Listen carefully – hear anything? Neither do I, but you’d think by now, after all those tax cuts and corporate handouts, the giant trickling sound would be louder than the giant sucking sound Ross Perot predicted. I don’t hear a thing.I read in Marketwatch.com that Corporate profits are up 21.3% for the last year and before-tax profits rose to 11.6% of national income in the fourth quarter of 2005, which is the biggest share since the summer of 1966 and you’re probably seeing these figures all over the place as a justification of the Bush administration’s gang rape of the economy, but unless your last name is Inc. you’re probably not going to feel the moisture. This rising tide has left most boats high and dry. The share of national income going to wage and salary workers has fallen to 56.9%. Except for a brief period in 1997, that's the lowest share for labor income since 1966.
Comparatively little of this gain is being pumped back into capital spending despite the special tax breaks that the Republican lie machine said were supposed to boost investment. Fixed business investment has been falling steadily.
Less than honest apologists for the looters in
Still we get daily headlines like: S&P posts biggest first quarter gain since '99 and Markets close the best first quarter in years but is this really a sad story dressed up like a jeweled elephant? Corporations are making more money but those Americans who still work for those corporations aren’t. In 1999 we had a large budget surplus, today we have an incomprehensibly huge debt and the bubble of leveraged consumer spending may be about to burst as interest rates rise and real estate prices stagnate or fall.
The next time you watch Judge Judy or Jerry Springer and laugh at the poor fools who just can’t stop making excuses for lying, cheating and abusive spouses; think twice. If you support Ali Baba Bush and his gang of thieves, the joke’s on you.