$1.66 trillion dollars of corporate profits as the middle class tread water. American corporations have no incentive to invest in America. They have a substantially reduced payroll which adds to the bottom line as above and beyond wages, they actually get increased productivity from the employees left who are scared to complain lest they find themselves on the unemployment line. The employees left working can easily be replaced from the pool of the unemployed willing to work at a fraction of the cost.
How did we get here? Laissez Faire Capitalism is the culprit. Corporations have no loyalty to employees. Corporations have no loyalty to families. Corporations have no loyalty to country. Yet, it is our country, the United States of America that has invested in the education, infrastructure, and a military that have afforded their success.
While Republicans want yet more tax cuts for corporations under the pretext that they will create jobs with said continued windfall, the evidence is clear that that would be fool’s gold for the middle class as corporations will maximize their profits by their continued commoditization of labor. Either Americans accept a new normal of third world corporate imposed wages or they will continue their outsourcing mantra.
It is time to bias our policies to the individual, to the middle class. Corporations have become our cancer. They have taken control of the main stream media, the politicians, and the minds of many in the middle class that they are actually hurting.
Free Enterprise must once more reign. But it will take methodical reeducation of the middle class and a change in paradigm. The answer will be self-reliance and inter-individual commerce where possible excluding corporate commerce wherever possible. Formation of corporations should be for the good of society and not for the pilfering of those not incorporated. Subsequent articles will detail.
My Book: As I See It: Class Warfare The Only Resort To Right Wing Doom
Book’s Webpage: http://books.egbertowillies.com – Twitter: http://twitter.com/egbertowillies
Corporate Profits Were the Highest on Record Last Quarter By CATHERINE RAMPELL
Published: November 23, 2010
American businesses earned profits at an annual rate of $1.66 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or non-inflation-adjusted terms.
Corporate profits have been going gangbusters for a while. Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history.
This breakneck pace can be partly attributed to strong productivity growth — which means companies have been able to make more with less — as well as the fact that some of the profits of American companies come from abroad. Economic conditions in the United States may still be sluggish, but many emerging markets like India and China are expanding rapidly.
Tuesday’s Commerce Department report also showed that the nation’s output grew at a slightly faster pace than originally estimated last quarter. Its growth rate, of 2.5 percent a year in inflation-adjusted terms, is higher than the initial estimate of 2 percent. The economy grew at 1.7 percent annual rate in the second quarter.
