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The share of the national income going to corporations is at its highest level since 1950, and the portion going to individuals is near its lowest since 1966. Other parts of national income include proprietors and rental income.
Here's another measure for the corporations-over-people trend: In the third quarter of 2012, corporate profits were the highest percentage of the national income they've been since 1950, while personal income was around its lowest point since 1966. As if massive income and wealth inequality among individuals wasn't enough. Don't look to corporations to give a damn about wage stagnation, unemployment, or really anything going on in the American economy:
With $85 billion in automatic cuts taking effect between now and Sept. 30 as part of the so-called federal budget sequestration, some experts warn that economic growth will be reduced by at least half a percentage point. But although experts estimate that sequestration could cost the country about 700,000 jobs, Wall Street does not expect the cuts to substantially reduce corporate profits — or seriously threaten the recent rally in the stock markets.

“It’s minimal,” said Savita Subramanian, head of United States equity and quantitative strategy at Bank of America Merrill Lynch. Over all, the sequester could reduce earnings at the biggest companies by just over 1 percent, she said, adding, “the market wants more austerity.”

Everywhere you look, there's another measure of the massive inequality that's reshaped our society, leaving 90 or 95 or 98 or 99 percent of us out in the cold. It's a blend of corporations that care about nothing but short-term profit even at the expense of long-term economic stability, policymakers who write the primacy of corporations and the wealthy into law at every turn, and a too-quiescent public. Here's another reminder, teeing off from the expiration of the payroll tax cuts:
Wall Street Bonuses: Up 8% last year. Average US Personal Income: Down 3.6% last month. Sequester Inanity  Quotient: Unchanged
@nomiprins via web
At this point you'd almost have to welcome machines trying to take over the world—at least someone would be giving the banks and bankers a run for their money.

Originally posted to Daily Kos Labor on Mon Mar 04, 2013 at 01:20 PM PST.

Also republished by Daily Kos Economics, Income Inequality Kos, In Support of Labor and Unions, and Daily Kos.

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Comment Preferences

  •  Machines would at least break occasionally. (5+ / 0-)

    The Corporation is an immortal being which has no physical body.

    Therefore, it can not feel pain (Feedback), understand beings which do, or be defeated by them.

    However, there is one way to get rid of them.  Much like the boogey man, we simply have to stop letting the concept exist.  Once we do, they lose all power.

    I don't blame Christians. I blame Stupid. Which sadly is a much more popular religion these days.

    by detroitmechworks on Mon Mar 04, 2013 at 01:27:46 PM PST

  •  NYT article.. (1+ / 0-)
    Recommended by:
    Words In Action
    Recovery Is Lifting Profits, but Not Adding Jobs

    Budget cuts could cost about 700,000 jobs, but Wall Street doesn’t expect to see a big effect on corporate profits.

    Be the change you want to see in the world. -Gandhi

    by DRo on Mon Mar 04, 2013 at 01:45:44 PM PST

  •  Listen up, America: the Markets want more (5+ / 0-)

    austerity.  Get a clue. Wake up and smell the feudalism.

    "Well, yeah, the Constitution is worth it if you succeed." - Nancy Pelosi // Question: "succeed" at what?

    by nailbender on Tue Mar 05, 2013 at 08:06:26 PM PST

  •  You know what (1+ / 0-)
    Recommended by:
    wbr

    It's very unfortunate that we live in a country/bubble that determines that the economy is only going well when corporate profits or corporate stock rise to unprecedented levels. Even though we claim to be in a capitalistic society, interpretations of how the economy is doing seems to be more focused on corporations rather than consumers.

    #ConstructNotObstruct http://polliticstoday.wordpress.com

    by RVKU on Tue Mar 05, 2013 at 08:08:03 PM PST

  •  "The market" (3+ / 0-)
    Recommended by:
    JML9999, wbr, Simplify

    According to the Very Serious Financial Persons mentioned in the article, evidently won't be happy until workers are fighting over whatever few jobs are available.
    The goal is to drive down wages, and austerity is the vehicle.

  •  Corporations are machines (4+ / 0-)
    Recommended by:
    BlueJessamine, wbr, Mark Wallace, Simplify

    They care zero for anything other than their survival and growth.  They fund their political strategy.  They do it because they can.  Their food is profits.  Living machines, not human.  With their own consciousness, but machines.

    A meta-organism that sees us as objects.

    There are exceptions.

    Daily Kos an oasis of truth. Truth that leads to action.

    by Shockwave on Tue Mar 05, 2013 at 08:29:02 PM PST

    •  They are "AI's" (2+ / 0-)
      Recommended by:
      Shockwave, jhop7

      Modern corporations, with their extensive IT operations and communications infrastructure, are, effectively, artificial intelligences. For those that think AI's are a scary thing in the future, consider that we are living with them right now.

      It is more correct to say that corporations are "hybrid" AI's, because they involve human components to perform tasks that are not easy to automate. However, corporations are generally not controlled by human volition. The decision making process of a corporation is nothing like the normal process of human decision making. Corporate volition can, and often does, lead to outcomes that would never be preferred by any human decision maker within the corporation.

      As time goes on, we will see the human components of corporations be progressively disempowered by the automation that surrounds them. There will not be any clear tipping point where corporations become AI's like in a sci-fi plot, it will just evolve naturally as the human elements of corporations become less critical.

      •  You put that very well, (1+ / 0-)
        Recommended by:
        Mark Wallace

        been ruminating along those lines a while myself.
           Meanwhile, international activities make them almost impossible to get a legal handle on. Whole countries, us included, are already acting like individual US states do to try to bring in business: basically begging to be taken advantage of.
           Ironically, many companies have put a "human touch" on things by letting a real person tell you over the phone how much you owe, or that your procedure isn't covered.

  •  Less worker pay despite record profits (1+ / 0-)
    Recommended by:
    LMS44

    So where's the trickle down?

    Bush 41 has been proven right again. It was voodoo economics in 1980, just as it is today.

    With our economy 70% consumer driven, at what point will it become obvious to everyone that less worker pay stagnates the entire economy?

  •  ahh, but you forget my friend (0+ / 0-)

    corporations are people

    problem solved

    now if only we could make them into Solent Green when they die

    except they don't
    and we can't

    "a lie that can no longer be challenged becomes a form of madness" -Debord

    by grollen on Tue Mar 05, 2013 at 11:05:54 PM PST

  •  Nice to see this on the front page here... (0+ / 0-)

    This is the defining issue of the industrial era.

    Great piece, LC.

    Democracy - 1 person 1 vote. Free Markets - More dollars more power.

    by k9disc on Wed Mar 06, 2013 at 03:20:17 AM PST

  •  And, btw, I just took a look at the About DKos (0+ / 0-)

    link.

    Pretty impressive list of writers.

    Democracy - 1 person 1 vote. Free Markets - More dollars more power.

    by k9disc on Wed Mar 06, 2013 at 03:23:29 AM PST

  •  I'll Be Sure To Take This Info With Me (0+ / 0-)

    The next time I talk to my boss about a raise. This will make hearing the equivalent of "go fuck yourself" that much sweeter.

    I don't know what the answer is. All the cards are in the hands of the employers and corporations and the worker is simply told, "Be happy you have any job at all".

    This head movie makes my eyes rain.

    by The Lone Apple on Wed Mar 06, 2013 at 03:48:04 AM PST

  •  Wealth over labor (0+ / 0-)

    You know who controls and runs this country when according to the viral video on income inequality says that top 1% own 50% of investments in WALL Street.

    Yet most of the country-bottom 50% of country -own less than .05 of the investments in it.

    So what is screaming in my ear daily from the plutocrats media beside especially this week....

    Record Highs on Wall Street and the Dow!!!!

    The game is rigged, the plutocrats have waged war and captured our country....subliminal message...value wealth over labor. Wealth over people

    Government of, for, and by the wealthy corporate political ruling class elites. We are the 99%-OWS.

    by emal on Wed Mar 06, 2013 at 03:57:18 AM PST

  •  They've created a "Money Desert" (0+ / 0-)

      Which is why the stimulus was less effective than anticipated.
       Money doesn't go through as many hands as it used to before it goes into the hands of money hoarding businesses and one-percenters, so it creates much less economic activity. Almost like the infamous "rain that evaporates before it hits the ground."

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