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  •  Corporate profits reach new heights; Why? (4+ / 0-)

    This article gives three basic reasons
    The Atlantic - Derek Thompson Mar 4 2013, 1:27 PM ET

    Corporate Profits are eating the economy

    Here are two things that are true about the economy today.

    (1) The Dow Jones industrial average is poised to set a new record as corporate profits stretch to all-time highs.

    (2) There are still fewer working Americans today than there were before the start of the Great Recession.

    The fact that these two things can be true at the same time might outrage you. But it shouldn't surprise you. In the last 30 years, there has been a great divergence between growth and workers' incomes, as the New York Times reminds us today. Corporate profits have soared, in the last decade especially, particularly because of three things: Globalization has pushed down the cost of labor available to multinational corporations; technology has allowed companies to make more with fewer workers, in general; and Big Finance has gobbled up the economy, as the banks' share of total corporate profits has tripled to about one-third since the middle of the last century, according to Evan Soltas.
     - emphasis added

     • under-paid workers (globalisation/colonialism redux)

     • jobs replaced by automation

     • fucking wall atreet gambling  (Big Finance has gobbled up the economy)

    Corporations rack up historic profits thanks to strong global demand, cheap global labor, and low interest rates, while American workers muddle along, their significance to these companies greatly diminished by a worldwide market for goods and people.
    I thought the job of the federal reserve was to two fold: keep inflation low & keep unemployment low.
     But now with interst rates so low, banks/wallstreeters choose to gamble on riskier/higher returns instead of investing in "boring" things that would help workers.

    Workers that bailed them out - arrrgh

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