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Chart of the Week: Selected Component Shares of National Income

Posted By Barry Ritholtz On May 17, 2004 @ 12:44 pm In Finance | Comments Disabled

Several commentators have been perplexed as to why voters feel that economically distressed despite the positive data points about the macro economy. This chart from the Federal Reserve helps to explain why voters are less sanguine about the economy:

Selected Component Shares of National Income
profits_vs_labor
Source: St. Louis Federal Reserve [1]

In a recent publication detailing national economic trends, the St. Louis Fed shows that while profitability has been trending strongly upwards, compensation has been going the opposite direction. Compensation is now at 25-year lows. That spread explains the phenomena of how the economy can improve while people feel worse off about their own economic situation.

Random Items:
A perfect market [2]
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Stock-picking Web site back in business, with a handful of strategies [4]
Why the Saudis May Not Rescue Oil Markets This Time [5]
In Proxy Votes, CalPERS Hides True Agenda [6]
Thinking like a director can bring up tough questions [7]

Quote of the Day:
“Rather to fail with honor than to succeed with fraud.”
-Sophocles [8]


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URL to article: http://www.ritholtz.com/blog/2004/05/chart-of-the-week-selected-component-shares-of-national-income/

URLs in this post:

[1] St. Louis Federal Reserve: http://research.stlouisfed.org/publications/net/20040501/net_20040507.pdf

[2] A perfect market: http://www.economist.com/surveys/displaystory.cfm?story_id=2646107

[3] Mutual funds face minimal scrutiny: http://www.sunherald.com/mld/sunherald/business/8678286.htm

[4] Stock-picking Web site back in business, with a handful of strategies: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/05/16/BUGB06LTL71.DTL&type=business

[5] Why the Saudis May Not Rescue Oil Markets This Time: http://www.nytimes.com/2004/05/16/business/yourmoney/16saudi.html

[6] In Proxy Votes, CalPERS Hides True Agenda: http://www.latimes.com/business/la-fi-letters16.2may16,1,4756556.story?coll=la-headlines-business

[7] Thinking like a director can bring up tough questions: http://seattletimes.nwsource.com/html/businesstechnology/2001930155_jaffe16.html

[8] Sophocles: http://www.imagi-nation.com/moonstruck/clsc1.htm

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