US CEO pay, bank profits, corporate cash set new records

(This is neoliberal fascism and it is accelerating under the “CHANGE” presidency of Donald Trump)

by Barry Grey, WSWS

Across the United States, workers are being told by Democrats and Republicans alike that there is “no money” for decent wages, pensions or health care. Teachers from West Virginia to Oklahoma, Kentucky, Arizona and other states are rebelling against near-poverty wages and years of school cuts only to be told by the politicians and union leaders that their demands are “unrealistic” and cannot be met.

But a series of reports on CEO pay, bank profits and corporate cash released over the past week reveal that corporate America and the financial oligarchy are wallowing in record levels of wealth. The Washington Post reported on Friday that, boosted by the tax cut for corporations and the rich passed in December, the biggest US firms “find themselves sitting on an Everest of cash,” with “profits pouring in faster than they can find productive ways to spend it.”

“As of the end of 2017,” the Post noted, “companies in the Standard & Poor’s 500 stock index were sitting on the largest cash pile in history: nearly $1.8 trillion.”

The windfall from the Trump tax cut, passed with no serious opposition from the Democrats, is not, contrary to the lies used to justify the law, going to create new, good-paying jobs and rebuild the country’s crumbing infrastructure. It is being used for stock buybacks, a parasitic squandering of the wealth produced by the labor of the working class to drive up stock prices and the portfolios of rich investors and corporate executives.

In February alone, US corporations announced a single-month record $150.7 billion in buybacks. They are expected to hit a new yearly record in 2018, surpassing the previous record of $589 billion set in 2007, the year before the Wall Street crash. Over the past 10 years, the American capitalist class has spent $5.1 trillion in stock buybacks.

To put this in perspective, the Oklahoma teachers, among the lowest-paid in the country, demanded $200 million in additional school funding to begin to address a decade of brutal cuts. The state government agreed to a mere $50 million, which the Oklahoma Education Association hailed as a “victory.”

The amount requested by the teachers represents a mere 0.01 percent of the cash being hoarded by US corporations…

[read more here]

4 Responses

  1. Awesome work. Thanks for posting it.

    I’ll not vote again unless there’s a true Socialist hidden somewhere on the ballot.

    Fat chance of that ever happening though.

    • seems the time we ELder better Git on the next ice floe…pass On…
      but i gotta Blow pentaCia. Git Nuke

  2. O ouch. Strangle the ‘rich’ &der stooges.

    Imagine their Neck/ ‘wealth’ suffer Die! -rumpf devil$

    • And I voted for the bastard, hoping against hope for change. Silly me.

      Imagination gone. Book me a ticket on that ice, please.

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