Wednesday, November 30, 2011

How the "Job Creators" Have Failed

In the US the Republican party continues to argue for tax cuts for the ultra-rich and for corporations on the myth that these are "job creators" and you need to do everything possible to encourage them.

Here is the reality. From a post by Ed Yardini:

Click to Enlarge
The rebound in [business] profits’ share of National Income has been spectacular. It jumped from a recession low of 7.9% during Q4-2008 to 14.7% during the third quarter of this year. That surpasses all previous cyclical peaks.


Compensation of employees continued to lose share of National Income during Q3. It fell to 61.4%, the lowest since Q3-1965, and down from a record high of 68.5% during Q2-1980.
Let me spell this out very simply for you: the rich get richer, the poor get poorer.

If you are working, all of your increased productivity has gone as profits to the corporations and the workers have received none of it.

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