November 27, 2011 11:30 AM
Proving the 99% right
By Steve Benen
When it comes to the circumstances that help drive the Occupy protests, Floyd Norris shines a light on a dynamic that speaks volumes. To put it simply, this just won’t do.
In the eight decades before the recent recession, there was never a period when as much as 9 percent of American gross domestic product went to companies in the form of after-tax profits. Now the figure is over 10 percent.
During the same period, there never was a quarter when wage and salary income amounted to less than 45 percent of the economy. Now the figure is below 44 percent.
For companies, these are boom times. For workers, the opposite is true.
The previous record for corporate profits as a share of GDP was 8.98% — set in 1929. Last year, it was over 9.5%. This year, it’s over 10%.