The purpose of this disclosure is to explain how we make money without charging you for our content.
Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.
Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.
Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.
Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.
To find out more about our editorial process and how we make money, click here.
For more than 30 years, an overarching trend of rising corporate profits and stagnating or falling wages and benefits for workers pressed onward like an economic juggernaut, an apparently immutable law of America’s model of capitalism. It’s early yet, but there is evidence to suggest that might be changing, the New York Times reports.
As a share of the national income, worker compensation rose from 61% in 2013 to 62.6% in 2015. Meanwhile, corporate profits as a share of national income fell from 14.2% in mid-2014 to 12.1% at the end of 2015. “The evidence available so far in 2016—steady growth in wages and weak earnings for publicly traded companies—suggests that the reversal is continuing this year,” Neil Irwin writes in an economic analysis in the New York Times Tuesday.
Irwin notes that the steep decline in the price of oil in recent years accounts for part of the relative decline in the fortunes of corporate profits, which fell $64 billion from 2014 to 2015. But a low unemployment rate and strong hiring over the past three years has also forced employers to pay higher wages and salaries — which climbed 10% from 2013 to 2015 — and offer better benefits, which increased 6% over the period.