Alternative Visions – How the Rich Get Richer in America – 04.25.15

Jack Rasmus discusses the recent report that the wealthiest 1%, who own most of the stock in US corporations, will receive more than $1 trillion in stock buybacks and dividend payouts in 2015. Buybacks-dividends delivered $3.8 trillion since the end of the recession in 2009, with another trillion coming this year. And that’s only for the largest S&P 500 corporations, Jack explains. Net profits for US corporations totaled more than $5 trillion since 2009 as well. Jack explains how that $5 trillion in profits derived from cost cutting, mostly labor costs, and rising corporate financial asset investment and speculation as well.  $5 trillion in profits minus $3.8 trillion in buybacks and dividend payouts, leaves about the $1.3 trillion remaining in undistributed profits still on corporate balance sheets, Jack explains.  That’s how the rich get richer in America. But that’s not how business, politicians and even liberal economists explain income inequality—choosing instead to focus on productivity, tax, CEO pay as causes.  None dare touch the corporation as the real source and the conduit for distribution of income and wealth to the 1%, Jack argues.  Jack concludes the show with another look at US GDP numbers that will be announced on April 29 for first quarter GDP, following up his comments on a prior April 4 show.  There may be a big surprise, he warns, with GDP collapsing again (for the fourth time) to near zero growth, as the USA continues on its ‘stop-go’ economic scenario and as the current 5-6 years of ‘recovery’ since the last recession reaches its final years.

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