Corporate America is Reporting Record Growth This Past Quarter

These days, the economy seems to get worse and worse, with the job market right alongside it. Because of these tough financial times, I was surprised by the report issued last week by the US Bureau of Economic Analysis that stated that corporate profits are at an all time high.

It seem that while corporate America is flourishing, the middle and lower classes are having an even harder time than ever. Those groups are showing almost no growth in income or jobs, with 1 in 5 Americans out of work or under-employed. In fact, CNBC reported recently that the real jobless rate is closer to 17.5%.

Even though most of us are having a harder time, for the wealthy, this was the best third quarter in recent history. The increase in corporate profits is largely attributed to consumer spending and rising inflation. The New York Times reported that wages were up in the previous quarter, and that it could be the partial cause of increased consumer spending. Of course, the big reason that we are all spending more is that things just cost more. Housing, food and utilities are all costing more than last year.

I would imagine that this growth for corporate America would mean actual job growth, but it isn't clear as of yet. For now, the disparity between the wealthy and the lower classes has grown by leaps and bounds. A report by the Center on Budget and Policy Priorities found that the gap between the two groups has reached the widest in 80 years.

Perhaps this is the time to see if “trickle-down” economic recovery actually works. Because, if what is good for corporations is good for employees is true, we should be seeing some of this increase being passed along to us.

What do you think about the gains corporate America has made? Let me know in the comments.

Are you looking for a job in Finance? Be sure to visit FinancialJobBank.