Quiz: Name the president under whom U.S. corporations posted their all-time highest quarterly profits, and the political party that was in power for that period.
Answer: Not George W. Bush, not the GOP, not Ronald Reagan.
No, U.S. corporations posted their all-time highest profits in the third quarter of 2010.
When President Barack Obama, who has been reviled as a “socialist” (and far worse) by many right-wingers, held the White House and Democratic Rep. Nancy Pelosi and Sen. Harry Reid led the Democrats who held sway over Congress.
How could this be? For one, it exposes the know-nothing lie that Democrats are bad for business.
If you look at corporate profits, and even Wall Street, it’s clear over the long term that Democrats are better for business than the GOP, notwithstanding certain impressions held by the uninformed.
Why, corporate profits have been growing ever since President George W. Bush left office.
That must be a bitter pill for the right-wing partisans to swallow.
It’s not all good news, though. Those profit came at the expense of workers, nearly 1 in 5 of whom are without jobs.
From The New York Times:
Corporate profits have been doing extremely well for a while. Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history.
This breakneck pace can be partly attributed to strong productivity growth — which means companies have been able to make more with less — as well as the fact that some of the profits of American companies come from abroad. Economic conditions in the United States may still be sluggish, but many emerging markets like India and China are expanding rapidly.
Tuesday’s Commerce Department report also showed that the nation’s output grew at a slightly faster pace than originally estimated last quarter. Its growth rate, of 2.5 percent a year in inflation-adjusted terms, is higher than the initial estimate of 2 percent. The economy grew at 1.7 percent annual rate in the second quarter.