Pictured: Robust employment data, and the rest of the economy. Source: Claire Adams
The Silver Lining with a Dark Cloud
The one bright spot in the macro data this cycle has consistently been employment and incomes. This is a reversal from what we have seen in previous cycles, where corporate profits have outpaced incomes.
* Both are after-tax, nominal dollars
Corporate profits have outpaced incomes, beginning in the 1990s but accelerating through 2012. But if we start that chart at 2012, a different picture emerges:
In this 7-year window, incomes have greatly outpaced corporate profits,