10 Charts of 2012: Corporate Profits at All-Time High

Source: Business Insider

Source: Business Insider

This chart, from Henry Blodget at Business Insider, shows that corporate profits as a percent of GDP are at an all-time high.  This is occurring as wages are stagnating for most Americans — more on this in the remaining charts,

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4 Responses to “10 Charts of 2012: Corporate Profits at All-Time High”

  1. From people I know in high places who are into corporate expansion, profits are up and they are being sat upon, because the future is so bleak. We have a Senate that can’t make a budget, a President who has never had to meet a bottom line and thinks a balance sheet is something you throw in the dryer, and you see businesses sitting, waiting, hoping for some sign that expansion won’t be the riskiest move they’ve ever made. Uncertainty breeds stagnation. And we have it more than ever. We’ve hit the debt ceiling ahead of schedule, we haven’t balanced a budget since this clown took office, and taxes and Obamacare are set to wreak unholy havok on our economy, and people wonder where the investments are? Duh! I have a good friend whose company is in a graet cash position, and they are ready to expand, but he can’t recommend they move an inch. Why? A total and complete uncertain future. Unprecentdented debt forecasts. Why would you invest right now when the promise for returns do not exist?

    • Perhaps you can name a time where there’s been certainty in business? Never has happened and never will. Uncertainty is a canard. The problem is lack of demand in the economy. Unfortunately for Republicans, you can’t solve a demand-side crisis with supply-side solutions.

      • I can tell you right now, that the business I speak of has put expansions on hold, because the economic uncertainty that exists. Right now, they are better suited to invest excess profits in various funds because the risk of failure of return is greater with thier own expansion, rather than sitting on it and collecting nearly guaranteed returns.

        • Uncertainty of demand exists today. The reality is that whether we cut Medicare for people a decade down the road has little to do with the current economic situation. It’s only narrative that leads us to believe this is so — it’s not rational economic thinking.

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