(Corporate) Profits surge to 40-year high

[UpInArms]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC4257910%2D8351%2D437A%2D8C00%2DE4CF3B782091%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- U.S. corporate profits have increased 21.3% in the past year and now account for the largest share of national income in 40 years, the Commerce Department said Thursday.

Strong productivity gains and subdued wage growth boosted before-tax profits to 11.6% of national income in the fourth quarter of 2005, the biggest share since the summer of 1966. See full story.

For all of 2005, before-tax profits totaled $1.35 trillion, up from $1.16 trillion in 2004 and just $767 billion in 2001.

Meanwhile, the share of national income going to wage and salary workers has fallen to 56.9%. Except for a brief period in 1997, that's the lowest share for labor income since 1966.

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Profits have been so high because almost all of the benefits from productivity improvements are flowing to the owners of capital rather than to the workers.

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Welcome to Bush Amerika!