Corporate profits

Larry Summers: Corporate profits are near record highs. Here’s why that’s a problem.

Placeholder while loading article actions Lawrence H.Summersthe Charles W. Eliot University professor at Harvard, is a former tto reassure secretary and director of the National Economic Council at the White House. He occasionally writes Wonkblog articles on national and international economics and policy-making issues. As the cover story in this week’s Economist highlights, the U.S. […]

Corporate profits

U.S. Q4 GDP revised up to 1.4%, but corporate profits fall

WASHINGTON—The slowdown in the fourth quarter was less pronounced than expected, but corporate profits have plummetedshowing that the economy entered 2016 on an uneven footing. Gross domestic product, the broadest measure of goods and services produced in the entire economy, grew at a seasonally-adjusted annual rate of 1.4% in the fourth quarter, the Commerce Department […]

Corporate profits

Corporate profits fall in 2015 for the first time since the Great Recession

WASHINGTON (MarketWatch) – Corporate profits fell 3.2% in 2015 to mark the first drop since the Great Recession, adding further weight to a slow-growing U.S. economy. American businesses have been squeezed by falling exports, cheaper imports and continued caution from cost-conscious consumers. Firms also incurred higher labor costs. Adjusted pre-tax profits fell 7.8% in the […]

Corporate profits

Weird economy of the day

It must be said that this is not the way you normally think. But here’s the claim: corporate tax avoidance actually reduces corporate profits. The mechanism is that tax avoidance increases the cost of capital for businesses. How this happens is that the variance of corporate tax flows increases due to tax evasion and this […]