5 Comments

  1. Less Power to The People November 21, 2007 @ 5:59 pm

    […] The Politics of Debt added an interesting post on Less Power to The People […]

  2. Anonymous November 21, 2007 @ 9:36 pm

    Label your y-axis. Without one, your graphs truly fail to make any point whatsoever. Are you starting at zero, or some other value? Did you use a linear scale, logarithmic scale, or some other scale? Since I can’t tell, I’m forced to assume the information is not reliable.

  3. Anonymous November 21, 2007 @ 9:44 pm

    You want to assume the information is not reliable because you are fanatical. It is a known issue that when fanatical people are faced with the truth they will deny reality, rather than admit their errors.
    Don’t worry, he made the data available for you but you don’t need to check it.
    Keep dreaming, keep dreaming, everything is alright…

  4. Franklin November 21, 2007 @ 9:52 pm

    Anonymous, the y axis in the first chart is billions of dollars in chained 2006 dollars (you can see the exact data on the spreadsheet or the web site).
    The use of linear or logarithmic scale is irrelevant. I don’t understand why you worry about it.
    It is easy. Compare in the official GDP data (http://www.econstats.com/gdp/gdp__q9.csv) the column for Compensation of employees paid with the column for Profits after tax with inventory valuation and capital consumption adjustments.
    I am sorry you don’t like what you see, but if you have better data than the government I will be happy to analyze it.

  5. Melissa November 30, 2007 @ 5:52 pm

    It is obvious of course that this article is correct money is being transfered from individuals to corporations. And recent legislation only helps in this matter. I agree with everything from this article.
    The thing to keep in mind as individuals is that you really do have some power in this. The reason corporations are getting our money is because we are giving it to them. Buying things we don’t really need and buying it on CREDIT. Which is really just another tax we choose to place upon ourselves and goes directly to those big corporations.
    If we as a country had individuals who were educated as to how money and the govt really work we wouldn’t have this problem.
    Blaming the govt. who is certainly doing immoral things, will not fix this. Until there are enough people who are upset enough to educate themselves as to our actual state there is little that will change.
    Do your best to spread change through educating yourself!

Transfer of Wealth from Individuals to Corporations

Democracy, Economics Comments (5)

If Money is Power, the official data shows that the Bush administration has transferred power from the people to corporations at an alarming rate.

Compensation Vs Corporate Profits

The above chart shows the widening gap between corporate profits and salaries. If you want to see how dramatic this widening gap is, take a look at the following chart.

Rate of Deviation Compensation Vs Corporate Profits

The curve represents the differential between Compensation of employees paid and Corporate Profits (before and after tax), which shows the transfer of wealth from employees to corporations. As you can see, the Bush administration shows a dramatic change in the transfer of wealth from workers to corporations.

Another notable trait of this chart is that after the tax cuts the gap between after taxes and pre-taxes transfer of wealth widens, which indicates that the tax cuts do not help corporations at all, actually it seems to hurt them. The reasons for this enormous transfer of wealth are increases in productivity (exploitation of labor, or in corporate terms "doing more with less"), the continuous threat on American workers of shipping their jobs overseas (which effectively prevents discussions over salaries increases), and the low savings rates of the American families, which forces them to work for any salary provided they can make enough to service their debt.

These charts were created with official data from http://www.econstats.com. You can download the raw data file here.

Happy Thanks Giving!

Franklin @ November 21, 2007

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