The end of the American dream? Corporate profits increased sharply; Wages reached a record low

[dajoki]

The end of the American dream?
Analysis
By Steve Schifferes
Economics reporter, BBC News website

Wage growth for average workers has been stagnant

The US economy has been generating strong economic growth over the past few years as it has come out of recession.
http://news.bbc.co.uk/2/hi/business/5303590.stm

<<snip>>

For real household incomes, the median point - the level at which half of households earn more and half less - has actually fallen over the past five years.


Slowing wages

<<snip>>

Productivity - the measure of the output of the economy per worker employed - grew even more strongly, by 16.6%.

But over the same period, the median family's income slid by 2.9%, in contrast to the 11.3% gain registered in the second half of the 1990s.


Where has the increase gone?

<<snip>>

The share allotted to corporate profits increased sharply, from 17.7% in 2000 to 20.9% in 2005, while the share going to wages has reached a record low.


Rising inequality

<<snip>>

The incomes of the top 20% have grown much faster than earnings of those at the middle or bottom of the income distribution. The income of the top 1% and top 0.1% have grown particularly rapidly.

From 1992 to 2005, the pay of chief executive officers of major companies rose by 186%.

The equivalent figure for median hourly wages was 7.2%, leaving the ratio of CEOs' pay to that of the average worker at 262.


Click here for a graph of wages vs. productivity http://news.bbc.co.uk/2/hi/business/5303590.stm#graph

[slipslidingaway]

1. K&R thanks n/t

[dajoki]

3. You're Welcome n/t

:hi:

[gateley]

2. I know. It's chilling. Another thing we have permitted them to do to us. K&R

[dajoki]

4. How much more can we take?

[TahitiNut]

5. The ratio of Corporate Profits to Employee Compensation is at its highest in 76 years.

Yes, that's since BEFORE the Great Depression. It must be noted that "Employee Compensattion" includes executive compensation!

[slipslidingaway]

7. Thanks for posting these! n/t

[dajoki]

8. That makes it even more disgusting n/t

[indepat]

6. The 'puke plan is working really well: sadly tens of millions of Amurikans being savaged support

junior and his fiscal and tax policies, his corporatism, and the invasion and occupation of Iraq.

[dajoki]

9. Just what they wanted n/t

[Skittles]

10. they are pimping off our jobs to the lowest bidders overseas

while trashing the "anti-American left" :puke:

[illinoisprogressive]

11. This country needs your avatar. We need a FDR type candidate.