# Duhbya's legacy. Corporate profits way up. Private income down. **URL:** \ **Category:** The BBQ Pit\ **Created:** [October 10, 2004, 3:35pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474 "2004-10-10T15:35:05Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Reeder](https://avatars.discourse-cdn.com/v4/letter/r/c6cbf5/32.png) [@Reeder](https://boards.straightdope.com/u/Reeder)\ **Post date:** [October 10, 2004, 3:35pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/1 "2004-10-10T15:35:05Z")
> **[Lopsided trends in profits and wages threaten to topple growth](https://www.epi.org/publication/webfeatures_snapshots_04122004/)** > > See Snapshots Archive. Snapshot for April 12, 2004. Lopsided trends in profits and wages threaten to topple growth The rise in the stock market over the last year reflects spectacular growth in profits but not a generally healthy economy nor... > [@](#): > > The rise in the stock market over the last year reflects spectacular growth in profits but not a generally healthy economy nor sustainable growth. Profits have never fared better, nor wage and salary income so poorly for this period of the business cycle. Since the last expansion ended in the first quarter of 2001, corporate profits in the United States have expanded by 57.5%. Meanwhile, private wage and salary income has contracted by 1.7% and total labor compensation has increased by a meager 1.5%. Is anyone surprised? Duhbya takes care of his cronies. To hell with the rest of us. ---
**Author:** ![SteveG1](https://avatars.discourse-cdn.com/v4/letter/s/bb73d2/32.png) [@SteveG1](https://boards.straightdope.com/u/SteveG1)\ **Post date:** [October 10, 2004, 3:41pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/2 "2004-10-10T15:41:56Z")
It’s no surprise to me. All ya gotta do is manipulate the stock value on paper, sell out, fire everyone, close the factory, get your golden parachute,and sell off the land. You get your profits, and get to screw an entire company town simultaneously. Then you can move on to another company (and town) and do it again. What fun. ---
**Author:** ![Johnny\_L.A](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnny_l.a/32/1084_2.png) [@Johnny\_L.A](https://boards.straightdope.com/u/Johnny_L.A)\ **Post date:** [October 10, 2004, 4:16pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/3 "2004-10-10T16:16:52Z")
I got a $300 tax cut. My $45,000/year job was outsourced to an Indian company, so I’m losing about $25,000/year. But I did get a tax cut. :rolleyes: :mad: [sub]By the way: I was contributing a lot more to the economy when I had more money to spend.[/sub] ---
**Author:** ![GaWd](https://avatars.discourse-cdn.com/v4/letter/g/f08c70/32.png) [@GaWd](https://boards.straightdope.com/u/GaWd)\ **Post date:** [October 10, 2004, 4:20pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/4 "2004-10-10T16:20:38Z")
I lost my $20/hr. job and spent 2 years searching for another job. I ended up taking a position outside of my training for $10/hr. I got a tax cut the first year, but last year I discovered that my wife and I didn’t make ENOUGH MONEY to get the tax cut last year. What a fucking joke. Sam ---
**Author:** ![ParentalAdvisory](https://avatars.discourse-cdn.com/v4/letter/p/53a042/32.png) [@ParentalAdvisory](https://boards.straightdope.com/u/ParentalAdvisory)\ **Post date:** [October 10, 2004, 4:21pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/5 "2004-10-10T16:21:44Z")
Can Kerry fix this problem? From what I’ve heard he has a plan, anyone know what the plan consists of? And could Bush have prevent this? And before this gets into a Bush Kerry piss match, who, if anyone can stop business from selling off, and laying off workers for cheaper land and labor to boost stock prices without infringing on capitalism and free trade? ---
**Author:** ![SteveG1](https://avatars.discourse-cdn.com/v4/letter/s/bb73d2/32.png) [@SteveG1](https://boards.straightdope.com/u/SteveG1)\ **Post date:** [October 10, 2004, 4:22pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/6 "2004-10-10T16:22:26Z")
Gee. Didn’t Fearless Leader say the economy was booming, and outsourcing would create more jobs, and we were all living in the lap of luxury? No answer needed, I’m being sarcastic. Happy Days Are Here Again and all that. ---
**Author:** ![ParentalAdvisory](https://avatars.discourse-cdn.com/v4/letter/p/53a042/32.png) [@ParentalAdvisory](https://boards.straightdope.com/u/ParentalAdvisory)\ **Post date:** [October 10, 2004, 4:24pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/7 "2004-10-10T16:24:13Z")
> [@SteveG1](#): > > Gee. Didn’t Fearless Leader say the economy was booming, and outsourcing would create more jobs… No one is denying that political leaders lie. Bush, Kerry, and all the way to Washington… ---
**Author:** ![Reeder](https://avatars.discourse-cdn.com/v4/letter/r/c6cbf5/32.png) [@Reeder](https://boards.straightdope.com/u/Reeder)\ **Post date:** [October 10, 2004, 4:24pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/8 "2004-10-10T16:24:37Z")
> [@GaWd](#): > > I lost my $20/hr. job and spent 2 years searching for another job. I ended up taking a position outside of my training for $10/hr. I got a tax cut the first year, but last year I discovered that my wife and I didn’t make ENOUGH MONEY to get the tax cut last year. > > What a fucking joke. > > Sam Yet Duhbya will take credit for creating your job. Less money, less benefits, but who cares? It’s a job! :rolleyes: ---
**Author:** ![GaWd](https://avatars.discourse-cdn.com/v4/letter/g/f08c70/32.png) [@GaWd](https://boards.straightdope.com/u/GaWd)\ **Post date:** [October 10, 2004, 4:27pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/9 "2004-10-10T16:27:13Z")
> [@Reeder](#): > > Yet Duhbya will take credit for creating your job. Less money, less benefits, but who cares? It’s a job! :rolleyes: Oh yeah, I forgot to mention that I work for one of those “struggling” small businesses mr. bush whines about impacting so often. He’s taken in over $250K this year so far, is buying a house, has only me as an employee, and I have to pay $200 a month for my insurance. All of my previous positions had bennies plus high salaries. Dick. Sam ---
**Author:** ![SteveG1](https://avatars.discourse-cdn.com/v4/letter/s/bb73d2/32.png) [@SteveG1](https://boards.straightdope.com/u/SteveG1)\ **Post date:** [October 10, 2004, 4:37pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/10 "2004-10-10T16:37:23Z")
> [@ParentalAdvisory](#): > > Can Kerry fix this problem? From what I’ve heard he has a plan, anyone know what the plan consists of? And could Bush have prevent this? And before this gets into a Bush Kerry piss match, who, if anyone can stop business from selling off, and laying off workers for cheaper land and labor to boost stock prices without infringing on capitalism and free trade? Well, you can start by not encouraging outsourcing or giving rewards/tax cuts/incentives for doing it. You give these things to companies that keep jobs in the country, if you’re going to reward anybody. You let the Securities and Exchange Commission take a closer look at how the stocks of floundering companies can suddenly go through the roof, just before the big sell-off. You let them look closer at companies that have rosy stock reports and a glorious annual report, yet still are widely known to be in the tank. You give longer sentences to stock frauds and insider traders. You follow the anti-trust laws that are already on the books. You pass or enforce laws against corporate raiders whose only purpose is to run hostile takeovers so they can loot retirement accounts. You stop wasting money on corporate bailouts of incompetent CEOs and funnel that money to job retraining. I’m not talking about retraining people in how to flip a burger or make fries either. I have a plan too. ---
**Author:** ![SteveG1](https://avatars.discourse-cdn.com/v4/letter/s/bb73d2/32.png) [@SteveG1](https://boards.straightdope.com/u/SteveG1)\ **Post date:** [October 10, 2004, 4:42pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/11 "2004-10-10T16:42:18Z")
> [@GaWd](#): > > Oh yeah, I forgot to mention that I work for one of those “struggling” small businesses mr. bush whines about impacting so often. He’s taken in over $250K this year so far, is buying a house, has only me as an employee, and I have to pay $200 a month for my insurance. All of my previous positions had bennies plus high salaries. > > Dick. > > Sam If you are his only employee, I imagine you are also doing all the work. Just letting my mind wander. How fucked would he be if you walked out? If he thinks you will do that, maybe you have some leverage. You could also (maybe) use this job to build up your own contacts elsewhere. ---
**Author:** ![Happy\_Fun\_Ball](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/happy_fun_ball/32/17664_2.png) [@Happy\_Fun\_Ball](https://boards.straightdope.com/u/Happy_Fun_Ball)\ **Post date:** [October 10, 2004, 4:46pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/12 "2004-10-10T16:46:21Z")
Just to be up front, I am in the ABB camp. Pathetic I know, but I can’t stand the guy or his policies. That said, I actually think that Kerry is a good guy and will not damage our country too much. (Being of a Libertarian bent, I am almost convinced that ALL presidents damage our country and the best president is one that does the least and also keeps the congress in check.) Reading the article linked to in the OP (which is 6 months old) and the [other economic snapshots](http://www.epinet.org/content.cfm/webfeatures_snapshots_archive_snapshotsarchive) on the EPI site, which are just as gloomy and depressing, I have to wonder if this can truly be pinned on Bush (though it would not surprise me if it could be). I know this is the goat felching pit, but can someone please explain to me how Bush’s policies have created the current state of affairs? ---
**Author:** ![Knorf](https://avatars.discourse-cdn.com/v4/letter/k/58956e/32.png) [@Knorf](https://boards.straightdope.com/u/Knorf)\ **Post date:** [October 10, 2004, 4:52pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/13 "2004-10-10T16:52:14Z")
I’ve said it before, and I’ll say it again: Bush’s (and the GOP’s) economic policies will push income disparity further and further apart, the net result being an economy that more closely resembles almost any South American country than other industrialized nations. Those who have will have _a lot_, and then there’ll be an enormous gap to everyone else, the “have nots,” who will have much, much less than they had before. Income disparity in this country has never been as great as it is now, and it’s going to get worse, especially if we don’t kick those corrupt bastards out of office. ---
**Author:** ![Kimstu](https://avatars.discourse-cdn.com/v4/letter/k/ecd19e/32.png) [@Kimstu](https://boards.straightdope.com/u/Kimstu)\ **Post date:** [October 10, 2004, 5:19pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/14 "2004-10-10T17:19:08Z")
**Eyer8:** \* I know this is the goat felching pit, but can someone please explain to me how Bush’s policies have created the current state of affairs?\* Well, of course, the links between presidential policies and economic consequences are by no means undisputed, but I think the [standard critique](http://www.tompaine.com/articles/four_years_of_failure.php) of Bush’s economic performance goes about as follows: 1. The original recession wasn’t specifically his fault—it was a predictable bust after the late-90’s boom. And it was worsened by the aftershocks of 9/11. 2. The usual economic prescription for a recession is to cut taxes somewhat on the low and middle income brackets and increase domestic spending. This “stimulus” offsets the economic contraction from layoffs and the resulting reduced income. Bush’s tax cuts did provide some of that stimulus, but they were highly inefficient since most of the tax savings went to the wealthiest taxpayers. And the consequent revenue shortfalls produced deficits that hamstrung the government’s ability to stimulate with domestic spending, as well as increasing the national debt and forcing us to spend more money on debt servicing. 3. Since the stimulus provided by fiscal policy wasn’t much, the burden of recovery fell largely on monetary policy—low interest rates. This enabled people to deal with short-term cash flow problems by refinancing mortgages and assuming more debt. But in the long term, interest rates have to go back up if we want to revive investment. And higher indebtedness is leading to higher bankruptcy rates, which isn’t good for economic growth or job creation. 4. High trade deficits mean we continue to be dependent on foreign capital to finance our indebtedness. Refusing to change course now—insisting on making the tax cuts permanent, thus locking in higher budget deficits and debt increases—is just going to make the economy worse. ---
**Author:** ![Kimstu](https://avatars.discourse-cdn.com/v4/letter/k/ecd19e/32.png) [@Kimstu](https://boards.straightdope.com/u/Kimstu)\ **Post date:** [October 10, 2004, 5:26pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/15 "2004-10-10T17:26:28Z")
**Knorf** ’s right, the continued growth in income inequality is another source of concern. (That didn’t start with Bush, of course, but he hasn’t done anything to slow it down.) The idea is that some income inequality is a good thing for an economy, but the more of it you have, the harder it becomes for the lower brackets to support things like decent schools, decent healthcare, decent infrastructure, etc., at the individual, local, and state level. You start to get, in effect, “two economies”, where lavish private spending in the upper level doesn’t create corresponding benefits and opportunities in the lower level, because there is no longer enough of a middle-class “conduit” between them. ---
**Author:** ![GaWd](https://avatars.discourse-cdn.com/v4/letter/g/f08c70/32.png) [@GaWd](https://boards.straightdope.com/u/GaWd)\ **Post date:** [October 10, 2004, 5:38pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/16 "2004-10-10T17:38:08Z")
> [@SteveG1](#): > > If you are his only employee, I imagine you are also doing all the work. Just letting my mind wander. How fucked would he be if you walked out? If he thinks you will do that, maybe you have some leverage. You could also (maybe) use this job to build up your own contacts elsewhere. Don’t worry, as long as the economy doesn’t slide in the near future, I’ll be out soon. Sam ---
**Author:** ![Kimstu](https://avatars.discourse-cdn.com/v4/letter/k/ecd19e/32.png) [@Kimstu](https://boards.straightdope.com/u/Kimstu)\ **Post date:** [October 10, 2004, 5:49pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/17 "2004-10-10T17:49:42Z")
**PA:** _Can Kerry fix this problem? From what I’ve heard he has a plan, anyone know what the plan consists of?_ Couldn’t you find the “Kerry for President” [website](http://www.johnkerry.com/issues/economy/)? That link is to the “Issues/Economy” page, including a PDF report entitled “The Kerry/Edwards Economic Plan”. Sometimes I feel like I do all the googling around here… [sulk] ---
**Author:** ![Weirddave](https://avatars.discourse-cdn.com/v4/letter/w/919ad9/32.png) [@Weirddave](https://boards.straightdope.com/u/Weirddave)\ **Post date:** [October 10, 2004, 8:11pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/18 "2004-10-10T20:11:35Z")
[anecdotal evidence] I am having my best year ever work-wise, I deal almost exclusively with small businesses(1 to a couple employees) and they are booming as well, plus more people than ever are starting new ones. Last year I paid signifigantly less in taxes than the year before. This year I made a lot more money than ever before. You can bitch and whine about a poor economy to grind your particular political axe all you want, but out here where the rubber meets the road, you look like you’re full of it. [/anecdotal evidence] ---
**Author:** ![milroyj](https://avatars.discourse-cdn.com/v4/letter/m/a88e57/32.png) [@milroyj](https://boards.straightdope.com/u/milroyj)\ **Post date:** [October 10, 2004, 8:12pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/19 "2004-10-10T20:12:17Z")
> [@Kimstu](#): > > **PA:** _Can Kerry fix this problem? From what I’ve heard he has a plan, anyone know what the plan consists of?_ > > Couldn’t you find the “Kerry for President” [website](http://www.johnkerry.com/issues/economy/)? That link is to the “Issues/Economy” page, including a PDF report entitled “The Kerry/Edwards Economic Plan”. > > Sometimes I feel like I do all the googling around here… [sulk] Well, your link doesn’t work, but I don’t imagine a Kerry/Edwards Economic Plan would fare any better! 😉 ---
**Author:** ![Early\_Out](https://avatars.discourse-cdn.com/v4/letter/e/6f9a4e/32.png) [@Early\_Out](https://boards.straightdope.com/u/Early_Out)\ **Post date:** [October 10, 2004, 8:17pm UTC](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474/20 "2004-10-10T20:17:50Z")
> [@Kimstu](#): > > …“Kerry for President” [website](http://www.johnkerry.com/issues/economy/)… (Fixed link for **Kimstu** ) [Next page](https://boards.straightdope.com/t/duhbyas-legacy-corporate-profits-way-up-private-income-down/268474.md?page=2)