In Corporate Profits at Record Highs, While Labor Compensation at 38-year Lows John Irons brings up an interesting point about Corporations making more profits starting in 2001 and that labor compensation has decreased by about 4 percent which has brought it down to 63 percent but at the same time corporate profits have increased by about 4 percent taking them up to 12 percent. After all is said and done, (taxes being the said and done) profits reached 9.6 percent of GDP which is the highest it’s been dating back to 1947.
The economy has grown over the past year showing sings that the recession may be at last over. This would cause the American people to hope that the increased production would find its way into their pockets. But that doesn’t seem to be the case because lower proportion of national income is going towards labor.
The recovery from the recession doesn't seem to be a real one because its affects aren't widespread in the economy. Has the recession really come to a stop or have a few big business come into relief and their pocketbooks are feeling a little heaver then usual. Will the trend continue for them or will they begin to fell it like the rest of us Americans.
I know I personally have felt the affects of the recession. Here in Cedar there isn't a large quantity of jobs available and jobs are hard to come by unless you want to drive 45 min to St. George to have a better chance of finding a job. With no job I’m much tighter with my money and don’t spend it as easily if I had a job and knew I had some kind of paycheck coming in every two weeks. I’m not helping the economy out but it’s not really helping me either.