Sunday, July 6, 2014

Ezra Klein — Transformers 4 is a master class in economics

A different way of putting this is that as capital rises in importance, labor loses its bargaining power. You can see that happening in the economy in recent decades. Corporate profits have skyrocketed as advances in technology have allowed corporations to make more things and sell them to more people. At the same time, the share of the profits going to labor — to workers — has fallen, as this graph from the Atlantic's Derek Thompson shows:

Capsule version of Piketty.

VOX
Transformers 4 is a master class in economics
Ezra Klein

1 comment:

Matt Franko said...

"At the same time, the share of the profits going to labor — to workers — has fallen"

Payroll comes before profits... labor is not compensated out of "profits"...

And this graph of profit growth looks suspiciously like the same for the price of a bbl of petroleum...

rsp,