Immanuel Wallerstein

Doug Henwood dhenwood at panix.com
Mon Sep 6 09:53:10 PDT 1999


christian a. gregory wrote:


>A question: when US corps talk about profits, how much (if any) is due to
>current stock market bubble? Are returns or expected returns from equity
>counted in this arithmetic? I'm not doubting that profits have gone up, but
>I'm wondering how much is due to financial returns, how much from
>productivity growth (value added/ hour) in manufacturing.

Some share of profits come from the bubble, no doubt, but the numbers I used were for nonfinancial corporations. Expected returns don't count - just profits "earned" in the quarter or year under consideration. These profits are adjusted for what the Bureau of Economic Analysis considers overly generous depreciation allowances for tax purposes.

Doug



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