Monthly Archives: March 2013

Implications of Robust Corporate Profits and Stagnant Wages

One of the most important economic trends to emerge in recent years is that gains in corporate profitability are not translating to wage increases or more hiring.  The New York Times just published an article on this disconnect, but it’s nothing new.  The basic story is simple.  Even as corporate profits have increased at a healthy clip, there has not been a similar gain for workers in terms of new hiring or increased compensation for current employees.   Continue reading