Right-wing demagogues like to say that companies are not hiring because there is not enough capital, that they cannot raise wages because of the bad economy. New numbers are out that completely debunk that argument.
Research by economists from Northwestern University highlights just how big a piece of the pie the capitalists are taking. The study indicates that over a six-quarter period from 2009 to 2010, corporate profits grabbed 80 percent of the increase in real national income, while wages and salaries accounted for less than 1 percent of the growth in income.
In addition to these horrific facts, the Bureau of Labor Statistics found that real average hourly earnings by workers actually declined 1.1 percent over the same period. More than 14 million people are unemployed in the U.S. according to official statistics, while more and more people are falling deeper into poverty with declining wages and no job security. It is time we put people before profits.
