I got this from Naked Capitalism. Before presenting the chart, here are some words to bear in mind from Yves Smith:
Short omits some key elements from his discussion. One is that until recently, a profit share of GDP of 6% was perceived to be a cyclical peak; no less than Warren Buffet deemed a higher level to be unsustainable. And in fact, we see an explosion of profit share from 6% to 10% of GDP in the runup to the crisis, roughly from 2003 to 2007. The “rescue the banks and financial markets” measures succeeded in bringing the profit share back to its pre-crisis levels, at the expense of workers.
Notice the inflection point in profit share is 1987, when Greenspan became Fed chairman. Correlation may not be causation, but the timing is almost exact.
The Maestro strikes again!
Don’t worry plebs, it’ll get better next year. Just keep calm and slave on.
In Liberty,
Michael Krieger
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This trend is often mentioned in the media, yet no politicians, even those supposedly on the left, seem to champion tackling it. It’s as if it’s set in stone, like a force of nature, to be observed but never challenged.
The next big trend also going largely unchallenged is the destruction of jobs by exporting jobs or replacingflesh and blood with intelligent systems. We all stood by and said little as the decimation of the working class progressed. This will accelerate as mass jobs in retail (auto check out), in transport (driverless cars/lorries) etc., are destroyed.
Next it will be the middle classes. Who needs a doctor, a scientist, an accountant, or a secretary, when a machine will do better for a fraction of the cost?
I remeber the 80’s well… when they told us “Computers will help” “Computers/Machines will do all work for us, we can relax” and so on…
What they DID NOT mention was, from what kind of ressources we live then 😉
Start reading between the lines, dude ! They sell everything “to the good of all mankind!!!”… but in return we fuck ourself from behind… like nuclear power… cheap, unlimited,..blabla… no word about the radiation, the costs to remove that shit and things like fukushima or tchernobyl…
Like your favourite carseller doesn’t tell you shit about the problems of your new dream-car 😉
get the point ?
😉
Yup. With enormous over capacity in the labor market, corporations get to pay their employees like shit (except for executive management of course). The employees that get paid like shit then get transfer payments directly from the government to make up for their everyday expense shortfalls, as said transfer payments goes back into the corporate coffers as profits—subsidized by what’s left of the middle class that is being robbed through taxation and inflation. And those that don’t work but our on the govt. payroll are even a bigger boon for corporate profits!
Of course, stocks go higher on this merry go round. And the executives get paid more for their brilliant management of collecting transfer payment revenues and their options do nicely to boot. And the well to do make more money on the stock market’s rise. Inflation in this scenario continues to eat away at the middle class and lower class as this cycle continues as the govt gets more and more involved (and the public actually looks to the govt. as the answer), so more transfer payments, more corporate profits subsidized by the Govt, and the executives and rich and richer at the expense of this insidious cycle.
It’s why Janet says the little guy must build up assets–to get on this great merry-go-round. But of course, eventually, inflation goes too high, and it most certainly will at some point, and everything goes to hell anyway.
And people who see the writing on the wall, a lot of good middle class folks, that have tried to take protection from this house of mirrors in the form of bullion get further robbed blind by the banking cartel and fraudulent price setters so they don’t lose the above cycle……
Eventually, the house of cards all come tumbling down.
It will not be “NEO” for long. Feudalism is coming to america where survival of the fittest will be the norm! THANK YOU FOR THAT MR OBAMA! YOU POS!
yeah,.. shure… its obamas fault… all other idiots before did well.
WTF ???
Get yourself a timecapsule and go back… lets say to the 50*s maybe…
If you don’t like him, …fine, your personal problem. but its definately not his fault that the US is that what it is today ! You need more than one puppet to fuck all up over the longterm !
Or your just a stupid racist … in any way… get a brain ! get a memory !!!
http://www.nytimes.com/2014/11/16/us/more-federal-agencies-are-using-undercover-operations.html?_r=0
new york times defends the u.s. behaving precisely like nazi germany, stazi , and communist soviet union.
new york times. its for natzis!
Whats the saying ? “Learn from the best!”
😉
But i am always amazed why no american can critizise anything without mentioning the russians. Is it some kind of Mantra for you ?
At least they kept/keep the spying/hunting within their borders… you (the US) do it everywhere…
And since ages I wonder where you got the paranoia that makes you do this things.. again and again and again….
Seems there is no behavourial learning effect in your doing.
(which is by definition “stupidity” !)
That learning resistance combined with your “we are the best, f*ck the rest” makes it even worse to feel comfortable on this planet.
I live in Germany… so a few thousand Km from the russian border… but you guys scare me much much more than anything else on this planet !
I really wish you would keep things for yourself and clean up your own backyeard, instead of playing the “sherrif”, which noone really asks for !
Maybe starting to remove your troops/bases from around the world would be a good thing for starters… then we can go on with stopping the waste of energy and ressources… that would really help all mankind ! Not your stoneage thinking of “the guy with the bigger weapon wins”. Everyone hates the Bully’s ! As you should have recognized by now ! Its time for something else. You can do better ! Just try it for once ?
I came to the conclusion a few years ago that I make my employer about 3 times as much money as he pays me, so I came to the mindset that I am going to eventually work a third of the time, for myself, and make just as much money. Now I work twice as hard for the same money, but have complete piece of mind that walking away from corporate business was the right choice for me.
Get off the wheel, people.