Chart of the Day: Corporate profits up, wages and salaries down

click to enlarge

The purple line on the chart tracks corporate profits after taxes as a percent of GDP, compared to the series' average. The green line does the same, but for wages and salaries disbursed.

When the line crosses above zero, the figure is above its historic average. Below zero is below average.

Corporate profits after taxes have been above average since the fourth quarter of 2003, with the notable exception of the second quarter of 2008 (aka, the financial crisis). By contrast, wages and salaries disbursed have been below their historic averages continuously since the second quarter of 2001.

Update: I've reworked the chart, focusing on the data since the year 2000:

 

click to enlarge

sources:

  1. For Business, Golden Days; For Workers, the Dross
  2. Profits Are High, Wages Are Low and Taxes Are Below Average

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