Corporate profits helped by weak employment
Weak aggregate demand has two impacts on business, one negative and one positive. The negative impacts is on the top line with weak sales leading to weak revenue growth. The positive impact is on OPEX, with a weak labor market helping to hold costs in line. So, an economy with enough demand to hold up revenue, but still weak enough to keep labor markets in check, might be great for corporate profit. Without end-customer demand to justify hiring ramps or capex outlays though, that profit would just pile up as cash.
The strength (in profits) is directly related to the weakness in hourly wages, which are still growing at just a 2% nominal pace. The weakness of wages and the resulting strength of profits are telling signs that the US labor market is still far from full employment.The article ends on a somewhat corporate bashing note, I don't think it's reasonable to critisize corporations for trying to maximize profits, but I do agree that aggregate demand is the biggest economic issue in the US today.