Financial advisor updates his readers with blogs and a weekly newsletter.
Grand Rapids, MI -- (SBWIRE) -- 03/15/2013 -- The current economy in the U.S. can be hard to follow. Dennis Tubbergen is a financial advisor, author, radio show host and CEO of PLP Advisors, LLC and can be turned to when you need a little help understanding the latest economic happenings in the U.S.
Whether people enjoy his weekly newsletter at http://moving-markets.com or his blog at http://dennistubbergen.com, Tubbergen is devoted to breaking down current financial events so everyone can understand them. On March 7, his blog was titled Corporate Profits Up: Worker's Wages Down.
"It probably doesn't surprise you that corporate profits are near all-time highs while wages of workers are down," began Tubbergen.
He quotes from a Think Progress article published on December 3, 2012 below.
In the third quarter of this year, "corporate earnings were $1.75 trillion, up 18.6% from a year ago." Corporations are currently making more as a percentage of the economy than they ever have since such records were kept. But at the same time, wages as a percentage of the economy are at an all-time low.
Corporations made a record $824 billion in profits last year as well, while the stock market has had one of its best performances since 1900 while Obama has been in office.
Meanwhile, workers are getting the short end of the stick. As CNN Money explained, "a separate government reading shows that total wages have now fallen to a record low of 43.5% of GDP. Until 1975, wages almost always accounted for at least half of GDP, and had been as high as 49% as recently as early 2001."
"While this news is surprising to many, it shouldn't be," states Tubbergen. "When one studies history, you discover that money printing leads to this outcome. In my latest book, Finding Financial Freedom, I recount the story of Weimar, Germany. As the German government continued to print money after World War One in order to make the reparation payments that were demanded of the country, consumer prices rose much faster than wages, putting basic household goods out of reach for many German families. At the same time, the large industrial conglomerates benefitted from the inflation and raked in record profits."
According to Tubbergen, all this changed when the money printing stopped. Then the unavoidable deflationary forces of debt took over and profits plummetted.
"Where we ultimately end up economically speaking from here is no mystery if one looks at what's happened historically in similar situations," concludes Tubbergen. "The only question is the when. I'd offer you some friendly advice; when it comes to preparedness, it's better to be way early than a little late."
To read the blog in its entirety go to http://dennistubbergen.com and select his March 7, 2013 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM. To listen to his shows as podcasts go to http://everythingfinancialradio.com
About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at http://dennistubbergen.com. To view Tubbergen’s latest Moving Markets newsletter, go to http://moving-markets.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.