Considerations about the Recovery after the Great Recession

After the Great Recession there have been two recoveries, in my opinion. One quite muted that corresponds to "Main Street" and a second one, more powerful and stronger for anyone who own Shares, Funds and 401Ks.

Here below some data

• If we compare the period 2009-2017 with the average of the last 50 years, post-tax profits were 31% higher as a share of GDP
• Pay and Wages were 10% lower

Please take a look at the chart below provided by the Bureau of Economic Analysis & The Economist

Unfortunately, the majority of the Profits earned by Corporations during the last 10 years have been spent on Share Buy-backs and M&A Activities.

In my opinion the result has been that consolidation in many industries has reduced competition and hence productivity growth.

Real wages have been flat or even worse, that is really a pity. I hope that things will change during the next years in order to have a more equal society and a more balanced prosperity for all citizens.