The tile should be "The Declining US Labor Share, Analyzed" instead of "Explicated." It's clear that the labor share has dropped relative to the capital (owners) share, but it is not clear why. The post examines some hypotheses.
The Declining US Labor Share, Explicated
Timothy Taylor | Managing editor of the Journal of Economic Perspectives, based at Macalester College in St. Paul, Minnesota
Labor isn't an asset, it's a liability.
ReplyDeleteIt's clear that the labor share has dropped relative to the capital (owners) share, but it is not clear why.
ReplyDelete1) Private credit creation is heavily privileged by government (e.g. only depository institutions may even use a Nation's fiat except for mere physical fiat, bills and coins, a.k.a. "cash".)
2) Thus what is being extended as private credit is, in actuality, the PUBLIC'S CREDIT but for private gain.
3) Automation and other labor cost reduction schemes are certainly deemed "credit worthy" by the banks and other depository institutions.
Thus the PUBLIC'S CREDIT has been/is available for the use of disemploying the public but for private gain. Is it any wonder then that capital owners have increased their share at the expense of labor's share?