SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?


To: tejek who wrote (133557)5/1/2013 9:40:31 AM
From: Road Walker  Read Replies (3) | Respond to of 149317
 
Explain how low interest rates have lead to declining operating earnings.

He can't because it hasn't. The GROWTH in operating earnings may have declined, but they are still setting all time records. US corporations have figured out how to increase profits regardless of the growth in GDP. Part of it is to avoid taxes, and regulation, and the other part is to take from overall worker compensation.

It's a real part of why the economy is stagnant... corps really have no vested interest in making things grow. If we get closer to full employment they'll have to compete for workers, and that will hurt the bottom line. Stuff like good insurance and pensions are expensive.