Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Labor's Share Of National Income Drops To Lowest In History

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
Home » Discuss » Topic Forums » Economy Donate to DU
 
notesdev Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jun-03-11 08:35 PM
Original message
Labor's Share Of National Income Drops To Lowest In History

Probably the most imprtant secular trend in recent employment data, one that has a far greater impact on the macroeconomic themes than Birth/Death and seasonal adjustment manipulated month to month shifts in the employment pool per either the household or establishment surveys, is the labor share of national income. In a 2004 paper from the St. Louis Fed, the authors make the following statement: "The allocation of national income between workers and the owners of capital is considered one of the more remarkably stable relationships in the U.S. economy. As a general rule of thumb, economists often cite labors share of income to be about two-thirds of national incomealthough the exact figure is sensitive to the specific data used to calculate the ratio. Over time, this ratio has shown no clear tendency to rise or fall." It would be wonderful if this was true, and thus if the US population really had a stable distribution of income between laborers and capital owners. Alas it is dead wrong. In fact, as the latest note from David Rosenberg points out, the "labor share of national income has fallen to its lower level in modern history - down to 57.5% in the first quarter from 57.6% in the fourth quarter of last year, 57.8% a year ago, and 59.8% when the recovery began." And here is where the Marxist-Leninist party of the US should pay particular attention: "some recovery it has been - a recovery in which labor's share of the spoils has declined to unprecedented levels."


http://www.zerohedge.com/article/attention-marxists-lab...


Refresh | +14 Recommendations Printer Friendly | Permalink | Reply | Top
Turbineguy Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jun-03-11 09:38 PM
Response to Original message
1. Fewer and fewer
people are doing useful work.
Printer Friendly | Permalink | Reply | Top
 
George Wythe Donating Member (93 posts) Send PM | Profile | Ignore Tue Jun-07-11 07:31 PM
Response to Original message
2. Today, twice as many people work for the government than in manufacturing.
In 1960, the numbers were reversed.
Printer Friendly | Permalink | Reply | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Wed Aug 27th 2014, 02:39 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Topic Forums » Economy Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC