> that corporate profits would rise while consumer spend dropped are literally incompatible realities

These are not incompatible realities.

I would be willing to accept the statement that corporate revenues increasing and consumer spending decreasing are incompatible realities.

But it’s feasible to think the following occurs:

- labor income falls

- consumer spending drops

- corporate revenues drop

- corporate profits moderately increase because profit margins get much higher

- government deficit continues (which, from an accounting perspective, means other accounts are in surplus, potentially US corporations)

I’m not saying I strongly predict the above, necessarily! I just don’t think it’s correct to say it’s not a conceivable reality.