This article via Yahoo news caught my attention: Five years into recovery, Dow Companies squeeze workers as investors thrive
I think this picture spells it out rather well.
“As the chart shows, the 30 huge companies that comprise the Dow Jones Industrial Average have barely nudged their employee ranks higher…”
But this is even more astounding:
Over the past five years, total profits of the current Dow 30 members surged by more than 42% through the end of 2014, to nearly $320 billion. This has driven the average annual profit per employee up by more than 34% since 2009, to $48,887.
According to this CNN article from August, the median household income is $53,891. That means these 30 companies are pocketing 90% of what an household earns. That’s out the door, cash in the pocket 90% of what a household works all year to earn. Now, I’m not sure, but I think that household income is pretax and I doubt they get to hid that $53,891 in some account out of reach of the tax man. In fact, I’ll bet that household needs every bit of that money just to get through the year.
Well, the 30 are not hiding all of it:
Dividends paid by the Dow 30 are up better than 30% the past five years, according to FactSet.
Read the article. The author does his best to explain this situation, but it’s seem more like excuses. A grasping at straws to dismiss what we know has been an intentional drive to get to this point. My interpretation of it is that these companies are now able to “grow” the pot of money without actually having to increase their sales. True money from money… but, they are scared that this magic will leave them and then what?
$48,887 PROFIT PER EMPLOYEE!