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Look at the graph again, work growth seem to be approaching a maximum, with it slowing heavily in the last few decades while corporate profits seem to be follow
by mattmanser 13y ago
Look at the graph again, work growth seem to be approaching a maximum, with it slowing heavily in the last few decades while corporate profits seem to be following an exponential type growth with a temporary drop in the recent recession.
Intentionally or not, your graph is incredibly manipulative, including not choosing a base-line zero on the y-axis for corporate profits which hides that exponential type growth.
- yummyfajitas 13y agoWhat I see is corporate profits are volatile, whereas comp increases steadily. And they don't seem to move together - i.e., a spike in corporate profits doesn't correspond to a drop in wages, or vice versa. The axes are just whatever the federal reserve site does by default. The baseline is also irrelevant to the main point - compensation and corporate profits don't seem to move together. (This fact should not be surprising at all, since sticky nominal wages are the cornerstone of most modern macroeconomic theories.)