Corporate Profits Hit Record High

It's hard out here for a Job Creator.

(via Fortune)

NEW YORK (CNNMoney) -- Just four years after the worst shock to the economy since the Great Depression, U.S. corporate profits are stronger than ever.

In the third quarter, corporate earnings were $1.75 trillion, up 18.6% from a year ago, according to last week'si gross domestic product report. That took after-tax profits to their greatest percentage of GDP in history. [...]

Profits accounted for 11.1% of the U.S. economy last quarter, compared with an average of 8% during the previous economic expansion. They fell as low as 4.6% of GDP during the recession.

If after-tax profits have reached their highest point in history, does that mean they can afford to pay a little more? No?

Wages are also at their lowest share of GDP in history, so it hardly seems fair to argue that "costs" or "uncertainty" are as big of an impediment to business as Corporate America would like you to believe.

  • gescove

    According to the Economic Policy Institute, in the two decades between 1979 and 2009 US workers’ productivity increased by 80 percent while median workers’ wages went up only 10 percent. Corporations continue to game the system to avoid paying taxes, secure billions in subsidies, socialize their risks, and exploit discounted labor (both here and abroad). So… profits!

  • Michael Norris

    Barack Obama–that fuckin’ socialist!

  • Rich Morgan

    Of course profits are high. Payrolls have been flat for years.

  • trgahan

    But Obamacare is supposed to take all that profit (and then some apparently) by 2014!

    • bphoon

      Yeah. I have a brother-in-law who owns a small sales company and who insisted during the ACA debates that it would put him out of business. Flat out, no exceptions, if the ACA were passed, it would put him out of business due to increased costs.

      I learned two weeks ago through my wife that he just closed on the purchase of a building in which to house his growing company…so, you know, Obama’s destroying our economy, obviously.

      • Victor_the_Crab

        I hope you remind him about that.

  • Draxiar

    Wow! So now the GOTP can claim that IF trickle down economics actually worked we’d have no unemployment right now! WOOHOO! Let’s hear it for the Gipper! Reagan has gone from Saint to Demigod!

  • muselet

    Gee, imagine how much better corporate profits would be if it weren’t for all the socialism that’s destroying America. *rolls eyes*