1 In the last five years, Republicans have enacted the largest increase in entitlement spending in three decades, doubled the education budget, nearly tripled the number of earmarked spending projects, and turned a blind eye toward the corrosive culture of corruption on Capitol Hill. - stephen moore

2 After 16 consecutive quarters of economic growth, pay is rising at a slower rate than in any similar expansion since the end of World War II. Companies are paying less of their cash gains in the form of wages and salaries than at any time since the Great Depression, according to government figures. Such a disparity, partly the result of globalization of the labor market, helps explain why the Bush administration is struggling to muster support for lower trade barriers even with the jobless rate at a four-year low. The imbalance has also triggered a debate between Bush's Treasury Department and the Fed about how low unemployment can go without kindling inflation. ``There is no doubt that something is happening'' to reduce labor's share of income, says Robert Solow, a Nobel Prize-winning economist and professor emeritus at Massachusetts Institute of Technology in Cambridge. An economy that doesn't distribute its gains widely is ``poorly performing,'' he says. From the final quarter of 2001 through last year's third quarter, total compensation paid to employees by corporations, including health benefits, rose at a 4.3 percent average annual rate, according to government figures. That's the slowest growth for any similar period in post-war expansions lasting at least four years. - bloomberg

3 Is there a conclusion in there that I'm missing? 1) what should be the "standard" for for a growth rate of compensation (including health benefits) by corporations. And while we're at it how about including small-businesses and public-sector employers. Why single out corporations? Because they're evil? 2) I'm always skeptical of analysis from an academic who probably hasn't worked a day in the private sector since undergraduate school. 3) beyond globalization and the "greed" of the evil corporations what other macroeconomic forces do you think could be contributing to this trend. Try to keep to 100 words or fewer, please. I have limited bandwidth.

4 when companies are paying less of a percentage of their revenue to wages, clearly something is wrong. it doesn't take a rocket scientist to figure out that if you dish out less of a percent of your money - then you're being greedy. by the way, what happened to the explosive, irrational vendective when you answered my post about the abu graihb? now you seem cool and level-headed, that's less funny. i liked that style better.

5 You caught me when I picked the wrong day to stop sniffing glue. Seriously though, if you thought that was "explosive" you need to get around the blogsphere more. As to your Krugman-esque economic analysis, you didn't answer any of my questions. 1) The growth rate you cite is way above the rate of inflation, which is also at record low. 2) If there is an optimum growth rate, I'm still waiting for your thoughts on that. Without a benchmark for comparison you're looking at the rate in a vacuum. Also, what would be your suggested rememedy for reaching it? Mandating a specific level through a goverment edict, perhaps? 3) If the gains of these corporations aren't being distributed to employees, where are they going? Are they being reinvested in the firm for capital expenditures to keep up with the needs of production growth? Are they being distributed as dividends to stockholders (who may also be employees with 401Ks)? Are they being invested in research and development to create new product lines? Are they paying down long-term debt to reinforce the firm's tangible net worth? Are they offsetting expenses to allow for price reductions (which benefit the consumer)? I suspect your answer would be: They give the money to the rich greedy evil Ken Lay's of the company so they can buy their private jets and support their excessive lifestyles (or something to that effect) which include feasting on live kittens. The principles involved are very complicated. Your conclusion that a lower growth rate of salaries/wages/benefits = greedy corporations is a bit too simplistic and, frankly, a little childish. "Companies are paying less of their cash gains in the form of wages and salaries than at any time since the Great Depression, according to government figures." I can make a lot of statements that aren't necessarily accurate or only tell part of the story and say it's based on "government figures". But, like your "70% to 90%" statement on the Abu Graib post, you fail to link or cite specific data to back up your assertion. And it turns out that this assertion is false. So I can't take anything you say at face value because you've already shown that a willingness to make a statements that you don't know to be true. I can, however, make general comments on economic concepts. Hope you learned something today.

6 And do agree with your first comment (of January 19, 2006 07:57 AM). That was the whole point of the post. Stephen Moore is a very intelligent man, you should read more of him instead of just pulling quotes to criticize Republicans.