Re: surge in U.S. corporate profits

From: Paul Cockshott (clyder@GN.APC.ORG)
Date: Thu May 20 2004 - 16:15:52 EDT 

On Thursday 20 May 2004 13:56, Allin Cottrell wrote:

> Yes.  Another perspective on the course of profits is the Kaleckian
> identity:
>
> profit = investment + budget deficit + net exports - workers' saving
>
> >From this point of view, comparing 2003:4 with the previous profit
>
> peak in 1997:3, we have (all in current billions of dollars):
>
>                             1997:3  2003:4  change
> fixed private investment    1347.0  1756.0  +409.0
> federal deficit               35.0   417.9  +382.9
>
> These both boost profit, as does a fall in personal saving of 63.9.
> Over the same period the U.S. current account balance has fallen by
> 97.6, a relatively slight offset to the big boost from private
> investment and federal deficit spending.
>
I see you have already answered my first question.

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