The quarter completed at the end of September was the best quarter ever for American corporations.
American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or noninflation-adjusted terms.Record profits are partly due to productivity gains and barely perceptible employment growth. In fact, the lack of new hiring is one reason for the profits. Employees are doing more with less, and the benefits are flowing upward to executives and the wealthy.
As I argued in "Investment doesn't create jobs", the reason there's hardly any hiring is that there's not enough demand for goods and services that would require and reward hiring.
If there were demand, then profits could be invested and thus help unemployment. Until there is demand, not so much.
Only the government is in a position to close the demand gap. But Republicans will not permit it. Their prescription: Suffer while your betters enjoy the fruits of your labor - if you're lucky enough to still have a job.