May 7, 2016

Corporate profits as a percentage of GDP reached record high. Employee income, as a percentage of the same, reached record low, in 2012.


The rich and poor pay the same
price for a gallon of gas.  Even
though the price be the same,
the burdens caused by inoppor-
tune price-hikes are different,
creating burdens upon the work-
ing poor, disabled, aged, and
businesses which have high
fuel operating costs. 
To start, proportionality, as opposed to linear arithmetic, is how to detect any wide-
spread motions toward a state of renewed economic imbalance and yet another eco-
nomic crisis.   In the third quarter of  2012, American corporate net profits reached
their highest percentage of GDP, either since 1968 (according to the reasonably
credible Barron's Magazine) or  since the beginning of the United States (accord-
ing to other credible sources.)  Yet, it was during the 2012 election when Romney,
Ryan, and the roster of right wing radio talk show hosts lied to America about the
economy, in making very profitable corporations sound as if they were on the
verge of failing.

Truth & American AM radio have become oxymorons.  Truth and AM radio have
become mutually exclusive.  In fact, truth on AM radio, outside of sports shows,
farm reports, and weather reports, is non-existent for consecutive hours at a time.
This includes the pro-Reagan prince of virtual psychosis and observed non-reality,
George Norry of the Coast to Coast AM talk show which preoccupies its air time
with claiming that humanity was an extra-terrestrial test tube invention, while nev-
er stating who created the extra-terrestrial test tube jugglers, in the first place.

But, in all reality, the Coast to Coast show is a long campfire story for those bored
to death with life and who are in need of science fiction entertainment & conspiracy
theories.  The problem is that fantasy is presented as fact on that show.  However,
I can assure you that there is no Howard Johnson's or Holiday Inn on the dark side
of the moon.  Nor is there any UFO filling station there, where you can get a free
mug with every third fill-up.  Norry needs to quit interviewing psychotics such as
those who claim to have time traveled as part of a U.S. military project, lest he be
counted amongst those psychotic.  The show is a twisted circus, as it is.

2012 Net Profits

Whatever be the correct benchmark, 3rd Q net profits of 2012 were 18.6% higher
than profits of the year prior.  Simultaneously, workers' wages fell to their lowest
percentage of GDP, ever.  In fact, household spending in August of 2012 rose .5%,
while wage & salary income only rose .1%.   That's Point 5 Percent vs. Point 1%.

More importantly, gasoline prices rose 9.0% during August 2012, logically explain-
ing the rise in spending.  In as much, while corporations were raking in record prof-
its, Romney, as presidential candidate, was lying to America, claiming that corpora-
tions were being suffocated into bankruptcy and economic ruin.

The only thing consistent about Mitt Romney (the descendant of cultic polygamy
who changed his political platform more often than square dancers change their
partners) was that consistently lied to the world.  Anyone who lies as often as did
Romney is literally a danger to society.  He was and is inconsistent in all things.

http://www.businessinsider.com/corporate-profits-just-hit-an-all-time-high-wages-just-hit-an-all-time-low-2012-6

http://money.cnn.com/2012/09/28/news/economy/income-spending/index.html
 
http://www.bizjournals.com/sanjose/blog/2012/12/corporate-profits-hit-all-time-high-as.html

http://www.dailykos.com/story/2012/12/03/1166878/-Corporate-profits-are-highest-ever-share-of-GDP-while-wages-are-lowest-ever

Barron's Counterpoint, in that it's at variance with the other reporting agencies:
http://blogs.barrons.com/stockstowatchtoday/2012/12/06/corporate-profits-arent-as-high-as-you-think/

The following is absolutely essential to memorize, if you are an honest person who
seeks truth in matters of economics and accounting.  If you're a lying propagandist,
the following is something that you want to hide from civilization:

A de facto tax exacted upon the poor, which adds to their burden, is a cost of living
increase, whenever the poor are not compensated.  A double taxation effect on the
poor is a sudden retail price hike in addition to any uncompensated cost of living in-
crease, Such was the case in August of 2012.  In this instance, a de fact tax is under-
stood to be something taxing and burdensome, as opposed to something which turns
into government revenue.  Keep this in mind.  Also keep in mind that cost-of-living
increases in Social Security are only paid-for, in part, by those businesses who cause
the increases.  Payroll taxes are also paid-for by the employees who have to face the
cost of living increase.  The bottom line is this:  

It's the wealthy business owners who end up taxing the poor, in a de facto fashion.
In the alternate, you can call it draining the poor, instead of taxing the poor.  What-
ever you call it, it necessitates cost of living increases to Social Security Insurance
recipients.  This burden factor is one of the reasons why a flat tax will turn a nation
into a monopoly board, comprising:  1} the very rich, 2} a class of staff managers
who will serve the roles of white collar task masters, 3} and the poor.  In as much,
when the rich complain that the poor aren't paying enough taxes, the response is that
the poor pay de facto taxes every time they purchase any product or service marked-
up by the rich who have other  people doing the hard work for them.  This especially
the case, as it applies to gasoline and home heating prices.  That is to say, the money
needed for the poor to pay added taxes is already in the hands/pockets of the rich.

The other reason why a flat tax will be disastrous is something known as marginal
utility.  Marginal Utility is defined as the incremental increase in usefulness for ev-
ery added unit of use of something.  To the poor, a small amount of burden is pro-
portionally worse than a much larger sum exacted upon the wealthy.   One example
is the rise in the price of gasoline.  Rich and poor pay the same price for a gallon of
gas.  It takes more of a bite out of the poor.  Therefore, you need to gauge things ac-
cording to proportionality and "comparative disadvantages," in order to detect when
an economic crisis is en route to your society.

The treble (triple) burden effect on the poor comes into play when the following
occurs:

1} a drain of disposable income,
               when is caused by a decrease in working citizens' income,
                                                                                       as a percentage of GDP ...
2} while corporate profits,
                  as a percentage of the same GDP,
                                                                  increase ...

3} and while consumer prices rise.

Concerning the complaint that the working poor get total income tax refunds, if it
weren't for the poor and middle class working citizen, the wealthy would have zero
income.  After all, the wealthy don't make those Mac Trucks, Ipods, Master Locks,
grocery products, automotive parts, paved highways, and latté drinks on their own.
Without the working man, there is no rich man. 
__________________________________________________________________