The markets threw a little temper tantrum yesterday when they "only" got a 0.25% rate cut from the Fed and then, adding insult to injury, Chairman Powell did not promise more cuts for sure but said he might if wages stay low – so there's more incentive for our Corporate Masters to not pay us a fair share of the profits.
As you can see from the chart on the right (which has gotten worse, not better, since), Corporate Profits do keep rising but wages have been on a completely different track – especially since the Financial Crisis as Corporations were bailed out and people were not. The $15 minimum wage is hopefully going to balance that just a bit – but we're miles away from anything resembling a fair distribution.
Corporate Profits used to be 5% of GDP ($1Tn today) and Wages were 52% of GDP ($10.4Tn) in the 60s but now Corporate Profits are $2.4Tn and Wages are $8.8Tn but the difference is Corporate Profits are shared by the Top 1% while Wages are split by 100% of the workers, including the Top 1% who double dip by taking wages that are now up AVERAGING 300 TIMES what their workers make.
If you really want to Make America Great Again – maybe we should go back to the days when CEOs made 1/10th of what they do today and workers made 16% more than they do now. That's the problem, in order for one rich guy to go from 20x the average wage to 312x the average wage – you have to take 16% away from the other 99 guys. Why do they put up with that?
They might not for long as Democratic Candidate and Mayor of New York City said in yesterday's debate that "We will tax the Hell out of the Wealthy" saying:
“For 40 years the working people have taken it on the chin in this country. For 40 years the rich got richer and they paid less and less in taxes. It cannot go on this