Corporate Profits vs. Wages Disparity

SOURCE www.marketwatch.com
Corporate profits are near all-time highs, while wages are near lows. U.S. corporate profits and asset prices are at historic levels, while budget and trade deficits are also high. Wages are near their lowest ever as a share of GDP.

Key Points

  • Corporate profits and asset prices are near all-time highs.
  • Wages are near their lowest ever as a share of GDP.
  • Budget and trade deficits are at historic highs.

Pros

  • High corporate profits can lead to economic growth and investment.
  • Investors may benefit from increased corporate profits.

Cons

  • Low wages can lead to income inequality and social unrest.
  • Decreased purchasing power for workers.