Josh Brown – a very smart and funny person – lays it out so even Forbes magazine can understand what is happening to the U.S.:
“Well, you enormous fucking idiots, you fired all your customers. You’ve spent the last decade or so suppressing wage growth in the name of “creating shareholder value” and now even your shareholder base is disappearing.
You allowed wages to stagnate for a decade and made every decision you could in the service of nudging the quarterly profit higher, thinking less of the yearly profit and virtually nothing of the long-term viability of your business.
Wow. Corporate profits are extremely high, but CEO’s are still worried about customers coming into their doors. It’s because we do not have enough demand to fully use all of the resources we have at our disposal. We have a huge Aggregate Demand problem, and that’s what’s causing the miserable economic times.
(Update: added link to the Josh brown post.)