Tag Archives: corporate earnings

Real Household Incomes: How Goes the Recovery?

Doug Short has written a great article on median U.S. household income through time.  He shows that the median household income in the U.S., adjusted for inflation, has fallen by 7.2% since 2000 and is 7.9% below the peak reached near the start of 2008, as we entered the last recession.  How do we reconcile this with the notion of an economic recovery? Continue reading

The X-factor for Unemployment Rates

With unemployment staying fairly high and steady, despite massive economic stimulus, many are wondering what it will take to create more good jobs in America.  One explanation is simply that the fastest growing and most innovative American firms simply don’t need all that many employees.  Even industries that have historically needed lots of workers are becoming automated.  An excellent book that explores this theme is Race Against the Machine, by two professors at MIT.  An article that provides a summary of the book’s thesis is available here. Continue reading

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