Peep this chart, bruh:
As you can see in the chart above, the ratio between employee compensation to American GDP is at the lowest level in US history. In fact, the ratio is 4% LOWER than when the Great Recession occurred and since Obama took office.
As a quick primer, GDP is gross domestic product. GDP represents the total value of all goods and services produced during a specific period of time. GDP is regarded as one of the most important economic figures as it encompasses everything produced by everyone from businesses to individuals. GDP is supposed to reflect the economic livelihood of a country when compared to previous GDP levels.
Ok, back to the chart.
All you’ve heard from the Obama Administration, especially since the 2012 re-election, is that America’s economy is stronger than ever and fully “recovered”. Obama and his cronies usually point to highly manipulated and highly distorting statistics to signify economic growth, such as the basis unemployment rate. In fact, if you listened to Obama’s final (thank god) State Of The Union, you’d think he single handedly fixed America and that no Americans are struggling financially. Unfortunately for Barry O, no amount of repetitive lies will keep the non-sheep from seeing the truth. As we mentioned, the ratio of employee compensation to GDP is at its lowest levels in American history and 4% lower than when Obama took office. Now, what if I was to tell that there’s a cherry on top to this fact? Is that something that you might be interested in? Well….
Peep this chart, bruh:
In the EXACT SAME TIME PERIOD, corporate profits have skyrocketed to, you guess it, highest levels in American history. So riddle me this? How the fuck do we have employee compensation relative to economic growth shrinking a mile a minute, when corporate profits are raising the roof?!?
Hmm well there are 2 very obvious reasons that these figures could simultaneously be moving in opposite directions (at least to me).
- Higher corporate taxes.
- More corporate regulations
Corporate taxes are higher in American than in any other country in the world. I don’t know about you, but that seems a bit backward. America’s supposed to be the greatest capitalistic country in the history of planet earth, that was founded based on the idea of limited government intervention. Of those potential governmental inventions, taxes were the biggest concern for the Founding Fathers. Fuck I mean, the phrase “no taxation without representation” that was drilled into our childhood brains was a result of government overreach.
But nope, Americans have been forced to pay the highest cooperate tax rates in the free world. And under Obama, tax rates have increased to record highs.
The other major governmental intervention that’s likely contributed to this divergence between compensation and corporate profits is government regulation. Specifically, over regulation.
Listen, I’m all about understanding balance in our society. Governments have had to implement regulations throughout the history of man kind as a reaction to individuals abusing the “loop holes” of a free market. This ensures that capitalism is actually functioning as a true free and fair market.
The American government significantly increased the size and scope of corporate regulations over the past 7.5 years. Government officials need a reason to pat themselves on the back while simultaneously giving voters a fake reason to support their re-election. Unfortunately, many career politicians have no real or material experience in the private sector. Without this experience, government officials are implementing new rules that they have no idea of what the consequences may be.
A perfect example of this is the employer-mandates on Obamacare. Small-businesses with over 50 employees were forced to cover additional health care costs that they previously were not responsible for. Do a quick Google search, and you’ll find countless anecdotes of small-business entrepreneurs having to either fire employees or make them part-time in order to afford the mandated law.
While the government thought they’d be providing Americans with better healthcare coverage, they inadvertently cost Americans their jobs.