United States rich get richer


This video is called Decline of Middle Class: Wealth / Income Distribution in USA, Plutocracy.

By Andre Damon in the USA:

Amid mass unemployment, corporate profits surge

11 May 2012

Amid deepening poverty and unemployment for masses of American working people, the largest US corporations once again posted record profits last year.

Fortune magazine released its ranking of the 500 biggest US corporations Monday, which showed that they received a record-breaking $824 billion in combined profits in 2011, up 16 percent from 2010.

But despite having more money than ever, companies are refusing to invest and hire. Instead, they are paying out record bonuses to executives and hoarding what remains in cash.

The average CEO took home $12.14 million in 2011, up from $12.04 million in 2010 and $10.36 million in 2009, according to a report by the Economic Policy Institute published earlier this month.

The ratio of CEO pay to workers’ wages has also risen steadily, according to the report. The average CEO received 231 times in as much pay as the average worker in 2011, up from 228 times in 2010 and 193 times as much in 2009. It is rapidly making its way back up to the pre-crisis peak of 383.4 times the average worker set in 2000.

The money left over after the executives had stuffed their pockets was simply hoarded. Last year, corporations held $1.8 trillion in cash, up from $1.6 trillion in 2010, and nearly double the amount that they held in previous decades.

This hoarding of cash has come at the expense of productive investment. Over the past ten years, the share of corporate assets used for investment fell by a third for major corporations, while the portion of assets held as cash doubled, according to a report by the International Labor Organization published earlier this month.

The Battle Over CEO Pay: When the Top 1 Percent Take on the Top 0.01 Percent. Salvatore Babones, Truthout: “By all accounts, America’s corporations are doing better than ever. Corporate profits are at all-time record highs. Corporate taxes are at record lows. So, why are the top 1 percent so angry? It may be because America’s ever-rising inequality has finally caught up with them…. They’re not used to making sacrifices. As the top 1 percent start to share at least some of the indignities suffered by the other 99 percent, it is likely that their quiescence about rising inequality will start to change”: here.

Over 200,000 to lose unemployment benefits in US this weekend: here.

FDIC: Bank Profits at Highest Level Since 2007: here.

5 thoughts on “United States rich get richer

  1. I used to think that stockholders would eventually rebel against the exorbitant salaries but that’s not the case. They keep voting for the same Board of Directors which keeps awarding large salaries to the company executives. Doesn’t make sense to me.

    Like

  2. Pingback: US CEO’s get richer, poor get poorer | Dear Kitty. Some blog

  3. Pingback: United States rich getting richer | Dear Kitty. Some blog

  4. Pingback: The USA, a democracy? Noam Chomsky asks | Dear Kitty. Some blog

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