Underreported Story Alert: American Businesses Had Their Best Quarter Ever

by Hillary Busis | 12:20 pm, November 23rd, 2010

» 14 comments

Here’s something to get you in the holiday spirit: According to Catherine Rampell at the New York Times, last quarter’s corporate profits were the highest on record. “American businesses earned profits at an annual rate of $1.66 trillion in the third quarter,” Rampell writes—the largest amount since the government began tracking earnings more than 60 years ago.

This news, unfortunately, isn’t unequivocally good. The $1.66 trillion figure hasn’t been adjusted for inflation, so it could be misleading to definitively call this quarter America’s best. Rampell also points out that—surprise!—what’s been good for big business hasn’t been good for individual American workers:

Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history.

This breakneck pace can be partly attributed to strong productivity growth — which means companies have been able to make more with less — as well as the fact that some of the profits of American companies come from abroad. Economic conditions in the United States may still be sluggish, but many emerging markets like India and China are expanding rapidly.

Tuesday’s Commerce Department report also showed that the nation’s output grew at a slightly faster pace than originally estimated last quarter. Its growth rate, of 2.5 percent a year in inflation-adjusted terms, is higher than the initial estimate of 2 percent. The economy grew at 1.7 percent annual rate in the second quarter.

And here’s the kicker: “The economy is not growing fast enough to reduce significantly the unemployment rate or to prevent a slide into deflation,” says economist Paul Dales. “This is unlikely to change in 2011 or 2012.”

So, okay, maybe scratch that whole holiday spirit thing. The full story’s at NYTimes.com.

Business News, Great Recession, New York Times, Recession, The Economy, The Economy Stupid

skyfet

Now where are the phonies crying about how Obama is destroying America. Where is Limbaugh and his followers? The summary is this, Obama and his cousin W are all in the pocet of Big business, that’s why they pander to them. The solution is campaign finance reform, the real one. They are all beholden to those who sponsor their rubbish campaign.
ProgLib

I’ll help Fox with the headline: “Corporate profits rise to highest level ever, in spite of Comrade Obama’s marxist fiscal policy.”
zombietimeshare

An administration that lacks a clear tax policy, other than it is going to tax the crap out of businesses, means business are going to save as much money as possible. Big profits are easy when you cut expenditures like capital investment in durable goods, outsourcing work and cutting employees.
skyfet

The dummies want to go back to the 50′s, where life was good for them. Taxes was 90%= then.

Business killing policies by the D’s- in reality business cant be better.
PBerg

Yup, Yup, and WHERE is the Trickle down from these Giant profits? Record bonuses paid to the execs who cleverly downsized and sent job overseas the last few years. Never SPENT the money in the economy—NEVER created jobs.

WHEN are Republicans finally going to admit—that Reagan’s brain (?) child laid an egg ! That Bush’s tax cuts to the wealthy and corporations, merely caused the Greatest Recession in 26 years !!

I have heard of denial before—but Republicans take the prize for close minded, blind, Sheep !
skyfet

Tax cut to the wealthy never reduces the deficit, rather increases it.
Tax cuts doesn’t create jobs, rather they keep it in their pockets.
Business cannot be better, yet they ship jobs abroad and pay less taxes there, ships the products here for you to buy.
When are you going to stop voting against your own self interest and wake the hell up.
The most blatant recent examples involves the Koch Brothers shipping the Tea Parties around, like rented mobs.
The term useful idiots comes to mind.
http://endisfar.com theendisfar

This story has Bull Shit written all over it. First, they have extrapolated the 3rd Quarter earnings over an entire year. Second, as the story admits, INFLATION is not calculated. Third, companies are using accounting tricks to realize money this year so they don’t get f*&ked so bad next year since every indication shows that they will.

Problem is that Democratic Socialist Policies are actually good for Big Business while helping to destroy Small Business. It reinforces Crony Capitalism which is Double Speak for Monopolistic Central Planning ideologies such as Mercantilism, Corporatism, or any number of the multiple flavors of Socialism.
http://Mediaite.com uggugg

ONLY in America, during a near depression the Democrats prevented can industry boast $ 1.66 trillion profits in the 3rd quarter the best in 60 years of government trackings. While record profits takes place. Industry through the workings of the Republican Party, continue to bash the Obama Administration saying they are doing everything wrong blows the minds of intelligent people. The busy wage earners, too busy to fully follow politics enough to learn the truth and only get tidbits of information taken out of context intentionally or accidently causing them to make bad voting decisions. This is what has happened during the midterm elections. Now we will all suffer through this while big business laughs all the way to the bank. The voters will not benefit from their votes.
Alz

skyfet said:
Now where are the phonies crying about how Obama is destroying America. Where is Limbaugh and his followers? The summary is this, Obama and his cousin W are all in the pocet of Big business, that’s why they pander to them. The solution is campaign finance reform, the real one. They are all beholden to those who sponsor their rubbish campaign.

This is good news. It means when the liberalism is reduced in Washington, that businesses will be able to start growing here.

What the article misses and most liberals miss is that the liberalism itself is an impediment. People are scared because of the massive uncertainty that Obama and the Democrats foster.

In the mean time, business will invest outside the US.
http://endisfar.com theendisfar

uggugg said:
ONLY in America, during a near depression the Democrats prevented can industry boast $ 1.66 trillion profits in the 3rd quarter the best in 60 years of government trackings.

Hello? “American businesses earned profits at an ANNUAL RATE of $1.66 trillion in the third quarter,” ANNUAL RATE. They extrapolated the profits from the THIRD QUARTER over an ENTIRE YEAR. This is why READING COMPREHENSION is part of the SAT Exam.

Corporations are using accounting ‘features’ to realize Profits earlier than they otherwise would in order to cash in before they are forced to bend over next year. Get ready for the ride that PROGRESSIVES, both D’s and R’s have set into motion.

Centrally Planning the lives of 300 million FREE individuals will always result in unintended consequences, that is why ‘they’ are attempting to secure their Authority so they can force us to OBEY their ‘Advice’.
BobHahn

Tax the wealthy to the max! Tax business! Use the money to pay unemployment benefits to the middle class! Yay government!
NORBIT

Of course they did! – They have THEIR MAN in the White House!

Hope & Change! LMAO!!

On behalf of Goldman, JP Morgan, Citi & Hedge Funds throughout wall Street…THANK YOU BARRY!!!
LMAO!!!

…and on the same day the Obama supporter who defends his policies is FIRED!
Hope & Change! LMAO!!!
SarahP

NORBIT said:
Of course they did! – They have THEIR MAN in the White House!

Hope & Change! LMAO!!

On behalf of Goldman, JP Morgan, Citi & Hedge Funds throughout wall Street…THANK YOU BARRY!!!
LMAO!!!

…and on the same day the Obama supporter who defends his policies is FIRED!
Hope & Change! LMAO!!!

I’d like to congratulate you on three LMAO’s in one post.
http://www.facebook.com/people/Richard-McGinnis/100000472625231 Richard McGinnis

“—surprise!—what’s been good for big business hasn’t been good for individual American workers:”

Be prepared for the next two years of no improvement for the American Worker…