I must admit to not knowing the cause of this recent run up (though I recall something about being able to repatriate profits from overseas at a certain tax rate lowered by GW? Anybody know if that's correct?)
Regardless that chart has just got to anger the living patoots out of the left.
The American Jobs Creation Act of 2004 (regarding foreign cash repatriation) expired at the end of 2005. Not sure if new Act was implemented but I don't believe so.
ReplyDeleteOne word: war
ReplyDeleteThose evil corporations are always squeezing the money out of poor working middle class.. Though I will enjoy my 10K+ bonus check this year from the better than expected Sales growth & EPS growth! :)
ReplyDeleteI guess those libs are talking about the other “poor working middle class”
Yo Captain,
ReplyDeleteSince the GDP is growing at a pretty good clip these days, that's 10% of an ever-expanding number. Very depressing indeed for the inevitable trimph of socialism.
That trough in 1986 is nonetheless strange. Any ideas why that might have been?
Well, even as a right-of-centrist I could wish for a larger share going to wage slaves like me.
ReplyDeleteThe repatriation idea fits. Corporate profits are at an all time high in relation to GDP, but median incomes of wage earners has been stagnant. That's because you invest those profits abroad instead of within the country. So those profits are not stimulating domestic investment. Instead, it goes overseas, where wages are even lower, and thus profits even higher. Some sort of virtuous circle at work.
ReplyDeleteThe repatriation idea fits. Corporate profits are at an all time high in relation to GDP, but median incomes of wage earners has been stagnant. That's because you invest those profits abroad instead of within the country. So those profits are not stimulating domestic investment. Instead, it goes overseas, where wages are even lower, and thus profits even higher. Some sort of virtuous circle at work.
ReplyDelete"So those profits are not stimulating domestic investment. Instead, it goes overseas, where wages are even lower, and thus profits even higher."
ReplyDeleteDon't foreigners have a thing for investing in the US, though? It'd be interesting to see how much of the average US worker's income goes into investment in the US vs the amount that the average Japanese worker invests in the US.