Recovery in U.S. Is Lifting Profits, but Not Adding Jobs

[TomClash]

Source: The New York Times

Recovery in U.S. Is Lifting Profits, but Not Adding Jobs
By NELSON D. SCHWARTZ
Published: March 3, 2013 6 Comments

With the Dow Jones industrial average flirting with a record high, the split between American workers and the companies that employ them is widening and could worsen in the next few months as federal budget cuts take hold.

That gulf helps explain why stock markets are thriving even as the economy is barely growing and unemployment remains stubbornly high.

With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers.

“So far in this recovery, corporations have captured an unusually high share of the income gains,” said Ethan Harris, co-head of global economics at Bank of America Merrill Lynch. “The U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.”


Read more: http://www.nytimes.com/2013/03/04/business/economy/corporate-profits-soar-as-worker-income-limps.html?hp&_r=0

[fasttense]

1. I guess that's just the "jobless recovery"

That is so popular among RepubliCONS and DINOs.

There really is NO Recovery. All that has happened is the bailout for the banksters has help along the recovery of Wall Street and large corporations. The rest of us are still suffering but that's no concern to most of the politicians we vote in.

[R. Daneel Olivaw]

11. I have a friend that I have not spoken to in years that believes this nonsense.

"Jobless recovery!", she proclaims. "Jobless recovery!", her husband agrees. She is set to inherit a few million when her parents expire so she and hers are well off.

Perhaps if she had to scratch like the rest of America she would see things differently.

Sad.

[Roland99]

2. So, surely this means corporate tax receipts are on the rise, too, eh?

[another_liberal]

3. No Billionaire Left Behind!

The rich should have all the money. What would poor people do with money anyway? They never buy anything.

[Starry Messenger]

4. Capitalism is awesome!

[LiberalEsto]

5. Of course!

The rich have set things up so they get all the money and everyone else is screwed.

I refuse to believe that a genuine recovery is taking place until I get a job. I've been out of work for 4 1/2 years and had only two interviews (neither one successful) despite sending out countless applications and resumes.

Prior to this recession, I nearly always got hired if I got an interview, and I had little trouble getting interviews.

[mother earth]

6. Self-inflicted wounds, and all to protect going back to real tax rates for the truly entitled. Why

end what is turning out to be so profitable for the l%? They want it all to continue, and continue it will. Hell, profits are higher & slave wages are going global. The oligarchy never had it so good.

[hedda_foil]

7. "American workers and the companies that employ them" ???

Well, there's the answer to your mystery right there, NYT.

[SHRED]

8. Can you say "bubble"?

[One_Life_To_Give]

9. Can only delay investment so long

Be it a Road or Business. Maintenance expenditures can only be delayed so long before the eventual costs from their delay exceed any possible savings.

[jsr]

10. The cash hoard keeps growing

while they demand more tax cuts.

[MillennialDem]

12. I don't understand why teabaggers aren't thrilled at this

[Enrique]

13. they might not know

from what I have heard on RW radio, they might think business is struggling under Obama's Maoist oppression.

[judesedit]

14. And barely pay any tax. Until we close the loopholes this will continue as long as they can get away

with it.

[L0oniX]

15. So uhm ...it's all going according to the plan ...to lift CEO's out of poverty. n/t