Tuesday, June 26, 2012

US corporate profits hit all time high, wages an all time low. There's an answer

From Business Insider, a dramatic headline:
Corporate Profits Just Hit An All-Time High, Wages Just Hit An All-Time Low
And just look at those graphs. For a sector awash in corporate profits, and in an era when austerity has been repeatedly shown to be the wrong answer, there is a simple solution, Here. This looks at the counterpart of super-high corporate profits - large corporate cash piles, sitting idle, and notes that:
"Corporate taxes transfer money away from a sector (corporations) that lets it sit idle, into the hands of a sector (government) that puts it straight to work – educating children, building roads and so on. Corporation taxes and appropriate spending are exactly what Britain [and many other countries need] right now."
So the current focus on rabid corporate tax-cutting, as practiced by the UK and various other countries, is just silly.


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