Where Are the Jobs? Corporate Profits Soar to 18-Year High
March 17, 2011
(ChattahBox Business News)–Great news for the investor class! Not only are corporations sitting on record levels of cash, for the first time since 1993, profit margins are soaring. Woohoo! Break out the Cristal. But regular middle-class folk won’t be celebrating. The poor will continue to get poorer, while the rich get richer. While WallStreeters will cash-in with obscene bonuses and investors will receive dividend checks in the mail, the rest of us will continue to slog through a sluggish economy and high rates of unemployment. You would think that now that corporations are flush with cash again, they would start hiring American workers soon, right? Uh, no, think again. The only new hiring is taking place overseas, where the wages are lower. And where do you think the corporations are holding their cash? Overseas in tax-free havens, that’s where.
Bloomberg has the great news for the wealthiest two-percent of Americans:
“Record earnings fueled by the highest profit margins since 1993 are giving executives more leeway than ever to boost dividends as the bull market enters its third year.
Margins will climb to 8.9 percent in 2011, the highest level in at least 18 years, according to data compiled by Bloomberg on non-financial companies in the Standard & Poor’s 500 Index through March 11. Greater profitability combined with dividend cuts during the credit crisis have pushed earnings to 6.53 percent of the gauge’s price, or 3.5 times more than its payout rate, close to the record 3.6 multiple in January.”
There used to be a time in our country when high profit margins for corporations resulted in a boost for the middle class with jobs. Those days are long gone. Multinationals driven by greed, are now consumed with naked profits and tax avoidance. And businesses want to rape our planet of its resources, while poisoning our air and water, unfettered by pesky federal regulations and living wages.
“The situation is less encouraging for non-investors. Back in that banner year of 1993, the unemployment rate fell from 7.3% to 6.5%. According to the most recent figures released by the Bureau of Labor Statistics, the unemployment rate is 8.9%.”
Where are the jobs? Not here.
Photo Source: Wikimedia/U.S. Library of Congress/Public Domain.
h/t Think Progress