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The Trade Off To Record Corporate Profits: Your Miserable Salary

Tyler Durden's picture


Getting paid miserable wages? Don't fret - just buy the stock of your (hopefully public) employer, and hope and pray that this time is different, and that light at the end of the tunnel is the not the next latest and greatest (and likely last) stock market collapse, in the ultimate trade off of current pay for capital gains: 13 quarters in and Labor Comepnsation is still lower than where it was when the Great Financial Crisis began.

For those curious what the reason for records corporate profits is (or rather was: we have now finally turned the cycle and Y/Y profit growth is, for the first time since 2009, finally negative), the chart below explains it all. It also explains why 401(k) plans are now redundant: anyone who wishes to keep up with the growth rate of their employer has no choice but to buy their stock, and generate returns for all shareholders. Because corporations, people or not, now have all the leverage.


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Tue, 07/17/2012 - 16:48 | 2625825 wandstrasse
wandstrasse's picture

All your work are belong to us.

Tue, 07/17/2012 - 17:00 | 2625883 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

[B]uy the stock of your (hopefully public) employer, and hope and pray that this time is different.

Different from what?  Enron?  Nope.  Aurthor Anderson is doing the books for everyone now.

Tue, 07/17/2012 - 17:09 | 2625924 knukles
knukles's picture

I wanna know what the breakdown is amongst the salary groups....
California Civil Servants... Waythefuckoverpaid.
Bunches and bunches of them drive 500 Mercedes, large Beemers, Jags, etc.
Union bosses
California Civil Servant benefit packages... Oh fuck me, not counted a "salaries", eh?
No fucking wonder.
US Federal Employee salaries, plus the fucking bennies, BECAUSE MOST PRIVATE FOLKS BENNIES ARE DOWN TO NON EXISTENT.
WHo the fuck else is in there that distorts the piss outa the numbers....
Like the total data series is sucko lousy, there are these groups that are included, living like fucking KINGS of Versailles.

Time for that which has been hidden to be shouted from the roof tops.

Tue, 07/17/2012 - 17:16 | 2625952 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Who wants money?!

- POTUS, Baraack Obama, June 2012

Tue, 07/17/2012 - 17:22 | 2625989 MiguelitoRaton
MiguelitoRaton's picture

Obama is the working man's can this be???!!!

Tue, 07/17/2012 - 17:26 | 2626003 knukles
knukles's picture

Like all unionized civil servants, he doesn't work.


Tue, 07/17/2012 - 17:33 | 2626035 francis_sawyer
francis_sawyer's picture

Now THAT'S how you organize a community!

Tue, 07/17/2012 - 17:47 | 2626065 The Alarmist
The Alarmist's picture

Only problem with this information is that the wage-serfs will be the ones prosecuted for insider trading.

Tue, 07/17/2012 - 17:55 | 2626085 Comay Mierda
Comay Mierda's picture

companies are hoarding cash because the investment & regulatory climate in the USSA will significantly deteriorate and they don't know what the new, less free, highly taxed, and more ridiculously regulated economy will look like

want to get big raise? you must be invaluable to your company. irreplacable. you must have a significant and measurable impact on the bottom line.

keep in mind workers today are desperate and dont have much leverage. they have piled on student loans, credit cards, helocs, mortgages and are now debt slaves. and there is a ton of new supply coming out of the colleges and universities with degrees in worthlessness competing for the majority of low skill service jobs available and good innovate talent is hard to find

Tue, 07/17/2012 - 18:46 | 2626099 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Sounds like an NWO only GHWB could dream of.

Tue, 07/17/2012 - 18:02 | 2626111 DoChenRollingBearing
DoChenRollingBearing's picture

Companies are indeed relauctant to invest and hire with the regulatory uncertainty and high taxes.  Companies, especially small ones feel abused, when it is the small and medium sized businesses that are creating jobs.

Job creation is the Number One problem according to Gallup (the polling firm).  Jim Clifton, the CEO of Gallup, has written a verry important new book.  He says that our leaders are digging in the wrong places to encourage job creation.  He wrote a book, very important in my opinion, that describes the way out.  I review Clifton's remarkable book at my blog:

Wed, 07/18/2012 - 00:51 | 2627060 Rentier
Rentier's picture

comay, last paragraph of yours this is true...and most of them only have themselves to blame for putting themselves behind the 8-ball in life.

Tue, 07/17/2012 - 17:56 | 2626089 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Everything up until now has been a beta test.  Stock bubbles, housing bubble, crime sprees by bankers everywhere, it is like living in a Disney movie.  And America is a real life Disneyland, but just like Disneyland, when the shows over, you have to go home.

Tue, 07/17/2012 - 18:02 | 2626105 francis_sawyer
francis_sawyer's picture

In Disneyland... when the 'show' is over, it's actually just getting started... All the pedophiles pass thru the green (illuminati 'OZ') doors of 'Club 33', and instead of raping you, rape your kids...

Tue, 07/17/2012 - 19:04 | 2626283 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The sexualization of Brittney Spears, penises in Little Mermaid, and in every single movie the mother dies.  Yes, Disney is a fucked up part of the American experience that has warped the minds of men, women, and children alike.

Tue, 07/17/2012 - 19:39 | 2626363 francis_sawyer
francis_sawyer's picture

Britney is just the tip of the iceberg in the "MK Ultra" Monarch program (which Disney is a large player in)...


Tue, 07/17/2012 - 22:39 | 2626337 dexter bland
dexter bland's picture

Great chart, only I believe it shows the wages of American workers, not the Chinese workers whose salaries are growing at 15-20%/year.

Unemployment is actually a good thing for the corporations and the markets, it serves to keep wages down and workers in their place. For the loss of a few bottom 20%-er US consumers, billions of new consumers have been created elsewhere in the world. And they will work for a fraction of the wages, while pouring all their savings into western luxury brands - right back into the pockets of our 1%-ers. Even better that those high margin luxury goods can be produced using very little of anyone's labour.

I can see the penny is starting to drop for some. Of course the logical thing to do is to vote for Mitt Romney who understood this long before most of us.

Tue, 07/17/2012 - 19:36 | 2626357 billsykes
billsykes's picture

Longshore workers make 180k yr because of strong unions, don't count them out. Also city landscapers.

Tue, 07/17/2012 - 20:04 | 2626406 mjk0259
mjk0259's picture

Yep, all 2,000 of them. Really significant in population of 300M

Tue, 07/17/2012 - 18:00 | 2626104 Old Poor Richard
Old Poor Richard's picture

All ur tears and sweat are belong to us.


Muh. Thur. Fok.  Corporations, insulate yourselves from any recession.  Lay off half your workers.  Cut the pay of the other half, make them work twice as hard,  and tell them they're the lucky ones.

The corporato-soviets won the cold war.  Will the slaves ever revolt?

Tue, 07/17/2012 - 17:12 | 2625941 Unprepared
Unprepared's picture

This explains the accross the board "Beats bottom-line, misses top-line".


Isn't it a better strategy for the sheeple to invest their ever shrinking savings in their company's biggest competitor? At least they would have a higher probability they would either have a salary or an investment portfolio.

Tue, 07/17/2012 - 17:20 | 2625976 Normalcy Bias
Normalcy Bias's picture

Soylent Green is corporations!

Tue, 07/17/2012 - 16:48 | 2625826 Gringo Viejo
Gringo Viejo's picture

I once applied for a job and the man said I'll pay you what your worth. I told him I couldn't work that cheap.

Tue, 07/17/2012 - 16:49 | 2625834 Tirpitz
Tirpitz's picture

That wasn't a CEO job title you were seeking?

Tue, 07/17/2012 - 17:18 | 2625964 TrainWreck1
TrainWreck1's picture


Tue, 07/17/2012 - 17:51 | 2626075 francis_sawyer
francis_sawyer's picture

Shoulda told him you had experience in organizing communities & smoking up choomwagons... You'd have your own private helicopter by now...

Tue, 07/17/2012 - 16:48 | 2625829 Its_the_economy...
Its_the_economy_stupid's picture

No middleclass to fund the consumer economy.

Tue, 07/17/2012 - 16:49 | 2625833 Getting Old Sucks
Getting Old Sucks's picture

Enron anyone?

Tue, 07/17/2012 - 16:51 | 2625839 partimer1
partimer1's picture

GLOBALIZATION, OUTSOURCING, The labor cost is decreased dramatically, therefore, the profit is soaring.  they took the money and jobs from american people and give them to the top a few executives as huge bonuses.  The tragic part of all is there is no end in sight.  

Tue, 07/17/2012 - 16:56 | 2625861 ebworthen
ebworthen's picture

This is why I don't use self checkout.

They want me to do the work so they don't have to pay a real person; and they aren't even offering me a 10% discount to scan and bag my own purchase.

And no, I don't believe for one instant that the store will "pass the savings" on to me.

Tue, 07/17/2012 - 17:03 | 2625903 adr
adr's picture

Grocery workers union is a bunch of thieves, screw'em. I remember getting my first check when I worked as a grocery packer. After the union dues were taken out I got less than $2.

Tue, 07/17/2012 - 17:21 | 2625985 TrainWreck1
TrainWreck1's picture

I use self-checkout all the time - if they did swabs of the belts at the register they would be declared biohazards.

Shopping carts are worse. That little tray next to the handle? Think diaper poop.

I don't even want to contemplate what lives on the seats of the scooters...


Tue, 07/17/2012 - 17:25 | 2625999 NotApplicable
NotApplicable's picture

One person's biohazards are another's innoclulations.

Tue, 07/17/2012 - 18:59 | 2626270 Meesohaawnee
Meesohaawnee's picture

i REFUSE to use self checkout. All should do the same. Its only there to eliminate people. Why should i inconvenience myself for the profit of some big corp. No fuckin way.

Wed, 07/18/2012 - 11:07 | 2628130 emersonreturn
emersonreturn's picture

stop shopping at mega stores start buying from farmer's markets and small grocers and markets.

Tue, 07/17/2012 - 20:06 | 2626410 mjk0259
mjk0259's picture

So you were making 5 cents an hour? When was this 1320? 

Tue, 07/17/2012 - 17:19 | 2625973 Joe Davola
Joe Davola's picture

The irony is they still have to have someone there to deal with all the problems.

Tue, 07/17/2012 - 16:51 | 2625841 Flakmeister
Flakmeister's picture

It does not take much forensic analysis to see who killed the American middle class...

Next chart should be fraction of corporate profits payed out to officers.....

Tue, 07/17/2012 - 17:09 | 2625928 resurger
resurger's picture

ill print this chart, and give it to my boss tomorrow!

I want a raise or ill fuck you ...

Tue, 07/17/2012 - 17:26 | 2626000 gball
gball's picture you're a direct report to Yahoo's CEO.

Why do you need to print the chart to say that though?

Tue, 07/17/2012 - 17:26 | 2626005 NotApplicable
NotApplicable's picture

Think I can't blow out your CDS spread with a well-placed rumor or two?

Tue, 07/17/2012 - 16:52 | 2625845 ebworthen
ebworthen's picture

The nobility demand that the serfs till the fields and offer up their Daughters for the bedchamber and their Sons for the battlefield.

Tue, 07/17/2012 - 17:12 | 2625940 Alpha Monkey
Alpha Monkey's picture

I (male) was in the military, just like my ma and pa (both), and my ma's pa (who, after service, was a farmer).  Unrelated to my family, I watched this today.  From CNBC.  I think you're on to something.

Tue, 07/17/2012 - 16:55 | 2625846 Shizzmoney
Shizzmoney's picture

I was invited to a seminar about my company's (not matched) 401K today.

I declined, considering that I opted out of the plan (which I was enrolled into w/o my intial permission) and don't even make enough to consider buying company stock.

Just take me to Atlantic City, instead.  If I'm gonna gamble with what little money I make, at least let me have the opportunity to get a free cocktail out of it.

BTW, I somehow don't see this anywhere in the Obama campaign.  I'm sure his masters at AAPL won't like these graphs much.

Tue, 07/17/2012 - 16:59 | 2625877 ParkAveFlasher
Tue, 07/17/2012 - 17:29 | 2626014 NotApplicable
NotApplicable's picture


Tue, 07/17/2012 - 17:09 | 2625919 HardAssets
HardAssets's picture

There's trillions in 401ks/retirement accounts - - so expect that'll they'll grab them eventually. Theyll be 'invested' in 'safe' treasuries, of course.

Tue, 07/17/2012 - 17:59 | 2626102 Henry Hub
Henry Hub's picture

Eventually, but first they want you Social Security and they'll get all of it. Later they'll go for the 401Ks. Happy retirement!

Tue, 07/17/2012 - 19:58 | 2626395 lotsoffun
lotsoffun's picture

yes, they will.  like our social security benefits, that aren't even actually invested in treasurys yet issued, but in future iou's


Tue, 07/17/2012 - 17:43 | 2626059 I should be working
I should be working's picture

If there was no match to my 401k I wouldn't contribute to it.

Tax rates are going up, better to get the money after tax now rather than later.

Tue, 07/17/2012 - 16:54 | 2625853 khakuda
khakuda's picture

That's the f****** problem that no amount of QE, ZIRP or cow tipping addresses.

Tue, 07/17/2012 - 16:55 | 2625854 ParkAveFlasher
ParkAveFlasher's picture

Very appropriate chart published just after the 15th of July, aka (for many) the first paycheck of FY13.  thanks ZH for always being spot on in a whirlwind of data.

Tue, 07/17/2012 - 16:55 | 2625857 centerline
centerline's picture

Can't speak for big business, but I know many small businesses that are building cash as best as possible because of uncertainty.  Who the hell is going to make capital investments without any real ability to forecast?  Likewise, anyone with a couple of functioning brain cells knows that we are not by any means out of the woods and surviving another downturn in any business cycle (sythetic or not... cash does not care), requires money to keep the doors open.  

Tue, 07/17/2012 - 16:56 | 2625862 news printer
news printer's picture
Russian Coast Guards Open Fire to Detain Chinese Poachers

Coast guards in Russia’s Far East were forced to open fire to stop a poaching fishing vessel in the Sea of Japan, a spokesman for the local Border Guards Service said on Tuesday.

He said the vessel, flying the flag of China, refused to stop on demand from coast guards and tried to escape.

Tue, 07/17/2012 - 17:18 | 2625962 knukles
knukles's picture

That's silly...
Everybody knows stir-fry is better than poaching.

Tue, 07/17/2012 - 16:57 | 2625864 poor fella
poor fella's picture

Today's news where I work:

   If you work 14 hours, you can defer further work to the next day. That is of course if it isn't customer impacting. In that case you still have to go out, but might need to phone your manager requesting overtime, but, they may not always be available to o.k. that overtime. So it's a judgement call. But if you make the wrong call, it could be grounds for disciplinary action - on and on. Had to tune it out.

Talked to a guy that worked so long, he was driving at night and saw Ronald McDonald's big red shoes running alongside the car..    that's fucked up.

Tue, 07/17/2012 - 17:00 | 2625880 Jumbotron
Jumbotron's picture

Worked a 30 hour straight shift.  Drove 50 miles home finally that afternoon after being told good sure to be on time in the morning.

Promptly ran off the road on a major highway to avoid a Semi-Tractor trailer coming my way.....only to find that there was not a car on my side of the highway for as far as the eye could see.

Quit the next day

Tue, 07/17/2012 - 17:15 | 2625948 poor fella
poor fella's picture

feel that... Love when you're driving, and come out of a blackness in your eyes thinking, "OH SHIT, I'm still driving but don't remember anything. Did I black out??.... no.... I'm Ok.... <opens window>   <head snaps out of>  ...darkness...  Do I remember?  OMG.... only 3 more hours home. I'm fine."

Sure glad c-suite works so hard so the people on the ground don't have to kill themselves...

Tue, 07/17/2012 - 18:06 | 2626077 Big Corked Boots
Big Corked Boots's picture

I had an employee (licensed professional engineer) who left his NJ home on Monday for a meeting in Puerto Rico, then flew Tuesday to Boston, then Wednesday to Seattle, and "since you're on the way" a Thursday in Chicago.

Friday morning he drags back into the office asking to go home at lunch. I told him yes.

At 4pm the SVP asks me where he is. I told him, and his response was, I don't give a shit where he's been, I want him NOW. Fortunately he was able to answer the banal question over the phone.

I was terminated 6 weeks later.


Tue, 07/17/2012 - 19:56 | 2626390 lotsoffun
lotsoffun's picture

but the corporations i've worked for have figured out the last 5 years that for the same price, they could import 3 indians and have them everywhere at once at the same time doing everything.  of course, nothing gets done because they are clueless, but that doesn't matter.  'look at all the headcount i manage and it's cheap'!  and then they toss in 3 more free 'outsourrced' to pick up the phone.


Tue, 07/17/2012 - 17:21 | 2625980 Getting Old Sucks
Getting Old Sucks's picture

And TPTB will say be glad you have a job.  WTF have we become?

Tue, 07/17/2012 - 17:17 | 2625959 Getting Old Sucks
Getting Old Sucks's picture

I don't doubt what you say.  It's shit like that, that gives rise to worker rights.  I am no fan of government unions because they hold the public hostage and pilfer taxpayers.  However, there must be at least some worker rights to prevent employer abuse.  Labor laws are null and void if your employer can harrass or fire you for complaining.  Been there, done that.  There needs to be a middle ground.

Tue, 07/17/2012 - 22:18 | 2626722 msjimmied
msjimmied's picture

Sometimes I wonder though. Does the government workers have it too good? Their wages and benefits seems so rock solid against the withering wages in the real world. The government workers wages perhaps reflects what wages would be if the corporations were not able to contain unions. Are unions all that bad? The biggest sin the unions have commited, was to ask for the unreasonablle. But that's how you start in a negotiation, it's up to the other side to beat you down. The politicians did not do their job, they were looking at a huge block of votes and chose accordingly. Should we blame the oligarchs or the unions for the tug of war that has both ideologies crafting their rationale to seduce us? They look at who is going to be the highest bidder. Obviously, the oligarchs are winning. Bartertown is Washington D.C.

Tue, 07/17/2012 - 16:56 | 2625865 Jumbotron
Jumbotron's picture

We all elected the politicians who sold us the bill of goods called NAFTA and GATT and all the rest and did not hold them accountable for turning us into nothing but commoditized gears and cogs in the Global Machine.



Tue, 07/17/2012 - 17:00 | 2625884 Tirpitz
Tirpitz's picture

"We all elected..."

We, the Diebolds? All of us/them? In any case, definitely not 'elected', but put into position by a structure which rapes country and people since decades.

Tue, 07/17/2012 - 17:09 | 2625926 Jumbotron
Jumbotron's picture

Founding Fathers took up arms.......

What's our excuse?

Tue, 07/17/2012 - 17:19 | 2625974 knukles
knukles's picture

Venus DiMilo?

Tue, 07/17/2012 - 18:55 | 2626261 Tippoo Sultan
Tippoo Sultan's picture



Tue, 07/17/2012 - 17:40 | 2626050 Getting Old Sucks
Getting Old Sucks's picture

Study up on the Revolution.  TPTB were the Founding Fathers.  They were the land owners, plantation owners, slave owners.  It wasn't till Jackson that any man (not woman) could vote.  And that was a political move.  Up till then, only land owners could vote.  It's always been fixed.  The Constitution was for TPTB and sold to the serfs as salvation to fight the British.  Nothing has changed other than we got so rich that they could share it with the serfs.  Now, too many got rich and we're out of serfs. 

Tue, 07/17/2012 - 17:58 | 2626098 Jumbotron
Jumbotron's picture

Study up on the Revolution.  TPTB were the Founding Fathers.

Don't have to.  I know plenty well that a lot of our patriots knew they had traded one type of tyranny for another that was homegrown..... read up on Shay's Rebellion and The Whiskey Rebellion.

It wasn't till Jackson that any man (not woman) could vote.

Although I live in a town by his name and love him for his stance against National ancestors were victims of his genocide during the Trail of Tears.

The Constitution was for TPTB and sold to the serfs as salvation to fight the British.

Absolutely correct.....The American Dream died the moment the Constitution was formally ratified and we pissed on the Articles of Confederation.

Tue, 07/17/2012 - 18:17 | 2626152 LawsofPhysics
LawsofPhysics's picture

Moreover, both sides of the majority of wars have been funded by TPTB.

Tue, 07/17/2012 - 17:19 | 2625972 LawsofPhysics
LawsofPhysics's picture

Don't look at me, I voted my conscience and slept well.  The time to "elect" has passed.  The time to "execute" is upon us.

Tue, 07/17/2012 - 18:00 | 2626106 Jumbotron
Jumbotron's picture

Don't look at me, I voted my conscience and slept well.

So what...what have you done to defend?

You just voted for whatever the elites chose for you.  Political Masturbation

Tue, 07/17/2012 - 18:16 | 2626147 LawsofPhysics
LawsofPhysics's picture

Wrong, the elites hardly liked Ross Perot or Ron Paul.  Besides I have been buying PMs for 20 years and avoiding FRNs as a store of wealth.  If you have been using FRNs as such, you are a moron.

Tue, 07/17/2012 - 18:24 | 2626169 Jumbotron
Jumbotron's picture

Wrong, the elites hardly liked Ross Perot or Ron Paul.

Which is precisely why they were marginalized to the point of being irrelevent and thus not a viable choice. 

Oh...and about your gold.  If your not willing to take up arms to defend against the wholesale rape of this country you will not take up arms to defend your little stack of shiny metal when they come to confiscate it.

Or willing to take up arms to defend the storeowners and shopkeepers who operate commerce with that stuff once the SHTF and the TPTB realize that black market trade is going on with a money system not their own.  Once up on the Whiskey Rebellion.

Tue, 07/17/2012 - 16:57 | 2625869 Poetic injustice
Poetic injustice's picture

Next stop, salary is paid in rices of bowl per day.

Tue, 07/17/2012 - 16:59 | 2625874 poor fella
poor fella's picture

Now that's funny. Was thinking you meant, "bowls of rice" per day.... but nope, you got it right.

Tue, 07/17/2012 - 17:02 | 2625895 Tirpitz
Tirpitz's picture

And the serfs will have to help the CEOs carry their over-fair over-share into their bunkers, free of charge.

Tue, 07/17/2012 - 18:11 | 2626135 Henry Hub
Henry Hub's picture

Cheer up. According to the "Iron Law of Wages", workers have to be paid enough for their subsistence.

Tue, 07/17/2012 - 16:58 | 2625872 adr
adr's picture

I like how profits are hundreds of billions greater than sales.

In the bizzaro world of today, I guess that makes sense. Who needs sales to book profit?

I nominate any CFO for the new Iron Chef or Next Food Network Star. If they are that great at cooking books, imagine wha they can do with a steak.

Tue, 07/17/2012 - 17:04 | 2625907 poor fella
poor fella's picture

Didn't you know!?!?! They are all Christs! Profits are loaves and fishes!! Please address them accordingly!

"As you wish Christ Dimon." "Let me confer with Christs Immelt and Palmisano" (it's a lifelong title).

Tue, 07/17/2012 - 16:58 | 2625873 wonderatitall
wonderatitall's picture

so you didnt get that job. someone else is doing it for you...and in the case of union thugs for real its always been that way!


Tue, 07/17/2012 - 17:00 | 2625879 silverserfer
silverserfer's picture

this article is the republicans wet dream. beautiful money!

Tue, 07/17/2012 - 17:02 | 2625886 HardAssets
HardAssets's picture

Article mentions 'the light at the end of the tunnel' - -

unfortunately, its the headlight on the train coming to run your ass over

Tue, 07/17/2012 - 17:01 | 2625887 Jason T
Jason T's picture

who needs a salary when 50% of U.S. households get paid from Social Security!  Who needs to work when you got food stamps?

Tue, 07/17/2012 - 17:03 | 2625902 Peter Pan
Peter Pan's picture

Who needs food stamps if you get paid a decent salary in the frst place?

Tue, 07/17/2012 - 17:11 | 2625936 Snidley Whipsnae
Snidley Whipsnae's picture

Jason T you have a good point. If the many 'safety nets' provided by US Gov (really taxpayers) were to disappear we would have already seen a great deal of civil unrest.

Hunger is a fantastic motivator... and you can bet your bippy that pols know it.

Tue, 07/17/2012 - 17:25 | 2625998 knukles
knukles's picture

Here's the paradigm...
Over 50% of the population either work for or live off of benefits from the goobernment.
We the taxpayer works to support the goobernemtn employees and thems getting the benefits.
We the taxpayers Do Not Earn Enough to Pay for the Employees and Dole Riders.

The math do not fucking work.
That's why the debt is soooo big and growing 20% per annum
That's why the taxpayer is bleed dry and cannot sustain a recovery.
We're already paying the fucking freight for ourselves PLUS the Other Fucking Half of the Country.

Ain't it grand?

Tue, 07/17/2012 - 18:06 | 2626116 Jay Gould Esq.
Jay Gould Esq.'s picture


Tue, 07/17/2012 - 18:19 | 2626155 LawsofPhysics
LawsofPhysics's picture

That's why the system cannot crash fast enough for productive labor.  Fucking bring it.

Tue, 07/17/2012 - 21:59 | 2626685 marathonman
marathonman's picture

Plus the freight for Iraq, plus the freight for Afganistan, plus Germany, plus Italy, plus Kuwait, plus Japan, plus NATO, plus the UN, plus BIS, plus IMF, plus bailouts, plus GM.  Uncle Sam's got long and strong arms to carry around all those fat gubmint chilrin.

Tue, 07/17/2012 - 17:01 | 2625889 Peter Pan
Peter Pan's picture

It looks like the ZIRP is now slowly being applied to employee remuneration. In fact the figures may be worse than presented if the remuneration of the top executive of each corporation is not taken into account.

Tue, 07/17/2012 - 17:04 | 2625904 LawsofPhysics
LawsofPhysics's picture

Solve the problem, be your own corporation. Ownership isn't everything, it's the only thing.

Tue, 07/17/2012 - 17:16 | 2625954 booboo
booboo's picture

"be your own corporation"


Now, Now. If Corporations can't be people then people can't "be their own corporation"

Tue, 07/17/2012 - 17:18 | 2625963 LawsofPhysics
LawsofPhysics's picture

The supreme court already said corporations are people.  So shall it be.  Awesome, and there will be "limited liability" for any of my actions henceforth, just fucking awesome.

Tue, 07/17/2012 - 17:54 | 2626088 Ghordius
Ghordius's picture

*standing ovation*
this is the best, funniest, most thought provoking comment I've read on ZH

I wish it was me writing it... Thx.

Tue, 07/17/2012 - 17:08 | 2625920 Snidley Whipsnae
Snidley Whipsnae's picture

Why are few picking up this story?...

BIS slams the Fed

BIS slams too big to fail

BIS says Fed and other central banks have set interest rates too low

BIS says Fed and other central banks have blown bubbles, failed to regulate shadow banking system and using gimmicks which make things worse

Tue, 07/17/2012 - 17:18 | 2625958 HardAssets
HardAssets's picture

BIS = Big International Scam

also known as the 'Nazi's Bank'

in other words - - - theyre all in it together

Tue, 07/17/2012 - 17:25 | 2626002 Snidley Whipsnae
Snidley Whipsnae's picture

I know that they 'are all in it together'... that is what makes the verbal abuse of central banks by the BIS an interesting development.

Did you read the article?

Tue, 07/17/2012 - 17:38 | 2626046 earleflorida
earleflorida's picture


Tue, 07/17/2012 - 17:09 | 2625923 A_latvian
A_latvian's picture

Damn those evil corporations.  Why doens't the government step in and finally do something about those who have been successfull in this life?


Seriously, WTF is the point of this post?  Companies are sitting on mountains of cash, and not paying or hiring employees. because they how that a massive government confiscitory tax is coming, and they want to survive.  So whose fault is it, exactly?

Tue, 07/17/2012 - 18:45 | 2626239 lizzy36
lizzy36's picture

Oddly those same Companies are paying their c-suite 100's of millions of dollars.

And those same companies are paying an effective 11% tax rate the lowest in 40 years.

You know what pisses me off, many of those highly profitable companies are accepting massive tax breaks and "assistance" from feds, state and municipal governments, to re-shore jobs or to build a factory in location "y" as oppossed to location "x".

You know how the C-suite is bonused:profitability, often with stock options. So a massively profitable company, accepts huge government assistance to become more profitable, to pay out bonuses (in the form of stock) to the C-suite based based on profitablility. 

This isn't socialism, it is reverse socialism. You know who is picking up the tab for this average tax-payers.

One of the biggest lies of the past 5 years has been that government spending is necessary because the consumer is deleveraging. Consumer is 2% more leveraged than they were in 2006. Since 2007 the government has been spending $500-$600B per year on the lifetime expenditures of the average American.

Wages have been stagnant for 20 years. You know what hasn't been stagnant C-suite salaries. Having increased on average about 143%. Nothing better than when a CEO (of a very profitable company) fires 600 people, increases the companies profitability and gets and $11m stock option grant and total comp north of $30m(See CAT for how that works).

Now i don't know what if anything the government can or should do about this. But lets be clear - in the USA what has been going on is NOT socialism. It is reverse socialism, with a SNAP card thrown in so the average person doesn't get hungry. I do know that lack of end demand (caused by unemployent and stagnant wages) will catch up with these companies. And you can only fire so many people before the real death spiral takes over.

Tue, 07/17/2012 - 17:10 | 2625930 blunderdog
blunderdog's picture

An acquaintance of mine is working for a public company, "web 2.0" type stuff.  He's just another doughboy in the trenches making a bit over $25K.

He takes a big chunk of his money from his paycheck and buys company stock with it because he gets about a 20% discount.  Then he immediately sells the stock.  This has been making him an 8% or so more than he'd make if he just cashed his checks. 

I've asked if he's considered the possibility that the company stock price could tank one quarter and hose him, but he's certain that won't happen.  Fall more than 20% in a few months?  Never.


Tue, 07/17/2012 - 19:40 | 2626366 smiler03
smiler03's picture

Wouldn't that incur a capital gain? (or something similar)

Wed, 07/18/2012 - 10:15 | 2627862 blunderdog
blunderdog's picture

Probably, but the nice thing about being just another poor-ass wage-slave is you don't really have to worry about audits.

Tue, 07/17/2012 - 17:13 | 2625947 hedgehog9999
hedgehog9999's picture

This issue is actually worse. Salaries Today are lower than in 2001 adjusted for inflation      !!!!!

That's why 2001 is the marker for the beginning of this depression......

While executive comp has gone up more than 100%....fuckers!!!

Tue, 07/17/2012 - 17:19 | 2625961 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Instead of putting their money in a 401k people could have been buying gold and silver and their wealth would have risen with, or outpaced, inflation.

The system may be evil, but the people who have gobe along with it should not be pittied.  Adults should be judged according to their actions, too.

Tue, 07/17/2012 - 17:23 | 2625991 Winston Churchill
Winston Churchill's picture

If you pay peanuts, you get monkeys.

Lets just turn the country into a safari park, and be done with it.

Tue, 07/17/2012 - 17:28 | 2626011 knukles
knukles's picture

Do Not go to UrbanDictionary and reference "monkeys"

Tue, 07/17/2012 - 18:01 | 2626107 Conax
Conax's picture

Hey hey we're the Monkees


Tue, 07/17/2012 - 19:49 | 2626374 lotsoffun
lotsoffun's picture

now, i didn't call them monkeys.  but they will get paid peanuts.  and the corporation i work for is bringing two people into north america on visas from india for the current project, and the rest of the 'new' jobs will be offshored (estimated 8 people) to india.  how are they allowed to do this?  doesn't india have a subcontinent? can i get a job there?  can you?  and me and my friends will be out of work.

the fact is, i've seen this over and over and they can't get anything done.  but - on paper, it's all peanuts.




Tue, 07/17/2012 - 17:23 | 2625992 Zola
Zola's picture

@ebworthen. Your statement has a lot of truth to it...

Tue, 07/17/2012 - 17:29 | 2626015 yabyum
yabyum's picture

In another four years wages and benefits will be even flatter. My company stopped its 401k match, Wells Fugo sends me mail to save for my future. Fuck 'em, I pull out my money in four months sans penalty and try to figure out how to put it in to a small plot of land. Chickens, and a vegetable garden with a well. again I say FUCK'EM.

Tue, 07/17/2012 - 17:30 | 2626022 yogibear
yogibear's picture

It's the game now. Loot everyone else's money. Plenty of overseas investors to loot.

Tue, 07/17/2012 - 17:40 | 2626048 Village Smithy
Village Smithy's picture

The sad truth is that there is too much supply and not enough demand, for people.

Tue, 07/17/2012 - 17:41 | 2626052 Random_Robert
Random_Robert's picture

It seems communism for the common man is working out GREAT for our corporate overlords....



Tue, 07/17/2012 - 17:44 | 2626060 q99x2
q99x2's picture

Corn Prices Headed for Record Highs as Crop Shrinks.

Worldwide banker revolution in 10...9...8..

Central Banks have long been known to have zero ammunition against Dust Bowels.

Head em up Move em out.

Tue, 07/17/2012 - 18:01 | 2626109 buzzsaw99
buzzsaw99's picture

corn did the same thing last year. pump and dump. I give it a month, maybe three.

Tue, 07/17/2012 - 18:34 | 2626204 Flakmeister
Flakmeister's picture

If the current forecasts hold, i.e. more of the same for the next 2 weeks, this time will be different...

Me thinks that the real pain will not show up until next year when the price of any corn fed stock will rocket....

Wed, 07/18/2012 - 02:44 | 2627175 hooligan2009
hooligan2009's picture

dont worry about the drought, the fed just has to turn on the liquidity taps and hey presto..problem solved \sarc off

Tue, 07/17/2012 - 21:09 | 2626571 dolph9
dolph9's picture

Are you sheeple starting to understand?

Any and all savings you have, and any and all hope for a decent working life will be taken from you.

You must be a slave so Goldman Sachs can rake in fiat money, and then distribute the crumbs of their corrupt gains to the ghetto queens who can't feed their broods.

In are their bitches, bitchez.

Tue, 07/17/2012 - 23:14 | 2626832 infinity8
infinity8's picture

I have a seriously bad (shitty) attitude at this point. I've been (mostly) working as an independant contractor since '08 and haven't had any real reason to bitch too much relative to a lot of people I know. I have a lot of (quite varied) skills. But, lately, things have gone shit-wise. I have to now seriously consider doing a job that I already know that I HATE (been there), on a temp basis (3-4 mos) for the guaranteed paycheck vs. trying to continue and hope that the $$$ will come in on my other venture(s). I have a week to decide and no hope. MF'r needs to blow already. . .

Tue, 07/17/2012 - 23:55 | 2626941 yrbmegr
yrbmegr's picture

Median US income:  $50.

Tax rate on $50k = 17.2%

Tax rate on long-term capital gains = 15%

Wed, 07/18/2012 - 00:17 | 2627001 Tom Green Swedish
Tom Green Swedish's picture

I work in an industry which every industry relies on yet we are unprofitable.  Make note of my statement.

Wed, 07/18/2012 - 00:57 | 2627073 bankruptcylawyer
bankruptcylawyer's picture

this graph is absurd because it does't take into account the record increase in wages to the slave laborers who in nominal yuan terms were making nothing on farms, but now , with the exports of their products assured to due financial repression and continued trade base don wage arbitrage---they're doing well enough that if they were taken into account for that curve, they'd put labor at the top (relative to other chinese of course) 

Wed, 07/18/2012 - 04:20 | 2627252 deebee
deebee's picture

or get a job at miggy dees. that way you can enjoy a staff discount for meals & put money back into your employers till. win win.

Wed, 07/18/2012 - 06:42 | 2627357 orangegeek
orangegeek's picture

Say hello to deflation.  And it's not done yet.

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