Apparently, the new Republican majority in the House and Senate has set its sights on undoing the regulations of the Dodd-Frank Act, the 2010 law passed in the wake of the financial crisis.
It’s not that the financial sector is hurting, as we can see in the chart above. Financial profits as a percentage of total corporate profits in the United States, while down from the 2001 peak, are back up to where they were (at just under 30 percent) during the mid-2000s boom.
And that’s not because corporate profits as a whole have fallen. As we can see above, total corporate profits in the United States (before tax) have reached a new record of more than $2 trillion in 2014.
Clearly, the current recovery has been good for profits—both financial and nonfinancial. But banks and other corporations want even more, and the new Republican majority has promised to…
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