First, corporate profits have gone absolutely vertical.
Corporate profits divided by GDP — which is a rough approximation for profitmargins– also just shoot straight vertical.
Conventional one-factor economic thinking would question: If corporate profits go parabolic or are exponential, shouldn’t corporations be doing more hiring?
The answer is ONLY if labor worker input is necessary to achieve economic growth for the companies.
Another question is isn’t economic growth a function of private investment and if conditions do not incentivize business corporations and companies to invest their profits then won’t economic growth be tempered?
http://www.businessinsider.com/corporate-profits-go-parabolic-2012-5
