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View Diary: Open thread for night owls: Profits reach new heights (78 comments)

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  •  Meteor, Corp Profit Graph is confused and broken (1+ / 0-)
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    Klusterpuck

    As a reality based community it is critical to get the economic data right.  This also is critical to avoid the mime from Republicans that Democrats don't understand the real economy.

    The graph is being used to say or imply in some form that this is the share of US GDP that goes to corporate profits.  

    However the graph is using the WRONG data for corporate profits.  The corporate profits that should be used here is profits from US activity only - you used data that included profits from the rest of the world.  The graph incorrectly uses World Wide corporate profits of US based companies.

    The growth in worldwide profits from these companies is mainly from activity outside the US - as can be see from the latest report from the US BEA http://www.bea.gov/...

    World wide profits of US corps have grown faster than US GDP because these businesses have been successful selling and operating outside the US while the rest of the world has grown more rapidly that the US as much more of the world become middle class.

    The most important way to protect the environment is not to have more than one child.

    by nextstep on Wed May 08, 2013 at 08:10:04 AM PDT

    •  More on this (1+ / 0-)
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      Klusterpuck

      Here is a report from BEA discussing the difference between Domestic profits (which should be used in comparison to Gross Domestic Profit) and Nationa profits (worldwide profits from US based businesses)

      National profits have been growing more rapidly than domestic profits because of rapid foreign earnings growth, which has grown elevenfold since 1980. The share of national corporate profits accounted for by foreign profits (receipts from the rest of the world) has trended upward for the last 60 years....
      from http://www.bea.gov/...

      The most important way to protect the environment is not to have more than one child.

      by nextstep on Wed May 08, 2013 at 08:29:26 AM PDT

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