[lbo-talk] The Economist: US National income up by $200 billion, wages down $90 billion since the "worst" of recession

[Myles Sussman]

The only thing surprising to me is that they're surprised.

http://www.economist.com/blogs/buttonwood/2010/03/profits_commodities_and_debt

Figures that surprise

   - Mar 22nd 2010, 14:25 by Buttonwood

 IF YOU need an explanation as to why political discontent is so widespread
on both sides of the Atlantic, take a look at figures compiled by Dhaval
Joshi of the hedge fund RAB Capital. *This recovery has benefited companies
a lot and workers not at all.*

In the US, Joshi calculates that, in cash terms, national income has risen
$200 billion since the depths of the recession in March 2009. But corporate
profits have risen by $280 billion over that period, while wages are down by
$90 billion. One would have to go back to the 1950s to find profits
outperforming wages in absolute (cash) terms, and even then it was on a much
smaller scale. In Britain, national income rose $27 billion in the last two
quarters of last year. Profits were up £24 billion and wages just £2
billion.