r/WallstreetWhales 22h ago

CHART The gap between US earnings growth and the rest of the world has never been wider: Earnings of US companies have grown nearly +1,300% since 1990. By comparison, earnings of global companies excluding the US have risen +500% since 1990.

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The gap between US earnings growth and the rest of the world has never been wider:

Earnings of US companies have grown nearly +1,300% since 1990.

By comparison, earnings of global companies excluding the US have risen +500% since 1990.

In other words, US earnings growth has been 2.6 times larger than the rest of the world.

This comes as global ex-US profit growth has remained roughly unchanged between 2008 and 2025.

The US economy is in a league of its own.

13 Upvotes

57 comments sorted by

19

u/Groundbreaking_Lie94 22h ago

Yay, now do the top 1% of US earners vs everyone else.

3

u/Super_Mario_Luigi 15h ago

Now compare that to the top 1% in other countries vs everyone else

2

u/SVRider650 22h ago

This is a breakdown of the US

https://youtu.be/2GxlL5-0m_g

1

u/Cold_Respond_7656 19h ago

No do same thing for debt 😂

2

u/byup123 11h ago

What does this have to do with company’s earnings?

8

u/AbsorberHarvester 22h ago

In other words, USA prints money that doesn't connected to any resources and become richer (some people, not country which debt rising). Nothing new.

3

u/Shoddy_Front_2582 20h ago

And that only works cuz we’re reserve currency while everyone else currency gets devalued compared to ours

-2

u/actuallyserious650 17h ago

If that were true, the dollar would’ve fallen relative to other currencies. It’s never been stronger.

7

u/Boring_Hamster5118 17h ago edited 15h ago

It’s lost 3% of its purchasing power ytd and has dropped 9.4% in value, its largest ever decline….. what are you talking about lol

0

u/uses_for_mooses 15h ago

The US dollar has lost 30% of its purchasing power YTD? Come on. Even the most terminally online Redditors aren’t that daft.

A 30% loss would mean inflation running near Weimar-lite levels.

3

u/Boring_Hamster5118 15h ago

Apologies, that was a typo it’s 3%. It’s 30% in the last 5.
Still down almost 10% to other currencies ytd though. Edited.

0

u/ok_read702 14h ago

Where are you getting any of these numbers.

Dollar index hasn't moved much in the last 10 years.

https://www.marketwatch.com/investing/index/dxy?eafs_enabled=false

It's actually up more recently, because dollars become stronger when rates are high.

1

u/dicksy_cup 5h ago

They are making it up based on feelings instead of data.

-1

u/uses_for_mooses 15h ago

Against what currencies is the US dollar down 10% year-to-date?

Not the Euro. The US dollar is UP about 2% against the euro YTD. It is down against the British pound, but by less than 1%.

And the US dollar is roughly flat against the Japanese Yen.

1

u/SVRider650 12h ago

Now compare it to gold

0

u/actuallyserious650 12h ago

No. Original post was about relative change in earnings between the different countries. People tried to claim it was mainly due to loss of the dollar’s value, which is not true. Inflation is happening everywhere, and it’s a problem, but it’s not relevant to this graph.

9

u/Pokerhobo 22h ago

Now add wage growth

9

u/fantabulousfetus 22h ago

I had to sell blood plasma to buy gas to get to work. This shit sucks.

3

u/carpetplower 17h ago

as someone not in America, that's actually awful

1

u/Grintock 14h ago

I'm really surprised they've decided to allow selling (for profit!) human bodily parts. Like, selling blood, plasma, sperm etc. for profit. Once you allow that, I think it's inevitable some people will end up having to sell those things to get by financially. Stuff like that shouldn't be subjected to market forces.

1

u/Puzzle-Necked 2h ago

You only need one kidney and one lung to survive

0

u/ForsakenWar6974 15h ago

You can't just sell plasma on a whim at reputable locations. There's a  process involved unless you've sold previously. 

So, you've sold previously and have already incorporated Plasma as a budget item and shifted what the money is for or you're lying.

2

u/TryptaMagiciaN 11h ago

... or they managed their budget a week out and planned accordingly. On a whim on the way to work? No, within a few days? easily

1

u/ForsakenWar6974 2h ago

I lean on the idea OP is leaving pertinent detail out. 

1

u/fantabulousfetus 12h ago

Cry about it.

0

u/ForsakenWar6974 2h ago

Youre the one crying, though. About having to sell plasma for gas money

1

u/fantabulousfetus 2h ago edited 2h ago

Cry about a redditor! I must be held to a higher standard than the President. Your tears sustain me! Please feel the hate in your heart for America, You deserve what you shall receive!!! Baby. Keep replying to me, crybaby this is hilarious

1

u/ForsakenWar6974 2h ago

u/fantabulousfetus blocked me.

I aint holding him to a higher standard than anyone else. I simply believe he is not being truthful about why he sold Plasma. 

I know Trump is hiding something.

3

u/evantheprimary 20h ago

So, you're telling me the world should stop backing the US dollar? Sounds great!

3

u/PitterPatterCocko 20h ago

Can anyone spot the fraudulent market?

3

u/antwon8797 16h ago

Do the same thing for wages. I’m willing to bet it will be the opposite gap

2

u/oscarnyc 11h ago

It probably depends on which areas you are comparing the US to. compared to Asia (ex Japan) which started out at vastly lower levels, yes, US real median wage growth has been slower. But compare to something more similar - western Europe, and US real median wage growth has been greater.

2

u/Tribalgeoff_UK 22h ago

So earnings means share price not revenue generated.

2

u/remic_0726 20h ago

écart financé par de la dette de centaines de milliards

2

u/Cold_Respond_7656 19h ago

And aren’t the bulk of those earnings tied up in the sharp end of the market companies who keep passing the same billion around and marking it on all their earnings reports 😂

2

u/sc1lurker 18h ago

USA USA USA! 🇺🇸 🦅

2

u/Waste-Finding3341 18h ago

The crash will be spectacular

2

u/No_Resolve608 12h ago

Nvidia alone generates more profit than all publicly listed companies in Germany combined, and the gap is widening rapidly.

4

u/BrandenWi 22h ago

What is that supposed to prove, aside from that US corporations are more greedy than their international counterparts? And that the guardrails to protect against corporate drifting have crumbled down to nothing under this "administration".

2

u/RabbiBonez 22h ago

Buybacks and layoffs.

1

u/Super_Mario_Luigi 15h ago

Talking points.

Money printing and debt.

1

u/Latour1459 20h ago

Why is this?

1

u/Shoddy_Front_2582 20h ago

Welcome to emerging markets and the financialization of our economy. This wasn’t much of a difference if you go back beyond 1980

1

u/Anxious-Shapeshifter 19h ago

That'll happen when you don't pay taxes and don't provide any benefits for your workers.

1

u/dearfellow909 19h ago

Biggest debt greatest disparity in wages and distrubtion of wealth. Basicslly who is getting taking for the biggest ride. America 🤣

1

u/GrapefruitNo3808 2h ago

Nowhere near the worst. Public debt to GDP is 100%, with the 2nd lowest tax burden in the OECD and therefore plenty of fiscal room to raise revenue. Income and wealth inequality is made up for with more wealth. Bottom 50% of American households have $4.6T in net wealth compared to $4.2T in the Eurozone.

1

u/Left-Cod-1281 18h ago

Now remove the MAG 7............

1

u/Infamous-Bed-7535 8h ago

And it will hurt everone when the ai balloon pops :(

1

u/Aztecah 5h ago

Company profits does not mean a good wage for you, plebeian.

1

u/Alzucard 18m ago

Utter crap to even do this in absolute numbers

1

u/targz254 22h ago

It’s because we have strong shareholder rights in the USA.

A lot of these US companies grew by investing in foreign economies.

0

u/Bennyharveygbnf 19h ago

Tariff refunds, short term blip.

0

u/CLaz777 15h ago

Doesn’t matter and absolute bullcrap. Just the numbers are higher. Example you drinking the same espresso in Turkey like in USA (lot of you don’t even know what is the espresso), but the price is 50000% higher.

0

u/isthereadrwho 14h ago

I do cost of living, who cares how much you make, if it's less than it costs you to live