Sunday, December 2, 2012

Corporate Profits Boom in USA While Workers Struggle With Low Pay

From the link:

Financial industry is doing well in USA. Corporate profits have never been higher in the history of USA.

Corporate profits reached a record high in the third quarter, according to a Commerce Department report out Thursday. And the financial sector is doing particularly well.Financial companies accounted for all of the net growth in domestic corporate profits during the third quarter, according to analysis by Haver Analytics cited by The New York Times. Catherine Rampell writes:

Meanwhile, workers are struggling. Average hourly pay, when adjusted for inflation, has fallen 0.7 percent over the past year, according to the Labor Department. And the unemployment rate in October was 7.9 percent -- it was at a low of 4.4 percent in May 2007 before the recession.

It's a "zero-sum game," Moody's Analytics economist Aaron Smith told The Huffington Post in February. Companies are earning record profits largely because they are squeezing more productivity out of their workers without paying them more. Workers are afraid to slack off because it's become so hard to find another job.

Moral of the story: If you are an executive in a corporation in the management, you are in the money (making decent money). If you are just a worker on the lower tier, you are screwed / or you are probably not raking in the money. This is why an MBA education is helpful...

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