Monday, March 11, 2013

An Interesting Comparison

Via Random Eyes: Corporate Profits and Personal Income, pinned at 1960:

FRED Graph#4kX


Clonal said...

I modified your graph to divide by the CPI, and added one more item Average Hourly wage of non supervisory workers

See Graph

Clonal said...

Made all indices pinned to 1964-01-01 Here

The Arthurian said...

The PI curve turns into a straight line when you divide out the price increases. Interesting.

If real PI is uphill and the real Average Hourly Wage is flat... What does this tell us? That all growth can be attributed to population growth? Or rather, to changes in the employment:population ratio?

Clonal said...

Two answers to your question. Population, increase in emratio, more hours worked per person, the rentier tax that you talk about - interest paid on private debt. And finally higher compensation to top management of corporations.

Luke Smith said...

The best way to payout corporate profits is through dividends; this way, profits can be spent before people realize you are insolvent, and hopefully it is spent before you are bankrupt.

Clonal said...


I have added in the effects of hours worked per week, population and the emratio at Graph gvs