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

Myles Sussman myles.sussman at gmail.com
Tue Mar 23 12:23:49 PDT 2010


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.



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