Tag Archives: stagnant incomes

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

Harvard’s Michael Porter Shares His Economic Outlook

Harvard Business School professor Michael Porter is a familiar name to almost anyone who has graduated from business school in the last twenty years or so.  He recently gave an interview on CNBC in which he shares his analysis of the U.S. economy.  Porter is best known for his work in competitive strategy, a field in which he is considered the preeminent expert, so his views of what ails the U.S. economy and how we can get back on track are of considerable interest.  He has analyzed the forces that provide one country or region with relative competitive advantages vs. others and he applies this perspective in his commentary. Continue reading