Corporations Are Raking In Record Profits, But Workers Aren’t Seeing Much of It

Kevin Drum Writer, Mother Jones

From the Wall Street Journal:

U.S. Companies Post Profit Growth Not Seen in Six Years

America’s largest companies are on pace to post two consecutive quarters of double-digit profit growth for the first time since 2011….Earnings at S&P 500 companies are expected to rise 11% in the second quarter, according to data from Thomson Reuters, following a 15% increase in the first quarter.

That sounds great! So does that mean worker pay has also posted strong growth? Let’s take a look:

I’ve used the employment cost index, which accounts for things like health care and other benefits, not just wages. And since corporate profits were down in 2015-16, I’ve used two-year growth rates, adjusted for inflation, to get a fair reading of longer-term earnings vs. pay.

As you can see, employee compensation growth roughly matched corporate profit growth in 2016, but in the first half of 2017 corporate profits have spiked while wage growth has been meager. Basically, corporations have manufactured profits by being stingy with workers.

I’m certainly happy to see businesses doing well. But I’d be a lot happier if this meant that workers were doing well too.

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Reposted from Mother Jones

Posted In: Allied Approaches

Union Matters

Biden His Time

On May 2, 2011, hours before I underwent brain surgery, news broke that Osama bin Laden had been killed by Navy Seals. “At least I outlived you, you son of a bitch!”

Sitting up, I had accidentally pulled several EEG leads loose from my partially shaved head. An alarm sounded. I apologized to the responding nurses.

I described that moment to Beau Biden a year later, after he led a group of veterans marching in a Fayetteville, North Carolina voter registration drive.

I was still catching my breath and wiping my brow when the Vice President’s son walked over and asked if I was doing alright.

“Yes sir, I’m fine, thank you.” Sketching a salute with my walking stick, I said, “We’ve got other things in common besides we’re both voting for your dad.”

“Is that right?”

“Yes sir. We both served in Iraq—and we both battled brain illness afterwards.”

“And here we still are.” Biden smiled and the genuineness of his expression touched my heart.

I offered a quick account of my medical marathon, including the night bin Laden’s death cheered me up, then identified myself as a 2012 Obama organizing fellowship selectee. I expressed my regret that due to medical setbacks I wasn’t able to do more for the campaign.

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Today, and Every Day

Today, and Every Day