In the US, Joshi calculates that, in cash terms, national income has risen $200 billion since the depths of the recession in March 2009. But corporate profits have risen by $280 billion over that period, while wages are down by $90 billion. … In Britain, national income rose $27 billion in the last two quarters of last year. Profits were up £24 billion and wages just £2 billion.

From Buttonwood. This has not been a bad recession for capitalists.

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11 thoughts on “Amazing figures of the day

  1. In many respects it has been a distinctly unfair recession. I suppose they all are but this one even more so. Just like you wrote in your paper for those who are asset rich and in employment it has not been too bad. The dynamics of the ZIRP policy has confounded most forecasts on the macro economy. The profitability of the corporate sector has been a real surprise. The same thing has been happening in Europe with dividends set to rise by 18%. Some of them have so much money they do not know what to do with it other than give it to shareholders.

    “Is it a sign companies don’t know what to do with the money? Or that there is an absence of growth opportunities?”
    http://www.ft.com/cms/s/0/ad20027c-3520-11df-9cfb-00144feabdc0.html

    Reading Simon Ward’s journal he estimates that the aggregate profits of the UK banks could exceed the 2007 peak as early as 2011. As I said an unfair recession.
    http://www.moneymovesmarkets.com/

    These surveys should interest you in relation to ‘ Credit where it’s due .’ It looks like we are in an investment strike rather than a credit crunch.

    ‘An RBS poll found that of 500 businesses quizzed nearly half said they were not investing in their business because they were worried about the economy, and a third said they had no desire to expand their business anyway.

    The results echoed similar research by the Forum of Private Business, which said financing problems were now the least relevant concern cited by businesses – a startlingly different position from a year ago when one in five companies said they were worried about financing. ‘
    http://www.ft.com/cms/s/0/f59af5b0-35f3-11df-aa43-00144feabdc0.html

  2. Comrade, no recession is bad for capitalists… Especially not one centred on a systemic crisis in finance capital that resulted in government bailouts.

    1. Must be quite a lot, because it has lowered interest costs which are a business expense, and boosted asset prices. But the scaryt thing is probably that some of that is also in addition.
      Must remember however that corporations are not people. We own and work for them, and use the stuff they make. So not all goes to some-non-person but returns in a difft way

      1. Fair cop. I don’t think the profits-wages split in the economy is of no consequence, for the record …

  3. Surely though if profits are up more than (or same as in the UK) national income then those of us who work for them and buy things off them haven’t benefitted directly.

    1. not at the first iteration. But the profits may be ploughed back, encourage new entrants or new investment.

      But yes, it might just go in dividends, then pension funds, and those are held in the top 50%

    1. And have you read the FT today (ANalysis section)? Germany profits are now 40% o GDP (!). At some point, their unions will effect the rebalancing we all apparently need …. but when?

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