Wednesday, December 1, 2010
If this is capitalism, who needs it!
Capitalism is best? For whom?
In this country we hear the constant cheering for capitalism, even by people who, amazingly, have lost their jobs or are struggling. Yet, if some of them just simply took a break from all that cheering and focused in on what has really been going on I wonder if they'd be so enthusiastic about picking up the pom poms.
Here's a snapshot of capitalistic America without the blinders of ideological rhetoric.
After tax corporate profits are currently at an all-time record high above $1.4T. In the past two years alone, profis have zoomed up by $800 bln.
Yet the nation's economy is limping along at barely 2.0% growth--well below our capabilies--and unemployment is at 9.6%, up from 5.0% just two years ago even though profits have grown by the better part of $1 trillion.
The stock market is 14% below its 2008 peak and 20% below its all-time high so stock investors have not been rewarded by this capitalist explosion.
Dividends are down by $150 billion in that time, meaning that yet again, investors have not been rewarded.
Real earnings of workers are lower now than they were in 2008 and still below the level they were in 1968 on an inflation adjusted basis!
In the past 10 years corporate profits have increased by 174% and the unemployment rate has INCREASED by 144%
So, where's all the money going? To salaries and bonuses for a small percentage of people at the top.
That's capitalism. Nice system, huh?