Corporations Have Biggest Share of Income in 40 Years
by Bonddad, Thu Mar 30, 2006 at 03:25:32 PM EST
U.S. corporate profits have increased 21.3% in the past year and now account for the largest share of national income in 40 years, the Commerce Department said Thursday.
Strong productivity gains and subdued wage growth boosted before-tax profits to 11.6% of national income in the fourth quarter of 2005, the biggest share since the summer of 1966.
For all of 2005, before-tax profits totaled $1.35 trillion, up from $1.16 trillion in 2004 and just $767 billion in 2001.
Meanwhile, the share of national income going to wage and salary workers has fallen to 56.9%. Except for a brief period in 1997, that's the lowest share for labor income since 1966.
According to today's revised 4th quarter GDP report, total corporate profits increased 14.5% in the 4th quarter of 2005, up 21% from year ago period. Total corporate profits were $1.031 trillion in 2001 and $1.478.9 trillion in the 4th quarter of 2005. That's a total increase an inflation adjusted 30.89% and a compound annual growth rate of 6.9%.
Over the same period (2001-2005), non-supervisory wages have increased an inflation adjusted 2.04%, or a compound annual growth rate of .5%.
Where's the trickle down again?