Farkel, productivity is up because people have to work harder to keep the same measley job thanks to the union busting that Reagan started. Corporations benefit from the working man's sweat but they give all the credit to the stock holders and act as though the stock holder is God Almighty. The working man works off the clock regularly just to keep his measly job and to keep his grouchy boss from replacing him. This is the anti-labor environment which was caused by Reaganomics and which we have had to battle.
So, yes, profits are up in part because productivity is up and productivity is up because people are working their asses off due to the anti-labor environment. But that is only one piece of this equation.
Profits are up mainly because labor is so damned cheap now compared to product, pretty much ANY product, but mostly those products not represented by union. And because of outsourcing. Who do we have to thank for starting that?
This is why the right is in a tizzy over the "Employee Free Choice Act" because this would be the first step toward giving a little bit of power back to the laborer (God forbid the one who does the work have a little say-so). And God forbid Corporations and stock holders share a little bit of the profits with the ones who do the work. But I believe that it will ultimately be good for our country because people will start buying again. I want my kids to be able to afford autos and houses and all the things I can afford because I bought them when they were affordable.