Profits No Window to Nation's Economy

Summary


WASHINGTON -- U.S. corporations continue to post strong profits quarter after quarter, even as the unemployment rate remains high and the economic recovery plods along in fits and starts. What gives?

Corporate profits grew 36.8 percent in 2010, the biggest gain since 1950, according to a report from the Bureau of Economic Analysis. No sign could be more clear that U.S. companies see the Great Recession in the rearview mirror.

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Profits No Window to Nation's Economy

The strong profits, however, mask the continued difficult terrain for businesses. Yes, profits are high, but that doesn't mean business is strong.

"It's not that they're fake; it's that they're generated through a bunch of economic anomalies that are not the normal course or normal factors that generate profits," said M...

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