American corporations have most profitable quarter ever

[RecycleMichael]

I know this is hard to believe with the anti-business democrats in charge of the House, Senate and the White House. Which political party is better for American Corporations? The democratic party.

http://www.nytimes.com/2010/11/24/business/economy/24econ.html?_r=2

The nation's workers may be struggling, but American companies just had their best quarter ever.

The New York Times

American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or noninflation-adjusted terms. The government does not adjust the numbers for inflation, in part because these corporate profits can be affected by pricing changes from all over the world and because the government does not have a price index for individual companies. The next-highest annual corporate profits level on record was in the third quarter of 2006, when they were $1.655 trillion.

Corporate profits have been doing extremely well for a while. Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history. As a share of gross domestic product, corporate profits also have been increasing, and they now represent 11.2 percent of total output. That is the highest share since the fourth quarter of 2006, when they accounted for 11.7 percent of output.

This breakneck pace can be partly attributed to strong productivity growth — which means companies have been able to make more with less — as well as the fact that some of the profits of American companies come from abroad. Economic conditions in the United States may still be sluggish, but many emerging markets like India and China are expanding rapidly.

Tuesday's Commerce Department report also showed that the nation's output grew at a slightly faster pace than originally estimated last quarter. Its growth rate, of 2.5 percent a year in inflation-adjusted terms, is higher than the initial estimate of 2 percent. The economy grew at a 1.7 percent annual rate in the second quarter. Still, most economists say the current growth rate is far too slow to recover the considerable ground lost during the recession.

"The economy is not growing fast enough to reduce significantly the unemployment rate or to prevent a slide into deflation," Paul Dales, a United States economist for Capital Economics, wrote in a note to clients. "This is unlikely to change in 2011 or 2012." The increase in output in the third quarter was driven primarily by stronger consumer spending. Wages and salaries also rose in the third quarter, which might help bolster holiday spending in the final months of 2010. Private inventory investment, nonresidential fixed investment, exports and federal government also contributed to higher output. These sources of growth were partly offset by a rise in imports.

[heironymouspasparagus]

It has always been that way, but we have fallen into the trap of embracing the "Big Lie". 

Repeat that lie enough and people will believe it in spite of facts put in front of them.  Like "cut taxes" lie.  Like the "trickle down" lie.  Like so many from the you-know-who's.

[Conan71]

Oh so we should be angry at the Dims for coddling big business while crapping all over the workers, eh?

Previous best quarter? Q3, 2006 just before the mid-terms, only that was at near full employment.

Pretty easy to turn great profits with low inventories, small workforces, and fewer competitors. Oh yeah, let's not forget more outsourcing the last four years too

[Gaspar]

Cut workforce.  Make more profit.  Hundreds of thousands of businesses gone, very little competition.  Make more profit.

Lean is mean, it always has been.  The downside of this is the cause. . .medium to small businesses failed completely.  The small businessman/woman has become more endangered.  Banks are happy to loan to big companies, but not to mom & pops.  As I said several months ago, big companies like Obama because he is a corporatist. 

The only industry that bloated it's workforce, increased salaries and reduced production was the federal government.  Perhaps again they could learn from the private sector?

[heironymouspasparagus]

And the bloated Federal workforce lie raises its head again!  Amazing.

[custosnox]

And the bloated Federal workforce lie raises its head again!  Amazing.

TSA?

[nathanm]

TSA?

See my post in the tax cut thread with illustrative graphs. TSA is a drop in the bucket, as worthless as they are. They waste a lot of money, but it mostly doesn't go to employing people.

[Quinton]

Did any of the Liberal anti Capitolist ever go to a homeless or poor person to get a job ? That need to get over tham selves.

[custosnox]

See my post in the tax cut thread with illustrative graphs. TSA is a drop in the bucket, as worthless as they are. They waste a lot of money, but it mostly doesn't go to employing people.

They still managed a huge workforce growth in a short time once they were created.  I just flipped it out there as a quick, very media driven example.  It wouldn't take long at all to show many more area's of the government that has a lot more fat that should be trimmed.

[rhymnrzn]

I know this is hard to believe with the anti-business democrats in charge of the House, Senate and the White House. Which political party is better for American Corporations? The democratic party.

http://www.nytimes.com/2010/11/24/business/economy/24econ.html?_r=2

The nation's workers may be struggling, but American companies just had their best quarter ever.

The Slow Clap

http://www.youtube.com/watch?v=QhTiJEYqqY8

[Conan71]

See my post in the tax cut thread with illustrative graphs. TSA is a drop in the bucket, as worthless as they are. They waste a lot of money, but it mostly doesn't go to employing people.

43 to 47k current payroll depending on your source. $20k or so to train security agents, and approximately 120k or so hired since it's inception, or close to 80,000 trainees no longer working there.  Nevermind all the people hired at DHS in the wake of 9/11. Also consider all the pensions and health benefits.

I came across the article the other day I cant source and paste on my iPhone. If you are curious you know how to Google

Start counting the drops in the bucket and sooner or later you have a full gallon pail.

[nathanm]

Given that total governmental employment is over 22 million as of October, I stand by my assertion that it's a drop in the bucket. That said, I think TSA ought to go away on the grounds that it's useless, but the number of employees isn't that large a part of the government. (2.2% of the federal civilian workforce as of December 2009)

[Conan71]

Given that total governmental employment is over 22 million as of October, I stand by my assertion that it's a drop in the bucket. That said, I think TSA ought to go away on the grounds that it's useless, but the number of employees isn't that large a part of the government. (2.2% of the federal civilian workforce as of December 2009)

I believe your figure includes state and local employees.  If you are combining the total government workforce, it's an inaccurate metric as we are talking about federal level issues, not state, local, and federal.

Find a billion dollars of waste 100 times and suddenly you realize each "drop" really counts. 

Oh and good luck finding a "true" number on total federal workforce, it seems to be a dynamic target.  I just Googled one source which says 2mm not counting the postal service, and it's a fed web site.  I've read 4mm to 6mm non-military from other federal sites recently.  That's pretty scary when not even the gov't knows how many people work for it. 

http://www.bls.gov/oco/cg/cgs041.htm

[nathanm]

I believe your figure includes state and local employees.  If you are combining the total government workforce, it's an inaccurate metric as we are talking about federal level issues, not state, local, and federal.

Find a billion dollars of waste 100 times and suddenly you realize each "drop" really counts. 

Oh and good luck finding a "true" number on total federal workforce, it seems to be a dynamic target.  I just Googled one source which says 2mm not counting the postal service, and it's a fed web site.  I've read 4mm to 6mm non-military from other federal sites recently.  That's pretty scary when not even the gov't knows how many people work for it. 

The Census Bureau tracks it, as of December '08 ('09 figures are not released yet..how useful), the federal civilian workforce at 2,788,886 and puts TSA at 61,556 (11,000ish of those are part time, FWIW). Those are the numbers I used to come up with the 2.2%.

[JeffM]

Did any of the Liberal anti Capitolist ever go to a homeless or poor person to get a job ? That need to get over tham selves.

 

"Feed the poor and get rich or feed the rich and get poor."

"There's no reason to be the richest man in the cemetery. You can't do any business from there."

--Colonel Harlan Sanders