Why are adjusted U.S. profits so low?

March 30, 2015 10:24 AM (UTC+8)

 

 

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After Capital Consumption Adjustment, GDP profits look a lot worse than the headline number–lower, in fact, than the fourth quarter of 2011. The simplest explanation for the gap between the adjusted GDP report and the higher level of S&P profits is that U.S. corporations are under reporting depreciation.

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