Wednesday, January 15, 2014

US Wage Growth versus Corporate Profits

I was asked if I could chart the change in US Wage Growth versus Corporate Profits.   The chart below shows the results.   Notice how Corporate Profits and US Wages rose in tandem from the mid 1950's through the late 1960's.  However after that things began to change as US Wage Growth began to trend downward while Corporate Profits continued to rise.   Currently there is a huge divergence between the two so as I said in the previous post something is going to give soon.


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