"US corporate profits surge to record as worker payouts wilt" (FT)
byu/librariancap inEconomyCharts
U.S. corporate profits just hit roughly $4.8 trillion annualized.
That’s 18% of national income, the highest share since the aftermath of WWII.
At the same time, employee compensation fell to about 60% of national income, the lowest share since the 1950s.
Real hourly earnings actually fell 0.2%.
Look at the gap.
Since the end of 2019, real hourly wages are up only about 3%, while real corporate profits have climbed roughly 50%.
And this isn’t just a story about companies selling more.
Q2 profit growth got a major boost from roughly $71 billion in tariff refunds after the courts struck down most of the 2025 tariffs.
So some of this profit surge may not last.
But the bigger point is still there.
Corporate America is taking a record share of the income being generated, while workers are taking a record low share.
That’s why the stock market can look fantastic while millions of people still feel like they’re falling behind.
The economy can be doing great for capital.
And still feel terrible for labor.