A Recorvery for CorpRat Profits, but Not for Workers

By LOUIS UCHITELLE

Published: December 21, 2003

THIS economic recovery is distinctly unkind to workers.

Output is clearly rising, and, normally, that would feed into both corporate profits and labor income. But while profits have shot up as a percentage of national income, reaching their highest level since the mid-1960's, labor's share is shrinking. Not since World War II has the distribution been so lopsided in the aftermath of a recession.

Profits, it turns out, never stopped rising as a share of national income all through the 2001 recession and the months afterward of weak economic growth. That did not change even as the recovery kicked in strongly last summer and hiring resumed. New data from the Bureau of Economic Analysis erases all doubt on this point.

The reasons for labor's poor showing are not hard to spot. The employment rolls are still smaller, by 2.4 million jobs, than they were at the recession's start in March 2001. Those who are employed are also feeling the squeeze, particularly the 85 million people who hold office or factory jobs below the rank of supervisor or manager. Their average hourly wage, $15.46, is up only 3 cents since July, according to the Bureau of Labor Statistics. That wage is rising at an annual rate of less than 2 percent, barely enough to keep up with inflation, mild as it now is.

"We have never seen in the 40 years that we have this hourly wage survey, wage growth that has been this slow,'' said Dean Baker, an economist at the Center for Economic and Policy Research.

That is unfortunate. Workers, after all, are also the nation's consumers. We are counting on their spending to turn the recovery into a first-class expansion. They must do that against the dead weight of reluctant hiring and miserly raises...


http://www.nytimes.com/2003/12/21/business/21view.html

I like it - CorpRats - perfect. I promise to use this from now on!

There are two really evil way to make a point here..

Massive numbers of consumers declaring bankruptcy at the same time

or

a massive REFUSAL to buy anything but necessities.. We all pretty much know that the "rich" have pretty much everything they need already.. It's the middle class and poor (because of the sheer numbers) who do most of the buying..

Let's see how long Walmart would be the huge company they are today, if people just said NO..

Most people have more clothes than they could ever wear.. Kids have more toys than they could ever play with..Houses are crammed to the rafters with STUFF..

I think an en masse bankruptcy filing would send a message ... the angst probably needs to grow larger

no wonder one of the first matters of this cabal's business was to make it more difficult to file bankruptcy (did that bill ever get out of either house?)

with consumer debt, declining wages, unemployment, etc. ... buying only things which are necessity ... may become (and, already is for many) the only choice ...

we do have power which can be harnassed if necessary

There will be lots of filings if and when it's about to pass.. I think there is a 6 month grace period, so watch those rosy economic figures come crashing to a halt when that happens..

Lots of people are living on plastic, and sooner or later it will end.. When it does, they will be better off because they will have to pay with cash, but the banks will take a HUGE hit..

People will protect their homes and continue to pay the mortgages, but they will dump all the rest of their debts..

Big copanies do it all the time, and consumers will too as long as they can..