{"id":36784,"date":"2011-06-14T09:27:52","date_gmt":"2011-06-14T14:27:52","guid":{"rendered":"http:\/\/thesocietypages.org\/socimages\/?p=36784"},"modified":"2012-02-20T16:23:51","modified_gmt":"2012-02-20T21:23:51","slug":"u-s-corporate-earnings-2001-2010","status":"publish","type":"post","link":"https:\/\/thesocietypages.org\/socimages\/2011\/06\/14\/u-s-corporate-earnings-2001-2010\/","title":{"rendered":"U.S. Corporate Earnings, 2001-2010"},"content":{"rendered":"<p>Over at Reuters, Felix Salmon posted a chart I found rather stunning given that we&#8217;re hearing new warnings about the dire situation the economy is in and the slow job growth we&#8217;re experiencing. Using <a href=\"http:\/\/www.bea.gov\/national\/nipaweb\/TableView.asp?SelectedTable=239&amp;Freq=Qtr&amp;FirstYear=2008&amp;LastYear=2010#\" target=\"_blank\">Bureau of Economic Analysis<\/a> data, he looked at <a href=\"http:\/\/blogs.reuters.com\/felix-salmon\/2011\/03\/30\/chart-of-the-day-us-financial-profits\/\" target=\"_blank\">total U.S. domestic profits, as well as the proportion of all domestic profits earned by the financial sector<\/a>, between 2001 and the end of 2010. And what we see is that both overall corporate profits, and the finance sector so central to the economic crisis, have bounced back quite well, returning to the levels we saw just before the peak of the boom period:<\/p>\n<p><a href=\"https:\/\/thesocietypages.org\/socimages\/files\/2011\/06\/profits.jpg\" data-rel=\"lightbox-image-0\" data-rl_title=\"\" data-rl_caption=\"\" title=\"\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-36785 aligncenter\" src=\"https:\/\/thesocietypages.org\/socimages\/files\/2011\/06\/profits-500x353.jpg\" alt=\"\" width=\"500\" height=\"353\" srcset=\"https:\/\/thesocietypages.org\/socimages\/files\/2011\/06\/profits-500x353.jpg 500w, https:\/\/thesocietypages.org\/socimages\/files\/2011\/06\/profits.jpg 620w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\n<p>Now, one caveat here: the data are annualized quarterly figures. That means to get the total profits for the year, you don&#8217;t just add them up, as you&#8217;d expect &#8212; each annualized quarterly data point apparently represents profits for the entire year if the growth rate at that point had continued. If you really care, here&#8217;s one <a href=\"http:\/\/dallasfed.org\/data\/basics\/annualizing.html\" target=\"_blank\">explanation of annualizing<\/a> and why you&#8217;d do it. If you want, the <a href=\"http:\/\/www.bea.gov\/national\/nipaweb\/TableView.asp?SelectedTable=239&amp;ViewSeries=NO&amp;Java=no&amp;Request3Place=N&amp;3Place=N&amp;FromView=YES&amp;Freq=Year&amp;FirstYear=2008&amp;LastYear=2010&amp;3Place=N&amp;Update=Update&amp;JavaBox=no#Mid\" target=\"_blank\">BEA website<\/a> allows you to look at profits annually, instead of quarterly, so you don&#8217;t have to worry about it.<\/p>\n<p>Anyway! Point is, it complicates the general perception we might get from news reports that everything in the economy is awful and there are no profits to be made. Ongoing job stagnation and media focus on the negative economic news doesn&#8217;t mean all parts of the economy are suffering equally, or that as soon as corporate earnings rebound, the benefits would quickly reach workers in the form of new job opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over at Reuters, Felix Salmon posted a chart I found rather stunning given that we&#8217;re hearing new warnings about the dire situation the economy is in and the slow job growth we&#8217;re experiencing. Using Bureau of Economic Analysis data, he looked at total U.S. domestic profits, as well as the proportion of all domestic profits [&hellip;]<\/p>\n","protected":false},"author":50,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[36,12498],"class_list":["post-36784","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-economics","tag-economics-great-recession"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts\/36784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/users\/50"}],"replies":[{"embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/comments?post=36784"}],"version-history":[{"count":4,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts\/36784\/revisions"}],"predecessor-version":[{"id":45116,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts\/36784\/revisions\/45116"}],"wp:attachment":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/media?parent=36784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/categories?post=36784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/tags?post=36784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}