• Corporate profits versus labor income: Risk and reward versus slow and steady

    10 days ago - By FRED

    This FRED graph shows the evolution of two sources of income in our national economy: the compensation of employees through wages and other salary compensation, and the compensation of capital through profits. Both series are adjusted for inflation and both start at the level of 100 in 1954, which is the first year that's considered “post-war” for economic purposes. (NOTE: The economic impact of the Korean War has essentially vanished.)
    Eyeballing the data leads to two major conclusions. First, corporate profits move a lot, especially in response to general business activity. Profits tend...
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