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Corporate profits are near record highs. Here’s why that’s a problem.

 
 
 
ksen

ksen

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http://larrysummers.com/2016/03/30/...res-why-thats-a-problem/#sthash.zlDeP3am.dpuf

Third, it could be that higher profits do not reflect increased productivity of capital but instead reflect an increase in monopoly power. If monopoly power increased one would expect to see higher profits, lower investment as firms restricted output, and lower interest rates as the demand for capital was reduced. This is exactly what we have seen in recent years!
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We're due for a good round of trust busting.
 
I thought all these corporations having all this money was supposed to create jobs?

No one but Bernie would ever say the words "trust busting".

BTW, just heard that Oreo cookie production is being moved to Mexico with 600 USAians losing their jobs. I'm sure Lumpen will be along to tell us that it will be good for consumers but I'll bet the price of Oreos won't budge an inch downward.
 
I would be curious to see what lumpen says, but it's not an anti-trust issue.


But the article had a link to an interesting part where it talked about new business startups being at an all time low.
 
I think that the throw-away society where people used to have things fixed and now are just replaced with new is part of that.

TV repairmen are few and far between.
 
ZiprHead said:
I thought all these corporations having all this money was supposed to create jobs?

No one but Bernie would ever say the words "trust busting".

BTW, just heard that Oreo cookie production is being moved to Mexico with 600 USAians losing their jobs. I'm sure Lumpen will be along to tell us that it will be good for consumers but I'll bet the price of Oreos won't budge an inch downward.
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If the price of Oreos doesn't budge an inch downward, then this is actually really strong evidence that the market that Oreos compete in is nearly perfectly competitive, the exact opposite notion from what the OP is contending.

Also, how do you go from 72 months of continuous job growth - the longest streak in recorded US history, and 14.3 million private sector jobs added since the growth began, as not creating jobs?
 
Axulus said:
Also, how do you go from 72 months of continuous job growth - the longest streak in recorded US history, and 14.3 million private sector jobs added since the growth began, as not creating jobs?
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You might believe that Obama has done such a fine job producing new jobs in this country. I prefer to believe that the numbers are faked. Because if jobs are really so plentiful and people have all this prosperity, how come Wal Mart is even having trouble selling its cheap crap lately? None of this adds up.
 
The 'new jobs' are often low pay, low benefit jobs, as well.
You've got PhDs working as retail clerks, and your average auto or construction worker today isn't making near what s/he made in the sixties or seventies, in real money.
 
Yes, employment has been growing for the last six years but it still isn't where it was before the Great Recession.

Civilian employment ratio.png​

This is the percentage of the population that is employed.
 
ksen said:
http://larrysummers.com/2016/03/30/...res-why-thats-a-problem/#sthash.zlDeP3am.dpuf

Third, it could be that higher profits do not reflect increased productivity of capital but instead reflect an increase in monopoly power. If monopoly power increased one would expect to see higher profits, lower investment as firms restricted output, and lower interest rates as the demand for capital was reduced. This is exactly what we have seen in recent years!
Click to expand...

We're due for a good round of trust busting.
Click to expand...

So profits are bad because they may indicate that companies are monopolists? Opinions are great, but I'd like to see some evidence? Pretty please?
 
coloradoatheist said:
I would be curious to see what lumpen says, but it's not an anti-trust issue.


But the article had a link to an interesting part where it talked about new business startups being at an all time low.
Click to expand...

I thought that was interesting as well. I found an additional article on this:

http://www.kansascity.com/news/business/article366997/Business-startups-hit-a-30-year-low.html

I think that it's related to an aging society. It's very difficult to start a new company and incredibly time consuming. I'd far rather be a wage slave and have the weekends free.
 
SimpleDon said:
Yes, employment has been growing for the last six years but it still isn't where it was before the Great Recession.


This is the percentage of the population that is employed.
Click to expand...
Unemployment never falls below 55%? Are they including kids and family pets?
 
seyorni said:
SimpleDon said:
Yes, employment has been growing for the last six years but it still isn't where it was before the Great Recession.


This is the percentage of the population that is employed.
Click to expand...
Unemployment never falls below 55%? Are they including kids and family pets?
Click to expand...
Kids, probably. It does say "population" which I take means everybody, including children and retirees.
 
RVonse said:
You might believe that Obama has done such a fine job producing new jobs in this country. I prefer to believe that the numbers are faked. Because if jobs are really so plentiful and people have all this prosperity, how come Wal Mart is even having trouble selling its cheap crap lately? None of this adds up.
Click to expand...
Perhaps they have enough disposable income they don't have to shop at Walmart to get by. Walmart is the "just getting by" store.

SimpleDon said:
Yes, employment has been growing for the last six years but it still isn't where it was before the Great Recession.


This is the percentage of the population that is employed.
Click to expand...
Yes. This is what I was thinking. In the past 72 months, the bar was quite low to start. It's kind of hard not to look good.
 
ZiprHead said:
dismal said:
Nope, it's people 16-64.

Wake up slap. A lot of Americans don't work.
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That's not a slap, it's a tautology. The question is why a lot of Americans aren't working.
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Some are retired. Some are married and stay at home. These numbers trended up for decades as women entered the workforce in greater numbers. I don't imagine as many 16 year olds work as once did.

However, the big growth wedge in non-working working age adults is disability.

Even as we make great leaps forward in medical science and workplace safety for some reason more and more Americans just keep coming up disabled.

Link:

http://apps.npr.org/unfit-for-work/
 
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