What's Happening In Your World
With all of the doomsday theories about the fiscal cliff and the dwindling American economy, most of us feel like it would be nice to receive some good news from Wall Street. Luckily, there is good news for once… if you’re a corporation. U.S. corporate profits are stronger than they have ever been. Corporate profits are even stronger than they were before the recession, which was the worst economic shock in the U.S. since the Great Depression. Third quarter data from the gross domestic product report shows us that corporate earnings went up 18.6 percent from last year. The third quarter brought in 1.75 trillion dollars. That number puts earnings at the highest that they have ever been in gross domestic products history. Perhaps its not time to celebrate yet; worker’s wages have fallen to the lowest that they have ever been in gross domestic product history as well. Economist Heidi Shierholz from the Economic Policy Institute says, “Corporate profits took a big hit in the recession like everything else, but they’ve seen a massive bounce back.Wages are determined by what’s going on in the labor market and we haven’t seen a big bounce back there.” Businesses could hire more people, but until they see a greater demand for their product they will have no legitimate reason to. Businesses that have high labor costs tend to move overseas, where labor is cheaper, so they can keep their profits high. The tension between profits and the cost of labor is the result of an inverse effect in business. If the profits go up then the cost of labor goes down.  

Corporate Profits Hit Record Highs But Black Unemployment at Record Highs Too

With all of the doomsday theories about the fiscal cliff and the dwindling American economy, most of us feel like it would be nice to receive some good news from Wall Street. Luckily, there is good news for once… if you’re a corporation. U.S. corporate profits are stronger than they have ever been. Corporate profits are even stronger than they were before the recession, which was the worst economic shock in the U.S. since the Great Depression.

Third quarter data from the gross domestic product report shows us that corporate earnings went up 18.6 percent from last year. The third quarter brought in 1.75 trillion dollars.

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One comment

  1. So are you saying, that if a company makes a certain amount of profit they should hire more black workers?? Or more workers period!

    I understand most black people do not understand macro or micro economic’s but come on people, surly
    you can see why this is wrong on so many levels.

    Don’t start thinking like our President, were going down the tubes fast enough!

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