the form of stock options and grants or performance bonus. The way white collar people get paid has changed a great deal in the last 25 years. That needs to be taken into account.

  • 4 years ago


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  • Jim B
    Lv 6
    7 years ago

    You are right. This is the way it has always been and always will be. our Government wants us to believe that all major corporations are owned by some old rich coot with more money than carter has little liver pills which could be no farther from the truth. major corporations are owned by millions of stock holders who invested their money in companies with the intentions of making money from their investments. If these corporations would ever fail to make money for their investors their stocks would bottom out and the market that drives our economy would suffer from total collapse from people getting rid of their stocks. That being said Yes corporate profits are at an all time high because most of their money is being made outside the limits of the United States which makes it Tax Free. Example that I know something about. Exxon Mobil buys a Tanker load of crude oil in the Middle East. When that tanker reaches international waters it goes on the open market and may be sold 10 times to different Brokers and Exxon Mobil may have owned it 2 or 3 times before ending up with it in the end, having made money several times on the same shipment. Once it leaves international waters who ever owns it now (in this case Exxon Mobil) will pay tax on what they make over the final buy price. having made Tax Free money several times already it reaches state controlled waters and tax being due on the profits derived from the last selling price less the cost of refining and being sold retail. It is big corporations making money and paying their investors a profit. Yet most of those Profits are not taxable. Some of the billions these companies make are not only Tax Exempt but are invested in Overseas corporations in countries that have very lenient Tax laws. 99 percent of the ships transporting products around the world fly foreign flags because they can not afford to register them in the United States even though they may be owned by U.S. companies who have foreign offices corporations around the world. I don't care how many times our government tries to convince us they are not paying their fair share it is all legal and it is not going to change. Granted some things may have changed thru the years but I know this from years gone by.

  • 7 years ago

    Not sure if they're at an all time low. People just found a way to expand wants into needs. Nothing is outright payed for. Convenience is borrowed time. We're not meant to be machines. Learn multiple trades.. build your own house.

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  • Anonymous
    6 years ago

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  • 7 years ago

    you do undersnats

    the sole purpose of a corporation

    is to make the owners of the corporation -- money

    2. its not to make a product

    its not to pay people wages

    its not to give someone a job

    its to make the people who invested thier money in the corporation -- money !!!!!!!!!

  • Anonymous
    7 years ago

    If you aint got no skill then I aint paying for you to live.

    Low wage labor should be like 3 bucks a hour.

  • Anonymous
    7 years ago

    If you don't like it, start your own company and pay your workers more. That is what the free market is about, NOT socialism that you liberal pigs want.

  • ken
    Lv 6
    7 years ago

    More like Government Regulation and Obama's war on business and the middle class.

  • 7 years ago

    Are you going to blame Bush now? Even though Obama's the president? Oh, right! Obama can't do any wrong! He's black!

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