This is a revealing graph that shows that while US corporate profits (purple) (as a percentage of GDP) are soaring, workers’ income (blue) is falling and small business income (green) is also faltering. What is happening in Malaysia?

Source: Economonitor
Graph: Economonitor

Is this a global phenomenon – given the growing clout of multinational corporations? What does this mean for ordinary workers, not just in the United States but elsewhere?

See this short analysis by Rebecca Wilder in Economonitor.

Are we experiencing the same phenomenon in Malaysia?

13 COMMENTS

  1. Anil

    Recommend you to watch this ‘Breaking The Set’ reporting (Youtube) on Corporate Scandal Profits, America’s Warped Priorities:

  2. Skim Kawalan Harga is used to bully petty and small traders, while BN allows big corporations like TNB, Astro, Telcos to increase prices without proper justification!

    • It is natural for prices of basic things like chicken to go up during festive season due to higher demand (basic economics). Why control price when you allow the Express Bas to have price hike (10%-30%) during festive period?

      Also why never control the price hike of Astro that affects us all year round, not just the festive period?

      I see discrimination here.

      Anil and readers,
      What say you?

  3. Skim Kawalan Harga should be imposed on profit making telcos and Tenaga as they have charged unsuspecting consumers unreasonably.

    • CAP should impose kawalan Harga on Astro as it has being charging high despite its growing customer while giving us lots of repeat show. CAP should not waste time on trivial issue like the billboards in Penang Plaza.

      • CAP too focus on food items not knowing intangible services like Astro or Telco Services (internet connection) is squeezing public hard earned money every second of the day !
        Even as i read anilnetto.com, i am indirectly paying the cronies 🙂
        what say you, anil ?

  4. It is a funny thing really when you consider this:

    In many developed nations the welfare systems governments instituted, for example old age pensions, universal public health, free public schooling up to the end of the first degree (and at least until children leave high school), and paid from the general tax system. These welfare systems were used as a form of wealth redistribution and they came under severe attack globally in the 1980s. Those who attacked it, along with lobbying governments to restrain wages were the individual wealthy, and the big companies. They cried unfair! We pay too much tax. We want users pay systems like GST (tax on consumption), it is fairer on us. Never mind anyone else. Welfare is a dirty word.

    The governments gave-in and now what do we have?

    Huge profitable corporations demanding welfare- (tax incentives, tax concessions, Government money (sorry – peoples money) as incentives to come to a place. These are the clean words to use. If they don’t get what they want they throw tantrums and issue threats………………

    Yes, its a sad sad sad world we all live in today in 2013

  5. What is TPPA? We are walking deeper into the mouth of the dragon. Our leaders are in secret talks with international capitalists and will soon sign agreements that effectively enslave us even more while providing a good excuse for these leaders to do nothing. The “public consultations” that will be organised are a PR sham.

    • I happened to see the interview given by a local university professor on Astro Awani who cautioned that agreeing to TPPA would mean magazines like Playboy could be sold in Malaysia. Now you know why I rather sent my kids to private universities instead of IPTA as I doubt the capability of the local academicians.

  6. TNB profits has gone up, but electricity bill will not go down but is expected to go up with the new system! TNB is quick to learn from Pos Malaysia.

    Privatisation does not help consumers!

  7. In Malaysia

    Corporate earning up, Wages down
    Barang Naik, Wages further devalue
    Cronies gets all, Rakyat get peanuts
    Example Rakyat given permit, Cronies sell you the vehicle.

    • Corporate profits go to high paying executives (CEO, COO, etc). If you buy the trust funds associated with these so-called “high yielding” firms, the profits go to the fund managers (see eg Public Bank / Mutual Funds make tonnes of money and profits first go to the top and investors generally receive peanuts).
      So 1% continues to gain while 99% continue to sweat out to widen the geni-coefficient so evident in jigh household-debts nations like Bolehland.

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