America’s political challenge, in one little chart

Two data points:

1.) Corporate profits — corporate after-tax profits — reached $1.75 trillion in the third quarter of 2012, an increase of 18.6 percent over a year ago. In fact, corporate after-tax profits now account for a bigger share of the national economy than at any point since World War II ended.

2.) Workers’ wages, on the other hand, now account for just 43.5 percent of our national economy. That is the lowest share of the national economy going into workers’ paychecks that has been recorded since World War II.

In fact, when you combine those two statistics into a single chart, you have created a snapshot of the single most important, consequential long-term issue facing both the U.S. economy and the U.S. political system. It looks like this:

corporateprofitsvswages1

In the chart, the share of the national economy, or GDP, going to workers’ paychecks is in blue. The share of the economy that is going to corporate profits is in red. (Note that in this combined chart, the two statistics have separate scales.)

Again, those are after-tax profits. While corporate chieftains complain that taxes and regulation and unions have made it difficult to do business here — Bernie Marcus of Home Depot is fond of complaining that he and Arthur Blank could never have created that company in today’s business climate — in reality times have never been better in terms of corporate profitability.

There is every indication that this isn’t the end of it, and that both trends will continue over the long term. They are being driven by factors such as technology and globalization, which empower and enrich capital while undercutting the ability of workers to demand anything close to their previous share of the economic pie.

These trends also create the backdrop for the battles being fought in Washington. Should government attempt to compensate in any way for the massive shift in income distribution away from employees, such as by providing health-care and education assistance? Or must government serve only as a disinterested bystander during this historic transfer of economic wealth and power?

The 2012 election was in some ways a referendum on that question, but its verdict was far from definitive. To the contrary, this conflict will continue to provide the subtext of American politics for at least a generation. The fiscal cliff, entitlements, Obamacare, the 47 percent, the 1 percent, corporate taxes, CEO pay, Wall Street, Medicare — the entire spectrum of economic issues confronting our political system is being driven by the forces portrayed in this chart.

– Jay Bookman

668 comments Add your comment

getalife

December 4th, 2012
11:40 am

A Fred chart :)

getalife

December 4th, 2012
11:40 am

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
11:41 am

mmmmm … charty goodness!

Joe Hussein Mama

December 4th, 2012
11:41 am

I think Erwin’s Cat could stand to look at it closely as well.

Kamchak ~ Thug from the Steppes

December 4th, 2012
11:43 am

WEALTH ENVY! card in 3…2…1….

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
11:43 am

“In the chart, the share of the national economy, or GDP, going to workers’ paychecks is in blue. The share of the economy that is going to corporate profits is in red. (Note that in this combined chart, the two statistics have separate scales.)”

the red line is going off the charts – it’s sociamalism, I tells ya!!!

Brosephus™

December 4th, 2012
11:45 am

Seems that the American worker has been getting shafted, without lube, since the 1970’s. It’s probably coincidental that the attacks on organized labor as well as supply sided economics takeover happened around the same time.

As much as the conservatives like to talk about Obama turning us into Greece, that process has been going on for a long, long time. When that powder keg explodes, Greece will look like a Girl Scout’s picnic in the park.

Doggone/GA

December 4th, 2012
11:45 am

“the red line is going off the charts – it’s sociamalism, I tells ya!!!”

And just think where it would be if businesses weren’t so “uncertain” abuot Obama!

Keep Up the Good Fight!

December 4th, 2012
11:46 am

Ohhhhh, someone is going to tell us how great it is that Walmart does not pay most of its workers sufficient wages to stay above poverty and to feed their family and about the wonder health plans that they have that most cannot participate in.

stands for decibels

December 4th, 2012
11:47 am

the red line is going off the charts – it’s sociamalism, I tells ya!!!

Clearly the peasants are being given too much free stuff.

Brosephus™

December 4th, 2012
11:49 am

Keep

I saw that last night. I think I gave myself a slight concussion from the ensuing facepalm.

getalife

December 4th, 2012
11:50 am

So the shift to focus on good paying middle class jobs is a no brainer.

Of course, our cons do not have a brain so they are against it.

Brainwashed by gop propaganda fox news.

cons are hurting their own paychecks because they are brainwashed by corporate power.

cons are self defeatists.

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
11:50 am

“Clearly the peasants are being given too much free stuff.”

well, I don’t know about you, but I hold that truth to be self-evident :roll:

Kamchak ~ Thug from the Steppes

December 4th, 2012
11:50 am

Clearly the peasants are being given too much free stuff.

My pitchfork and tumbrel?

I built those.

godless heathen - fiscal cliff dweller

December 4th, 2012
11:51 am

When someone can do your job better for less money, you have reason to worry.

Trolls Bane

December 4th, 2012
11:51 am

Since when to republicans care about these pesky little facts?

These declining wages are an opprotunited to be taken advantage of … just think, whom can the republicans blame for the dropping wages of Americans (read lower middle class & working class whites .. thier base) … wait for it … wait for it …. those people right? You know those people that speak spanish? Have abortions, gay men … blame anyone and anything EXCEPT the true republican masters …. just like a abusive spouse will blame the victim instead of their own behavior

Lord Help Us

December 4th, 2012
11:51 am

I find the direction of the wages/profits fascinating during the ‘dot-com boom.’ This is generally thought to be a period of business profits soaring with the stock market, but the chart illustrates a different dynamic…interesting…

Paul

December 4th, 2012
11:52 am

Another example of taking the rhetoric people are fond of repeating and bumping it up against data. Again, data shows the rhetoric to be not based on fact, but upon emotion.

” Should government attempt to compensate in any way for the massive shift in income distribution away from employees, such as by providing health-care and education assistance? ”

As government has been instrumental in shifting the ability to pay for those things away from workers, the answer is ‘yes.’ Of course, another option is to tax corporations (I won’t say ‘more’ as many pay no tax) to provide that. We could also give corporations a choice – greatly increase worker pay and get a tax advantage.

Followup from the prior thread, which I missed: I used to take the position Fox talk shows skewed Right but the news programs were more middle of the road. In light of the machinations of Murdoch and Ailes wanted the Fox Network to be the in-house cheerleaders for a Republican candidate. In light of the new reality, I must conclude Fox is not ‘fair and balanced’ but is shilling for the political goals of its owners and top managers.

Thank you again, Jay, for providing an outlet of information and argument whereby I can continue to evaluate my beliefs and adjust them in light of new information.

Rockerbabe

December 4th, 2012
11:53 am

Interesting! I do not shop at Walmart, I do not eatat Papa John’s or Applebees, etc. Save your money and do not feed the corporate machines and their greed.

gadem

December 4th, 2012
11:54 am

workers are lazy and are takers…the corporations need more tax breaks so that they can create more jobs for the lazy takers.

Aquagirl

December 4th, 2012
11:54 am

When that powder keg explodes, Greece will look like a Girl Scout’s picnic in the park.

The billionaire defense team doesn’t get this. They think the working class will always keep working for peanuts, thrown from CEO’s who have an inherent moral right to big paychecks.

Historically this never holds up, and you’re correct—the collapse is always ugly for everyone.

getalife

December 4th, 2012
11:55 am

Paul,

I tried to tell you that fact for years.

Better late than never.

stands for decibels

December 4th, 2012
11:55 am

When that powder keg explodes

Huh?

Really?

I don’t see that keg essplodin’, not in our kids’ lifetimes anyway.

Because…when they handed out the normal human instinct to join forces, to carry torches and pitchforks, and to place deserving plutocrats’ heads atop pikes, to us Americans?

God must’ve been out taking a whizz or something.

Trolls Bane

December 4th, 2012
11:56 am

never mind about all of the outsourcing of American manufacturing to slave-labor in china … cant get much cheaper than a slave … and the H1-B visa program … taking high-paying jobs from americans and giving to a forienger

Keep Up the Good Fight!

December 4th, 2012
11:56 am

brosephus, I’d be embarrassed if I were that poster but its obvious that our conned have become immune to being made to look foolish.

Stands, did you see the piece on a recent study that shows that more people eligible for assistance don’t take it as compared to govt waste and fraud. And of the waste and fraud, only 30% of that is actual fraud.

stands for decibels

December 4th, 2012
11:56 am

lazy takers.

and the takey lasers too. They’re the worst.

getalife

December 4th, 2012
11:57 am

At what point will the cons stop fighting against their own pay checks.

When will the cons stop being self defeatists and fight to increase their own pay checks.

stands for decibels

December 4th, 2012
11:59 am

Stands, did you see the piece on a recent study that shows that more people eligible for assistance don’t take it as compared to govt waste and fraud.

Probably not the same piece you saw, but I have seen information about something like that percentage simply not signing up for Medicaid benefits even though they qualify for them.

I’m sure some of those folks are just too proud to apply and obviously you can’t force people to do so, but it’s still shameful that we don’t make every effort to get people in that system.

Kamchak ~ Thug from the Steppes

December 4th, 2012
11:59 am

…the corporations need more tax breaks so that they can create more jobs for the lazy takers.

Eff your effin’ jobs.

It was right around the 70s that we went from careers to jobs.

Careers, with fully funded pension plans and full health coverage for employees and their families.

ad

December 4th, 2012
12:01 pm

I resisted the urge to boycott Walmart for a long time, but I’ve finally had it. It’s not the Chinese goods, or how they treat their employees (although those would be reason enough), but the fact that they’ve cut so many employees you can’t check out of the store in a reasonable amount of time, plus, their labor saving, self-checkout terminals are a POS (and I don’t mean point of sale).

St Simons - aboriginal BOOTAKOOK 2014

December 4th, 2012
12:03 pm

we were all thinking, in 1980, ‘hey this all sounds like unicorns & skittles
man, i don’t know….will this work?’

well, guess what – that apprehension you had before we went down this
road – turns out, it was well-founded. It didn’t work.

I still think falling for that crap, and voting for Ronald Reagan in 1980
is the greatest mistake of my life. And now we have ‘merka’s medical
chart to prove it.

We need to ditch this utterly completely miserably failed system and
start over with a new system soon into the new age, in 18 days.

Brosephus™

December 4th, 2012
12:03 pm

dB

I disagree with you on that one. Maybe it’s because of things I see, but its coming sooner than later.

When politicians give all kinds of freebies to companies for “jobs”, we have to pay more to make up the difference. When those companies create $11-$15 jobs for the community while importing workers for all the high pay jobs, it’s only a matter of time. You have kids graduating out of college who can’t get a job, yet we’re still importing workers on H1B visas and such. Once these things become widely known, I see it getting quite ugly here.

————————-

Keep

I think you have to have some semblance of a conscience in order to feel embarassment or shame.

weetamoe

December 4th, 2012
12:03 pm

No one in government is smart enough or objective enough to interfere in people’s lives in the interest of *fairness.* It is sure to result in injustice.

Paul

December 4th, 2012
12:04 pm

getalife

Yes, you did.

Who says you can’t teach an old dog new tricks?

weetamoe

December 4th, 2012
12:07 pm

Find the White House OMB chart showing that between 2006 and 2007 the debt/income gap had narrowed to the point that we were headed toward surplus.

Simple Truths

December 4th, 2012
12:07 pm

Jay, would you prefer if both lines were going up, both lines are going down, or the lines were reversed?

Simple Truths

December 4th, 2012
12:09 pm

Workers get 43.5%. Corporate is about 11%. What accounts for the other 45.5%?

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:12 pm

“Find the White House OMB chart showing that between 2006 and 2007 the debt/income gap had narrowed to the point that we were headed toward surplus.”

it’s aMAZing what you can do when you keep 2 wars off the books

alex

December 4th, 2012
12:14 pm

If the corporate profit is paid out to the stockholders in the public company and the workers have stock in the company,should this be included in workers profit, also the dividends are paid out to whom…..This graph does not say that the coporate chieftans get the money, to what or whom does the money go, the “corporation” owners and for public co. (home depot) that is to US the stockholder.
Now a chart looking at income discrpency over the last 40 yeasr will have them “at the barricades” and to the guillotine, hand over the basket–please!

Finally what is wascur and what is fred. Throwing charts around can be fun, without a decription of the X and Y axis is not. I once remember trying to teach a Kaplan -Meyer curve…….

Welcome to the Occupation

December 4th, 2012
12:15 pm

There is every indication that this isn’t the end of it, and that both trends will continue over the long term.

Which is why Marx’s work has never been more relevant than it is today. Ever.

We are going to see an astonishing rise in militancy in the years to come. Because we don’t have the catastrophe of Nazism and Europe destroyed to finally force some fundamental reform on the capitalists (we don’t YET, that is, but keep an eye on places like Greece and Hungary and Spain). The system simply presses on like the sty of greedy filthy pigs that it is.

Erwin's cat

December 4th, 2012
12:15 pm

JHM – I think Erwin’s Cat could stand to look at it closely as well.

Okay…because of my zero sum comment downstairs?

Jay

December 4th, 2012
12:16 pm

weetamoe, “headed for surplus” is probably too strong but yes, the lines were converging.

Joe Hussein Mama

December 4th, 2012
12:17 pm

ad — “I resisted the urge to boycott Walmart for a long time, but I’ve finally had it. It’s not the Chinese goods, or how they treat their employees (although those would be reason enough), but the fact that they’ve cut so many employees you can’t check out of the store in a reasonable amount of time, plus, their labor saving, self-checkout terminals are a POS (and I don’t mean point of sale).”

My wife and I never go to Wally World of our own volition, but my elderly mom occasionally asks to go for something or other (once or twice a year) and won’t hear of going elsewhere for whatever it is. And each time I go in there, I’m appalled at how disorderly the shelves are, how spills stay in place and uncleaned, and how employees are difficult at best to find — and never know a damn thing about what you want, not even where it might be in the store.

I’ll gladly pay the higher prices and shop at Target; at least their employees ASK if they can help you and don’t need to be chased down.

Kamchak ~ Thug from the Steppes

December 4th, 2012
12:18 pm

Joe Hussein Mama

December 4th, 2012
12:19 pm

E. Cat — “Okay…because of my zero sum comment downstairs?”

Indeed sir, you’ve picked up on my thinking precisely.

Welcome to the Occupation

December 4th, 2012
12:19 pm

These trends also create the backdrop for the battles being fought in Washington. Should government attempt to compensate in any way for the massive shift in income distribution away from employees, such as by providing health-care and education assistance? Or must government serve only as a disinterested bystander during this historic transfer of economic wealth and power?

Note, Jay, the way that our media, being the handmaidens of power that they are, have allowed the debate to be completely mis-framed. Far from framing it as you correctly do here, they allow the right wing to continue to peddle the notion that “balance” must be struck in some de-contextualized sense when what really should be the starting point for determining what “balance” is should be the facts you’ve just laid out.

But you never, ever hear that from the ABCs, CBSs, NBCs, CNNs, or even MSNBCs, and needless to say not from the FOXes.

And that is what the true outrage is here. But much of the fault for that falls on the Democratic party for having fundamentally capitulated to the basic economic framework of the GOP, such as when Barack Obama concedes that “true” job growth comes from the private sector, etc.

Dharma Bum

December 4th, 2012
12:19 pm

I’m part of the 100% that are absolutely sick and tired of the partisan gridlock in Washington (meh, maybe 96-98%, there are some sickos out there!). Stop reducing everyone to the lowest common denominator that ends up being nothing more than percentage numbers that turn Americans against one another!

It seems as though everyone but the people we have elected understand that marginal tax increases AND spending cuts must occur for us to even begin digging ourselves out of this massive hole created by profligate spending on wars and other unnecessary misadventures.

If you are an elected official in Washington D.C., you suck. Your approval ratings are continually dismal because you can’t even agree on whether rain is wet and the fiscal cliff is quickly becoming an annual American pastime. Every single one of you should be ashamed of yourselves.

Boot

December 4th, 2012
12:21 pm

What happens when one side has ALL the money and the other has NOTHING? Don’t both sides then have NOTHING?

alex

December 4th, 2012
12:21 pm

Please explain the increasiing revelency of Marx (really engel’s) work…..Don’t see increase in militancy with globalization, the industries will simply shift to the less volatile countires;not for all industies as it is difficult to move a steel mill overnight, but many of the tech industries are highly mobile..”sty of greedy filthy pigs that it is”—–”more BBQ sauce ,please”

F. Sinkwich

December 4th, 2012
12:22 pm

We’ve gone over this before.

This is called PRODUCTIVITY. It’s a good thing. It accounts for our prosperity.

Look it up.

getalife

December 4th, 2012
12:23 pm

Paul,

Well, you have a brain but if I could convince the stubborn cons to stop mindlessly fighting for record corporate profits and fight for their own paychecks instead, the red States would go back to blue.

alex

December 4th, 2012
12:24 pm

@ JHM, agree fully with you, I am willing to pay a bit more(and fortunately I am able to), for better service, etc. I know a lot of employees and they are not a happy lot.

Mark in mid-town

December 4th, 2012
12:25 pm

Jay Bookman writes: “Bernie Marcus of Home Depot is fond of complaining that he and Arthur Blank could never have created that company in today’s business climate — in reality times have never been better in terms of corporate profitability.”
—————————————————
Jay, lets put our thinking caps on for a moment. Yes, corporate profits are very high. One reason they’re so high is that large coporations are the most well-equipped to deal with massive regulations and red-tape. Such regulation and red-tape are a strong head-wind against start-ups being able to get off the ground and from smaller compaies from being able to innovate and grow. That leaves large corporations a playing field where they face less competition from newer companies. That, in a nutshell, was what Bernie Marcus was getting at. He wasn’t saying that the massive company Home Depot has become is unable to make it under today’s regulatory environment. He was saying that Home Depot the start-up would not have been able to get off the ground had the regulatory environment been then what it is today. Bernie Marcus is no dummy. He knows exactly what he is talking about.

getalife

December 4th, 2012
12:25 pm

filky,

Record corporate profits should include rising wages but tools like you built this chart.

Joe Hussein Mama

December 4th, 2012
12:25 pm

F. Sinkiewicz — “It accounts for our prosperity.”

ZOMG SOSHULIZUM

Everyone knows that prosperity is not shared; it is OWNED by them what’s got the gold.

That’s how the Golden Rule came by its name — them what’s got the gold make the rules.

:D

Erwin's cat

December 4th, 2012
12:25 pm

Indeed sir, you’ve picked up on my thinking precisely.

the biggest disparity is since 2002 or so…other that that the two tracked fairly closely…I don’t think it necessarily contradicts my zero-sum statement

Redneck Convert (R--and proud of it)

December 4th, 2012
12:27 pm

Well, my measly paycheck wouldn’t even make a small ink dot in that chart.

But since I hope to be a millionaire some day I reckon that’s the price I have to pay. I’m only $988,212 away from my goal.

So if it’s Free Innerprize it must be a good thing. One day I’ll start catching the Trickle Down from all the profits and then I’ll see the payoff. It’s only been 30 years or so since the Trickle Down promise was made. Good things take time.

Have a good p.m. everybody.

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:29 pm

2This is called PRODUCTIVITY. It’s a good thing. It accounts for our prosperity.”

no, it’s called sweatshop labor.

and it’s what’s going to kill this country.

East Cobb RINO, Inc (LLC)

December 4th, 2012
12:31 pm

Wow, look at those “W” years. We should definitely go back to those policies…..NOT!

Stevie Ray

December 4th, 2012
12:32 pm

JAY

So what is the point? Should salaries be commensurate with profits? Someone would have a difficult time explaining this to shareholders..we both know that maximizing profit is the main objective…not creating unprofitable employment as a social program.

The reason corporations of all sorts are hoarding cash is twofold..demand and uncertainty. The former is self explanatory there are a finite number of folks who can afford the latest apple gadget. The latter is twofold. Uncertaintly is largely attributed to the availability of capital in the near term. Also, if you didn’t know what tax implications are on the horizon, what new regulations will arise as well as what the recently added regulations will ultimately cost.

Of course, technology improvements have brought the average down as well.

Stevie Ray

December 4th, 2012
12:35 pm

Dharma Bum

December 4th, 2012
12:19 pm

We could definitely hang..very well put. A big reason behind the gridlock is simply money…campaign money and other promises to keep unrealistic spending and/or reasonable conversations about revenues. Until the private money is out and lobbying is neutered, dysfunctional outcomes will continue to be the norm..

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:35 pm

“Should salaries be commensurate with profits? Someone would have a difficult time explaining this to shareholders..we both know that maximizing profit is the main objective…not creating unprofitable employment as a social program.”

why not – bonuses are commensurate with profits for the CEO.

I think that employee salaries should be pegged to those of the CEO (INCLUDING his bonus / perques)

Georgia

December 4th, 2012
12:35 pm

We could grow our way out of this dilemma. Just one more ten or twenty year war. Fiscal cliff solved.
War! What is it good for? Solving fiscal cliffs.

getalife

December 4th, 2012
12:36 pm

Way to fight for declining wages stevie.

Mindless and self defeatism.

Nunna Yobinnes

December 4th, 2012
12:37 pm

Da man keepin us down.

MANGLER

December 4th, 2012
12:38 pm

wheetamoe,
I see you’re here as well touting a 1 year limited budget projection. limited because it didn’t take into account 2 wars and nation building. (don’t forget to pray to Benghazi 3 times a day facing Fox headquarters)

getalife

December 4th, 2012
12:38 pm

You too nunya.

Fight for declining wages then wonder why you are broke.

Jerome Horwitz

December 4th, 2012
12:39 pm

There’s just something morally wrong when corporations are making huge profits and workers lose wages and benefits. And the Republicans continue to press for tax cuts because business’s won’t be able to hire without profits.

beam me up

December 4th, 2012
12:39 pm

Yup, what to do in a post-labor economy? Eventually, technology is going to get to the point that we really need fewer people for just about everything. So, if we have more people, what are they going to do absent government policy that puts them to work if work is the ideal? Those who want to shrink government need to ask themselves what the alternative would look like. Do we want to kick everybody who isn’t lucky enough to be in the prime of life to the curb? Do you want to give up on military power and let the world fight its own wars (knowing that absent US deterrence, a lot more of them would be fought)?

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:41 pm

“There’s just something morally wrong when corporations are making huge profits and workers lose wages and benefits”

… all the while, saying that regulation and taxes are crippling them

Jay

December 4th, 2012
12:42 pm

“He wasn’t saying that the massive company Home Depot has become is unable to make it under today’s regulatory environment. He was saying that Home Depot the start-up would not have been able to get off the ground had the regulatory environment been then what it is today.”

Yeah, Bernie should tell that to Facebook. Or Office Depot. Or Cirrus Logic. Or Steve Madden. All great and fairly recent successes.

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:43 pm

jay – 12:42 – exactly.

Nunna Yobinnes

December 4th, 2012
12:44 pm

Oh no getalife, I suggest we pay Walmart and McDonalds employees an initial salary of $70,000 with full health coverage for the employee and all family members, and a defined benefit pension.

alittlecommonsense

December 4th, 2012
12:46 pm

I’m not sure the two charts have much relevance to each other. The blue line is largely driven by manufacturing being moved overseas in my estimation. When you have a company manufacturing it’s product overseas and you look at it’s profit vs. the wages it pays to it’s U.S. employees it doesn’t tell you much. Of course they are paying less to U.S. employees. That isn’t the bulk of their workforce. Why not talk about the root of the problem – why manufacturing is going overseas instead of trying to imply corporations are shafting the poor underpaid worker.

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:47 pm

“Oh no getalife, I suggest we pay Walmart and McDonalds employees an initial salary of $70,000 with full health coverage for the employee and all family members, and a defined benefit pension”

well, a living wage that you can actually LIVE ON would be nice.
I’d be happy with a single-payer system so that companies didn’t have the health care overhead (would also adress the “all family members” issue
and, if everyone can contribute to a 401K, that would be fine for me, too

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:48 pm

why manufacturing is going overseas instead of trying to imply corporations are shafting the poor underpaid worker

you just answered your own question.

Keep Up the Good Fight!

December 4th, 2012
12:49 pm

why not – bonuses are commensurate with profits for the CEO.

USinUK, have to disagree with you on this one. CEO bonuses are commensurate with losses, profit, terminations. :D No matter what, the CEO gets a bonus.

stands for decibels

December 4th, 2012
12:51 pm

I suggest we pay Walmart and McDonalds employees an initial salary of $70,000 with full health coverage for the employee and all family members, and a defined benefit pension.

Don’t hold back. Why don’t you go full a-hole like Mitt and suggest–horrors!–that you include dental coverageas well?

Imagine! the peasants, with dental coverage! it is to laugh!

alex

December 4th, 2012
12:51 pm

One more time: Public company, profits-where do they go:A0corporate officers B) factories,depreciation..C) Owners, stockholders-those of us who hold an Index fund (Bogle Head) or stock in the companyD0 taxes E) nowhere, it is hoarded….Please someone correct this.
Corporation will not exist very long unless they return their profits to the stockholders-you and I ….Probably too simple, not my field(obviously)..HELP

Nunna Yobinnes

December 4th, 2012
12:53 pm

You’re right dB. Add dental coverage, and six weeks of paid vacation to start.

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:53 pm

“USinUK, have to disagree with you on this one. CEO bonuses are commensurate with losses, profit, terminations. :D No matter what, the CEO gets a bonus.”

including an extra special bonus if he so thoroughly screws the company that he drives them out of business!

Jefferson

December 4th, 2012
12:53 pm

Those with the most to lose will lose the most if it continues, and if you have nothing to lose why not ?

Nunna Yobinnes

December 4th, 2012
12:54 pm

Add stock options after three months.

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:54 pm

“You’re right dB. Add dental coverage, and six weeks of paid vacation to start.”

well, companies seem to do just fine here and in Europe with 22 days paid vacation.

not to mention 6 months of maternity leave.

larry

December 4th, 2012
12:54 pm

suggest we pay Walmart and McDonalds employees an initial salary of $70,000 with full health coverage for the employee and all family members, and a defined benefit pension.

Considering their owners are multi-billionares, i doubt it would a crimp in their wallet.

Chris Matthews

December 4th, 2012
12:55 pm

In Obama I trust!

Kamchak ~ Thug from the Steppes

December 4th, 2012
12:55 pm

Corporation will not exist very long unless they return their profits to the stockholders-you and I have demand for their product or service.

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:55 pm

“Add stock options after three months.”

yep. it would be AWFUL if employees actually felt invested in the company

(horrors!!!)

Jefferson

December 4th, 2012
12:55 pm

Sometimes its worth a butt whoopin’ to knock someone’s teeth out.

Nunna Yobinnes

December 4th, 2012
12:56 pm

And an automatic raise to $100,000 after six months.

Thulsa Doom

December 4th, 2012
12:56 pm

Jay,

Looks like your reading comprehension failed you. Bernie Marcus never said HD is not profitable. What he said is that if he and Arthur had to start hd all over again from the beginning that they wouldn’t be able to do so due to onerous regulation. Pay attention sir.

STUPID LIBERAL

December 4th, 2012
12:58 pm

I do not make 70k a year, and I am an Engineer. No need to pay people who ask, “may I take your order,” for a living anything more than $7.00 per hour.

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
12:58 pm

“What he said is that if he and Arthur had to start hd all over again from the beginning that they wouldn’t be able to do so due to onerous regulation”

um. I believe YOUR reading comprehension failed you – he listed a bunch of companies that are new companies that are thriving.

Nunna Yobinnes

December 4th, 2012
12:59 pm

stupid liberal, you need to get a job at Walmart. You so silly.

stands for decibels

December 4th, 2012
12:59 pm

companies seem to do just fine here and in Europe with 22 days paid vacation.

not to mention 6 months of maternity leave.

UnU, Americans who’ve not had business dealings with Yurp…they have no clue.

I’d had close contact with what’s probably the most conservative nation in Western Yurp–ye olde Confederation Hellveteak?

They canned a colleague of mine who had been working over there on a visa, from America. This American citizen, instead of being deported like you’d imagine they’d do to such a “moocher”…

well, he got 80% of his salary for 12 months. Which he, quite reasonably, used to get to see Yurp, being that he figured he’d never get another deal like that in his life, certainly not here in the Land of the Free/home of the Brave.

Anyway, somehow that republic is still intact, even after that episode of moocherism.

larry

December 4th, 2012
12:59 pm

Come to think of it , though, I wonder if Walmart would have the most employees on public assistance if Sam were still around.

I doubt it.

Thulsa Doom

December 4th, 2012
1:00 pm

No doubt. McDonalds should pay their employees $70k per year. I do wonder though how long they are going to be employed selling $20 big Macs.

Mick

December 4th, 2012
1:00 pm

domm

Yeah, I’m sure bernie marcus would have not been able to start a HD during the great depression either. Corporate CEO’s they make themselves gods…

stands for decibels

December 4th, 2012
1:00 pm

I am an Engineer. No need to pay people who ask, “may I take your order,” for a living anything more than $7.00 per hour.

You might want to google the phrase “cycle of abuse” and maybe get yourself into a 12 step program of some sort.

USinUK - not very ladylike (and former Girl Scout)

December 4th, 2012
1:01 pm

dB – 12:59 – word