What’s eating the world…

The way satan feeds and rewards his children… and yes, if they continue to be allowed to live, then God Almighty’s children will continue to die…   —Editor
Psalm 53:4 (NIV)
… Do all these evildoers know nothing? They devour my people as though eating bread; they never call on God…
corporate greed
Article below is from www.cryptogon.com

Why Are U.S. Corporate Profits So High? Because Wages Are So Low

January 27th, 2014

Automation is the key, but this piece doesn’t mention it.

The companies have, “Still managed to boost profits beyond anything ever seen before because they’ve got away with employing as few workers as possible at as low a rate as possible.”

I’ve got news for Jamie McGeever at Reuters: Companies only ever employ as few workers as possible at as low a rate as possible.

How, then, are companies managing to keep increasing profits with fewer people?

Race Against The Machine: How the Digital Revolution is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy by Erik Brynjolfsson and Andrew McAfee

The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies by Erik Brynjolfsson, Andrew McAfee

Smart Machines: IBM’s Watson and the Era of Cognitive Computing by John E. Kelly III and Steve Hamm

Jobocalypse by Ben Way

Eventually, all of this hits the wall because there aren’t enough people with enough income to keep consuming stuff.

In any event, with one in seven people requiring the dole to avoid starvation in the U.S., I think it’s safe to say that we’re not going to get the Star Trek package when it comes to how all of the whiz-bang technology is impacting society.

Via: Reuters:

U.S. businesses have never had it so good.

Corporate cash piles have never been bigger, either in dollar terms or as a share of the economy.

The labor market, meanwhile, is still millions of jobs short of where it was before the global financial crisis first erupted over six years ago.

Coincidence?

Not in the slightest, according to Jan Hatzius, chief U.S. economist at Goldman Sachs:

“The strength (in profits) is directly related to the weakness in hourly wages, which are still growing at just a 2% nominal pace. The weakness of wages and the resulting strength of profits are telling signs that the US labor market is still far from full employment.

Companies have not been unable to raise prices much because of the economic recovery has been fragile. But they’ve still managed to boost profits beyond anything ever seen before because they’ve got away with employing as few workers as possible at as low a rate as possible.

Deuteronomy 32:43 (NIV)   Especially if He is asked to carry out His vengeance…
… Rejoice, you nations, with his people, for he will avenge the blood of his servants; he will take vengeance on his enemies and make atonement for his land and people…

Advertisements