Corporate Profits Rise – but Wages Fail to keep Pace with Inflation
February 28, 2012
American corporations continue to enjoy healthy profit margins, while the average worker is watching inflation outpace wages.
Earnings for businesses began to rebound in early 2010 and have continued to do well ever since. By the third quarter of last year, pre-tax corporate profits climbed to a record $1.97 trillion.
Meanwhile, the consumer price index, which is used to measure the rate of inflation, reveals that inflation went up 2.3% from last year to now. During this same period, average hourly earnings climbed only 1.5%.