Corporate profits hit record rate

But wait….I thought President Obama was the most anti-business president ever

U.S. companies hauled in profits at a record annual rate of $1.66 trillion dollars in the third quarter, according to a report by the Department of Commerce Tuesday containing a number of economic indicators.

Corporate America is making a strong comeback this year. The rate of growth is set to be one-third faster than the last two years, which hovered around $1.2 trillion.

Someone remind me again how exactly President Obama is the most anti-business president ever, because the numbers certainly don’t seem to back up that contention.

Share:

Related Articles

3 thoughts on “Corporate profits hit record rate

  1. Selective reading, Zach? The REST of your link:

    “Firms, however, are still hesitant to pick up hiring at quite the same pace. Faced with consumer demand that’s still slack, companies have been more inclined to hold cash on their balance sheets. The unemployment rate was at 9.6 percent in October.

    Adjusted for inflation, however, this quarter’s annual rate does not set a record, which is still held by the third quarter of 2006.”

    Taking one number (such as corporate profits) is foolish. YOu need to look at the other factors facing the economy. And simply saying that companies are having record profits says very little to the overall health. Perhaps these so-called record profits are due to cutting inventory and cutting the workforce…now how is that helping anything?

  2. A lot of corporations are in survival mode, they are sitting on piles of cash because of a perceived uncertainty. You’ll notice that there have been significant spending cuts in R&D and capital expenditures. Also, you’ll notice that productivity is very high, meaning that companies are laying people off and doing the job with fewer workers.

    Given the cash positions of many corporations I think it is likely that we will see a consolidation phase with many high profile takeovers and buyouts.

  3. Demand is low because the unemployment is too high. They were sitting on their profits to help influence the election, we will see what they do with them now.

    Super – the uncertainty thing drives me crazy. That is all chad lee ran on. We want a “free market” with no regulations but we also want compete certainty as to what the future holds? really?

Comments are closed.