Corporate Exploitation: The FACTS about Retail and Labor and a Consumer Economy Derailed by Failed Reaganomics: ..the total spent on buybacks and dividends could have hired 5.47 million workers. ..panies have spent $290.7 billion this year on buybacks, which are aimed at decreasing the amount of available shares—or float—thus driving up stock prices. The Top 10% own 90% of all Stocks, so whos getting paid doesnt help the economy. Higher Tax Rates on the Wealthy reduce Wealth Inflation, reduce the temptation to hoard money, pay for the Infrastructure (which reduces overall inflation), pay for the Social Safety nets of a Civilized Humane Nation, and encourage Corporations to invest more in Wages, Plants and Equipment in lieu of paying those higher top tax rates. Companies Spending Cash on Investors, Not Workers By Jeff Cox 5 Jun 2013 Companies flush with cash remain reluctant to hire or make capital purchases, choosing to reward investors rather than expand their businesses. Recent economic data exemplify the trend: Private payrolls grew by just 135,000 during May, according to ADP, while employment components both for the Institute of Supply Managements manufacturing and nonmanufacturing indexes show a flat jobs outlook. The grim hiring prospects come as nonfinancial firms hold nearly $1.8 trillion in cash on their balance sheets. Rather than look to expand, though, theyve chosen to participate in aggressive share buybacks and dividend increases to reward investors. According to TrimTabs, companies have spent $290.7 billion this year on buybacks, which are aimed at decreasing the amount of available shares—or float—thus driving up stock prices. That effort, at least, has been a success. The Standard & Poors 500 has gained more than 13 percent in 2013, led by big gains in financials and health care stocks. Worried about growth prospects, S&P 500 companies have been passing out dividend payments with a free hand as well, rewarding shareholders with a record $37.5 billion thus far, rather than hiring. When it comes to adding jobs, though, companies have been much stingier than theyve been with giving back to investors. The Federal Reserves quantitative easing program, in which it buys $85 billion each month in Treasurys and mortgage-backed securities, is aimed at helping the central bank meet its dual mandate of price stability and maximum employment. However, since the latest version, launched in November, the main accomplishment has been in boosting asset prices. The unemployment rate since the program that some call QE Infinity has fallen from 7.9 percent to 7.5 percent. But that has come as the labor force participation rate has shrunk to its lowest level since October 1978, which in itself cuts the jobless rate. Total employment has grown just 302,000, or an average of a bit more than 50,000 per month. The total unemployment level has contracted 383,000, or just under 64,000 a month. A dramatic drop in unit labor costs completes the picture. The most recent figures released Wednesday show that bottom-line-focused companies lowered their worker costs by 4.3 percent while squeezing out still more productivity, which increased at a 0.5 percent clip. The trend, then, does little to boost hopes that companies will start hiring or spending more on workers. Clearly the short-term health of labor market sentiment is insufficient to bolster the national employment numbers at this point, Andrew Wilkinson, chief market economist at Miller Tabak, said in a note. We continue to feel the need to see improvements here before expecting to see bigger and better payroll readings in the second half of the year. Economists at Capital Economics said the latest numbers suggest an economy growing at a 1.5 percent pace—likely a further disincentive for additional hiring. full article: cnbc/id/100792255 The top one percent of households have 38.3% of all privately held stock, 60.6% of financial securities, and 62.4% of business equity. The top 10% have 80% to 90% of stocks, bonds, trust funds, and business equity, and over 75% of non-home real estate. sociology.ucsc.edu/whorulesamerica/power/wealth.html Normalized to 1979, the top 1% have seen their share of Americas income more than double. The bottom 90% have seen their portion shrink. businessinsider/15-charts-about-wealth-and-inequality-in-america-2010-4 allegromedia/sugi/taxes/ The top 400 [.0000035%] wealthiest Americans hold more net wealth then the bottom 50% of 115 million American housholds combined. 400 is .00000128% of 311 million people. good.is/post/the-400-richest-americans-are-now-richer-than-the-bottom-50-percent-combined/ examiner/liberal-in-orlando/republicans-cry-class-warfare-all-the-way-to-bank About 80 percent of the income of America’s richest 400 comes in the form of capital gains taxed at 15%. truth-out.org/good-fight/1316540233 The six biggest banks in America control assets equaling more than 64 percent of our national GDP. crooksandliars/mike-lux/against-their-own-interests The vast majority of U.S. households - 87 million of the almost 119 million in 2011 - have less than $100,000 in assets, according to the data. cnbc/id/49229812 Americans are working harder for less pay on an inflation-adjusted basis. The real median wage is about 8% below where it was in 2000. etfdailynews/2013/03/19/4-warnings-the-market-is-trying-to-send-us-dow-jones-industrial-average-2-minute/ Calculated in real 2010 dollars, the 1968 minimum wage was the highest at $10.04. oregonstate.edu/instruct/anth484/minwage.html The top 1% [3,110,000] of U.S. citizens owns more wealth than the bottom 95%. marxmail.org/facts/us_economy.htm * Over the past 20 years, more than 80 percent of the capital gains income realized in the United States has gone to 5 percent of the people; about half of all the capital gains have gone to the wealthiest 0.1 percent. * In 1996, before the capital gains cut under Clinton, millionaires paid an effective rate of 30.8 percent. By 2007, it was 22.1 percent. * The 400 richest taxpayers in 2008 counted 60 percent of their income in the form of capital gains and 8 percent from salary and wages. The rest of the country reported 5 percent in capital gains and 72 percent in salary. washingtonpost/business/economy/capital-gains-tax-rates-benefiting-wealthy-are-protected-by-both-parties/2011/09/06/gIQAdJmSLK_story.html In the US the average share holding lasts just 22 seconds. Computerized high-frequency trading makes up about 70pc of all trades. telegraph.co.uk/finance/personalfinance/investing/9021946/How-long-does-the-average-share-holding-last-Just-22-seconds.html Corporations that make Billions in profits need their own Higher minimum wage. Employees before Stock Holders! Retails Hidden Potential for Wages https://facebook/photo.php?fbid=296918687075143&set=a.117406088359738.14285.100002710429170&type=1&ref=nf
Posted on: Thu, 11 Sep 2014 17:33:56 +0000
Trending Topics
Recently Viewed Topics
© 2015