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Trivia Tidbit Of The Day: Part 146 -- Corporate Profits.

Corporate Economic Profits, Share Of GDP-

Yet another strengthening economic indicator (how many of these do we need to have before the case reaches its critical mass?):

Source:

CBO (.pdf).

Notice how, in the late 1990s, the economy was a classic "great on paper" bubble. The economy was growing. GDP was growing. But businesses were not making more money, because they weren't really selling anything.

Of course, that's a bit of an overstatement and an oversimplification, but think about it. How could profits have lagged at the time when the economy was roaring? How could the economy have been at its strongest, in the history of the world, without producing increased profits?

And notice how in the current economy, corporations are profiting more, commensurate with the pace of economic growth. Productivity is up. GDP growth is up. Jobs are being added. Inflation is relatively low, even with high energy prices. Profits are up. Yet some Democrats think they're going to run on the weak economy in 2006 and beyond?

Good luck with that.

UPDATE:

John Kyl with more on the strong American economy.

Previous Trivia Tidbit: Business Fixed Investment.

Posted by Will Franklin · 22 August 2005 10:22 AM

Comments

Posted by: Steve at August 22, 2005 10:57 AM

Posted by: onlineanalyst at August 22, 2005 12:29 PM